DataFunTalk

May 7, 2026 · Industry Insights

Musk Shuts Down xAI and Hands 220,000 GPUs to Claude – What It Means for the AI Race

Elon Musk announced the dissolution of xAI and its merger into SpaceX while simultaneously renting the entire Colossus 1 super‑computer—220,000 GPUs delivering over 300 MW of compute—to Anthropic’s Claude, a move that intertwines a high‑stakes legal battle with OpenAI, massive financial losses, and a strategic shift in AI infrastructure control.