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xAI, a subsidiary of SpaceX, has partnered with AI company Anthropic to rent out its compute capacity at the Colossus 1 data center in Tennessee. The deal allows Anthropic to focus on developing enterprise-focused AI products.

The move raises questions about xAI's future as a separate entity within SpaceX, which is preparing to go public and reportedly plans to dissolve xAI. Critics argue that xAI is not prioritizing the development of its own frontier AI models and instead is focusing on renting out its infrastructure.

xAI's parent company, SpaceX, is facing an environmental lawsuit over Colossus 1, adding another layer of complexity to the situation.