Free NewsletterPro Login

Anthropic Just Locked Up Every Megawatt Of Musk's Colossus 1 Data Center

Published May 7, 2026
Share:
Summary:
  • Anthropic gets full access to Colossus 1 in Memphis. That is more than 300 megawatts of compute from SpaceX.
  • The deal also covers shared interest in building gigawatts of compute in space.
  • Musk publicly trashed Anthropic earlier this year. On Wednesday, he said he was "impressed."

A few months ago, Elon Musk called Anthropic "doomed" on X. This week, he handed them a data center.

Anthropic said Wednesday it had locked up the full output of SpaceX's Colossus 1 site in Memphis. That is the same plant Musk has been building for his own AI work. It now powers Claude.

From Public Feud To Compute Deal

Musk has spent the last year throwing punches at the firm. He said it "hates Western Civilization."

He asked if there was a "more hypocritical company" out there. He even said it was set to become "misanthropic," the reverse of its name.

Then he met with the team. In a post on X, Musk said he spent time with senior staff at the firm over the last week.

He came away surprised. "Everyone I met was highly competent and cared a great deal about doing the right thing," he wrote.

"No one set off my evil detector." That is an odd reset for two AI firms that go head to head.

It also lands during the most heated week of Musk's year. He just wrapped his time on the stand in the OpenAI suit in Oakland.

What Anthropic Gets

The headline number is 300 megawatts of compute. That is the rough power draw of a small U.S. city.

Here, all of that power is aimed at AI models. Anthropic says paid Claude Pro and Claude Max users will see better speed because of the deal.

The firm has been telling customers for weeks that demand has been straining its systems. Colossus 1 helps fix that without forcing the firm to build a new site from scratch.

The deal also covers joint interest in building "multiple gigawatts" of compute in space. SpaceX's launch arm is the only reason that line is anything but science fiction.

This is part of a buying spree. The firm just signed a huge deal with Amazon. It is also said to be raising new cash at a $900 billion price tag.

The Pentagon Fight Is Still On

While Musk is making peace, the firm's bigger fight is with the U.S. government. The Defense Department blacklisted it in March.

The Pentagon called the firm a supply chain risk. That came after talks broke down over how its models could be used.

The firm is now suing the Trump White House. The case is being heard in San Francisco and D.C.

Meanwhile, the Pentagon has been cozying up to xAI's Grok. Other AI vendors are also gaining ground there.

If the Pentagon contract stays out of reach, the Claude pipeline has to carry the load. That is part of why the firm is locking up so much compute right now.

What To Watch

The Colossus 1 deal is more than a power contract. It is a sign the firm thinks the number of Claude users will keep climbing.

Adding 300 megawatts is not the kind of move a firm makes if it expects demand to flatten out. The firm is betting that paid users keep growing into next year and beyond.

It is also a sign Musk will do business with firms he doesn't always like, as long as the check clears. For now, his truce with the firm ends one feud while another keeps running.

Disclosure

Get Market Briefs delivered to your inbox every morning for free!

No fluff. No noise. No politics. Just finance news you can read in 5 minutes.

Blogs

May 30, 2026
Financial Literacy Books That Actually Build Wealth
  • The best financial literacy books don't just teach budgeting, they shift how you think about money.
  • Two classics stand out: The Intelligent Investor for valuing investments, and Rich Dad Poor Dad for the owner's mindset.
  • Reading is only step one. The real wealth comes from acting on what you learn.
Read More
May 30, 2026
What Is a Roth Conversion? A Simple Guide
  • A Roth conversion moves money from a traditional retirement account into a Roth account.
  • You pay taxes on the money now, in exchange for tax-free growth and withdrawals later.
  • It can pay off if you expect higher taxes or more income in the future, but the timing and tax hit matter a lot.
Read More
May 30, 2026
Trailing Stop Loss: How to Protect Your Gains
  • A trailing stop loss is an order that automatically sells a stock if it falls a set percentage from its recent high.
  • As the stock rises, the sell point rises with it, locking in gains while capping losses.
  • It's most useful for active strategies like momentum investing, not for long-term buy-and-hold.
Read More
May 30, 2026
5 Types of Wealth: Why Money Is Only One of Them
  • Real wealth is more than a bank balance. It spans your finances, health, mind, purpose, and freedom.
  • Money is powerful, but it amplifies the life you already have rather than fixing a broken one.
  • True financial wealth means your cash flow covers your expenses, so your money works while you live.
Read More
May 30, 2026
How to Invest in Private Equity: A Beginner's Guide
  • Private equity means investing in companies that aren't listed on the stock market.
  • Traditional private equity is built for experienced, high-net-worth investors with large amounts to invest.
  • New rules have opened more accessible paths, like startup crowdfunding and real estate deals, often starting around $100.
Read More
May 30, 2026
What Is a Call Option? A Simple Guide With Examples
  • A call option gives you the right to buy a stock at a set price by a set date.
  • Investors buy calls when they expect a stock to rise, using less money than buying the shares outright.
  • The most you can lose buying a call is the premium, but time works against you, so it's an advanced tool.
Read More
May 30, 2026
EBITDA Formula: How to Calculate It Step by Step
  • EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of a company's core profit.
  • The formula adds those four items back to net income to show what the underlying business earns.
  • Investors use EBITDA to compare companies and to judge how many times earnings a stock is selling for.
Read More
May 30, 2026
What Is a Stock Option? A Plain-English Guide
  • A stock option is a contract giving you the right, but not the obligation, to buy or sell a stock at a set price by a set date.
  • There are two types: calls (the right to buy) and puts (the right to sell).
  • Options are powerful but risky, so they suit investors who already have the basics down.
Read More
May 30, 2026
Put Option: What It Is and How It Works
  • A put option gives you the right to sell a stock at a set price by a set date.
  • Investors use puts to bet a stock will fall, or as insurance to protect shares they own.
  • The most you can lose buying a put is the premium you paid, which makes it a defined-risk tool.
Read More
May 30, 2026
Operating Margin: What It Is and How to Calculate It
  • Operating margin shows how much profit a company keeps from its core business after paying its running costs.
  • The formula is operating income divided by revenue, shown as a percent.
  • A strong, steady operating margin signals a well-run business that controls its costs.
Read More
1 2 3 22
Share via
Copy link