Elon Musk’s xAI Is Becoming a Cloud Firm

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Is xAI the next CoreWeave? SpaceX’s announcement on Wednesday that its xAI unit had struck a deal to supply computing capacity to Anthropic comes a couple of weeks after xAI struck a similar deal with AI coding startup Cursor. Last we checked, AI firms with leading models need all the computing capacity they can get, which means they’re constantly looking for capacity from others. Renting out their own capacity is unheard of for most of them. That’s precisely why Anthropic is doing this deal.