Why Musk is Giving xAI’s Servers to Anthropic; AI Video-App Developer Reka Acquires Video-Generating Startup

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 tremendous scrutiny over its AI-related losses.

So after xAI recently struck a deal to offload server capacity to AI coding assistant Cursor, which SpaceX is in the process of acquiring, xAI said Wednesday it’s handing over a considerable number of its Nvidia AI servers to Anthropic—300 megawatts’ worth to be exact, according to Anthropic, or more than 220,000 Nvidia AI server chips, according to xAI’s announcement about it. (To put it into context, that’s about one-sixth the server capacity OpenAI had at the end of 2025 for all its products as well as training clusters.) 

The deal essentially involves the entire Memphis Colossus facility that xAI chief Elon Musk crowed about more than a year ago and which (at the time, at least) put a scare into competitors like OpenAI because of how quickly his team built it.