Is xAI a neocloud now? | TechCrunch
Briefly

Is xAI a neocloud now? | TechCrunch
"The partnership between xAI and Anthropic allows Anthropic to immediately raise its usage limits, monetizing xAI's impressive data center capabilities and shifting its business model."
"This arrangement suggests that xAI's real business may be more about building data centers than training AI models, a departure from the norm in the tech industry."
"Having Anthropic as a customer makes it easier to believe that SpaceX's orbital data center play might actually work, adding credibility to xAI's future endeavors."
xAI and Anthropic have formed a partnership where Anthropic acquires all compute capacity at xAI's Colossus 1 data center, valued at billions. This move allows Anthropic to increase its usage limits and monetizes xAI's capabilities. The partnership is strategically beneficial for xAI, especially as it prepares for an IPO. It indicates a shift in priorities for Elon Musk's company, suggesting a focus on building data centers rather than solely training AI models, contrasting with other tech companies that typically retain compute for their own use.
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