xAI Turns Neocloud Before SpaceX IPO

Anthropic has struck a deal to take over all compute capacity at xAI's Colossus 1 data center in Memphis, Tennessee. The move effectively turns xAI into a neocloud, renting out GPU infrastructure rather than using it to train its own AI models. Critics see the deal as a cynical pre-IPO maneuver, especially as Grok remains a minor player in AI and xAI co-founders have departed. With SpaceX planning to dissolve xAI as a separate entity and rebrand as SpaceXAI, questions mount about the company's long-term innovation credentials.