Deal gives IPO-bound SpaceX a marquee customer, while helping Anthropic ease capacity constraints.

Anthropic said it's forged a deal with SpaceX, which owns rival xAI, to use all of the compute capacity at the company’s Colossus 1 data center in Memphis, Tennessee.

In an unexpected turn, the two companies signed a deal for Anthropic to use computing resources from Elon Musk’s xAI.

Deal gives IPO-bound SpaceX a marquee customer, while helping Anthropic ease capacity constraints.

Anthropic's latest compute deals will allow it to increase usage limits for Claude Code and Claude API for paying users.