Why Musk is Giving xAI’s Servers to Anthropic; AI Video-App Developer Reka Acquires Video-Generating Startup
300 megawatts. Elon Musk just handed xAI's entire Memphis Colossus to Anthropic—a $2B+ infrastructure play disguised as capacity offloading.
Why it matters
xAI's underutilized server capacity is becoming a financial liability for SpaceX's IPO filing. By offloading 220,000+ Nvidia chips to Anthropic, Musk is converting stranded capex into a strategic partnership while cleaning up the balance sheet before public markets scrutiny.
The key facts
7 to knowxAI transferring 300 megawatts (220,000+ Nvidia AI server chips) to Anthropic
Memphis Colossus facility involved in deal
Transfer represents ~1/6 of OpenAI's end-2025 server capacity
xAI servers underutilized vs. OpenAI and Anthropic at capacity
SpaceX preparing for IPO with AI-related losses under review
xAI previously offloaded capacity to Cursor (being acquired by SpaceX)
Deal announced Wednesday, May 7, 2026
Go to the source
The Informationtheinformation.com
Publisher excerpt: OpenAI and Anthropic’s servers are generally bursting at the seams, while xAI’s mountain of servers aren’t as busy, as we and others recently reported. That’s burning a multibillion-dollar hole in the pocket of new xAI owner SpaceX, which is trying to go public soon and is sure to receive…