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Notes on the xAI/Anthropic data center deal

Anthropic has partnered with SpaceX/xAI to utilize the full capacity of the controversial Colossus data center, which has faced criticism for its environmental impact. The deal comes as Anthropic faces compute constraints, though it risks negative publicity given the data center's poor environmental record. Meanwhile, xAI is maintaining its larger Colossus 2 facility for its own work, while deprecating several Grok models with short notice.

Background

AI companies are increasingly facing scrutiny over the environmental impact of their data centers, with concerns about energy consumption and local environmental effects. The industry is also experiencing intense competition for compute resources as AI models grow larger and more resource-intensive.

Source
Simon Willison
Published
May 8, 2026 at 01:09 AM
Score
6.0 / 10