Elon Musk Disbands xAI and Allocates 220,000 GPUs to Anthropic

Elon Musk officially confirmed that xAI will be dissolved and its large‑language model Grok, along with X‑related services, will be merged into a new SpaceX sub‑unit called SpaceXAI.

The move traces back to February 2026, when SpaceX fully acquired xAI in a deal valuing the combined entity at $1.25 trillion; by the end of March 2026 all eleven original co‑founders had left.

Analysts note that integrating xAI into SpaceX lets Musk centralise rocket, satellite, AI infrastructure and data platforms under one governance structure, shifting regulatory and litigation risk to SpaceX’s larger corporate boundary and aligning with SpaceX’s vision of orbital solar‑powered data centres.

As part of the same announcement, SpaceX and Anthropic struck a partnership granting Anthropic access to the world’s largest AI super‑cluster, Colossus 1, which comprises more than 220,000 Nvidia GPUs and over 300 MW of compute power, intended to enhance the paid‑user versions Claude Pro and Claude Max.

Anthropic detailed three immediate changes: (1) doubling the five‑hour rate limit for Pro, Max, Team and Enterprise Claude Code users; (2) removing peak‑hour rate throttling for Pro and Max accounts; and (3) substantially raising the API rate limits for the Claude Opus model (see accompanying table).

The partnership is portrayed as a win‑win: SpaceX gains a high‑profile AI customer ahead of its IPO, while Anthropic alleviates the capacity bottlenecks that previously forced usage limits on Claude Code, which had drawn community criticism.

Prior to the deal, xAI had been aggressively building its own AI compute infrastructure, reportedly operating dozens of natural‑gas turbine generators for its Colossus facility and claiming they required no federal permits because they were temporary.

Musk added that SpaceX has already moved its AI training workloads to the forthcoming Colossus 2 system and intends to offer “fair‑priced” compute to other AI firms dedicated to benefiting humanity, mirroring SpaceX’s approach of launching satellites for competitors on equitable terms.