Why Musk is Giving xAI’s Servers to Anthropic; AI Video-App Developer Reka Acquires Video-Generating Startup

Elon Musk’s xAI is transferring a significant portion of its server capacity to Anthropic, a move that underscores the shifting dynamics in the AI infrastructure landscape. As xAI, now under SpaceX’s ownership, grapples with financial pressures ahead of a potential public offering, this deal could alleviate some of the burden associated with underutilized resources.

The transfer involves approximately 300 megawatts of Nvidia AI servers, equating to over 220,000 server chips, which Anthropic has confirmed. This capacity represents about one-sixth of what OpenAI had at the end of 2025, highlighting the scale of the transaction. The servers are primarily sourced from xAI’s Memphis Colossus facility, which Musk previously touted as a competitive advantage. This move not only helps xAI mitigate its operational costs but also strengthens Anthropic’s infrastructure as it competes with established players like OpenAI and Google.

For users and the broader market, this transfer could lead to enhanced capabilities for Anthropic’s AI offerings, potentially accelerating innovation in AI applications. As competition intensifies, the redistribution of resources may influence how quickly companies can scale their services and improve their products. Investors and stakeholders will be closely monitoring how this shift impacts both xAI’s financial health and Anthropic’s market position.

Looking ahead, the industry will watch for further developments in server capacity deals and how they shape the competitive landscape among AI firms.