Published on May 7, 2026
xAI’s Grok models have faced a striking decline in usage, prompting the company to lease its substantial computing resources. While competitors scramble for computing power, Grok’s low demand allows Elon Musk to arrange a deal where SpaceX’s Colossus 1 data center will serve another AI player—Anthropic. This unexpected pivot reveals significant shortcomings in Grok’s performance in the competitive AI landscape. Anthropic recently announced it will utilize all 300 megawatts of computing capacity from Colossus 1, equivalent to over 220,000 NVIDIA GPUs. This arrangement, confirmed , aims to enhance its Claude Pro and Claude Max subscription services. With Grok’s diminishing footprint, Musk’s decision prioritizes strategic partnerships over internal development, reflecting a shift in the AI power balance. Musk emphasized his endorsement of Anthropic during a social media post, noting his satisfaction with the team’s commitment to responsible AI development. Meanwhile, Grok has shifted its workloads to another facility, clearing the path for Anthropic’s real-time computational demands. This strategic redirection hints at Musk’s broader ambitions within the AI sector and his ongoing rivalry with OpenAI. The collaboration between SpaceX and Anthropic could pave the way for ambitious plans, including developing orbital AI compute capacity. However, technical challenges loom as the emerging partnership explores solutions for data transmission between space and Earth. As Grok cedes its position, questions arise about the future viability of Musk’s AI ventures in this rapidly evolving market.
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