Anthropic signs xAI compute deal for Colossus 1 capacity

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What happened

Anthropic and xAI announced a compute partnership on May 6, 2026. Anthropic will use the full Colossus 1 data center in Memphis, Tennessee. The site has more than 300 megawatts of power and more than 220,000 NVIDIA GPUs. The first capacity is set to come online within the month. Reuters frames the agreement as xAI leasing underused Colossus 1 capacity to Anthropic.

Reporting around the deal also notes ties to SpaceX, which has been linked to Colossus 1 buildout work. Anthropic's official post focuses on the xAI partnership and the immediate compute boost for Claude.

Anthropic paired the deal with new usage limits. Claude Code rate limits doubled for paid plans. Peak hour caps for Pro and Max accounts were removed. Developers also got a sharp increase in the number of requests they can make against Claude Opus models.

Why it matters

The deal expands Claude's compute base on top of existing AWS and Google Cloud commitments. Higher rate limits matter for power users. Anyone running Claude Code agents or batch workflows often hits caps during peak hours. Removing those caps changes what teams can actually run during the workday.

The partnership also includes early exploration of orbital compute capacity, described as a long term direction rather than a near term product.

MintedBrain take

For heavy Claude users, the higher limits land first. For everyone else, the bigger story is that compute supply for frontier labs now spans cloud, large data centers, and proposals for space. The arms race is moving from model size to raw electrical capacity.

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