Hot take on Elon’s surprise decision to rent 30 megawatts of compute to Anthropic: 1. It’s a tacit concession that xAI is not all that close…

Hot take on Elon’s surprise decision to rent 30 megawatts of compute to Anthropic: 1. It’s a tacit concession that xAI is not all that close to AGI (despite what he suggested last year). 2. It’s more evidence that pure scaling doesn’t get you to AGI. 3. If xAI turns out to be just another cloud company, in an increasingly crowded market, SpaceX investors very likely overpaid. 4. The very fact that xAI has an enough of oversupply to sell some to a big competitors doesn’t bode well for hyperscalers. We may very quickly find ourselves in a world where supply outstrips demands and prices drop precipitously. 5. Customers win but … 6. Companies like Amazon, Google, Meta, Microsoft and Oracle could all take a hit, especially given what they have done to their cash flows to build up their cloud compute resources. Anthropic rents out the entire Colossus 1 datacenter from xAI / SpaceX with over 220,000 Nvidia GPUs including approximately 150,000 H100 GPUs, 50,000 H200 GPUs, and 30,000 GB200

Source: Gary Marcus (X) | 2026-05-07