In a surprising and significant pivot, Elon Musk has publicly lauded Anthropic, specifically praising their advanced AI models, Mythos and Fable. This marks a dramatic shift from his previous skepticism about the AI lab’s potential and its competitive standing. Musk recently assured users on X (formerly Twitter) that he would never “cut off” the rival company, emphasizing that such tactics are “not my style.”
Just last September, Musk had declared, “Winning was never in the set of possible outcomes for Anthropic,” a statement he now openly admits was “clearly wrong.” Even at that time, Anthropic was already making substantial inroads, reportedly holding the largest AI market share among enterprise clients. This turnaround underscores the rapidly evolving dynamics within the artificial intelligence industry.
The Billion-Dollar AI Compute Partnership
Musk’s newfound admiration and public assurances are deeply rooted in a monumental business deal struck between Anthropic and SpaceX. As of July 2026, Anthropic has become one of SpaceX’s largest customers, securing an unprecedented agreement for vast AI compute resources. This partnership fundamentally reshapes the competitive landscape for critical AI infrastructure.
The agreement, signed in May, sees Anthropic committing to purchase the entire 300 megawatts of compute output from xAI’s Colossus 1 data center, located near Memphis, Tennessee. This facility became part of SpaceX following xAI’s merger with the aerospace giant in February. The terms of this arrangement are staggering: Anthropic will pay $1.25 billion per month through May 2029.
This single contract is projected to generate roughly $40 billion in revenue for SpaceX’s xAI unit over its duration. For additional context, tech titan Google has also inked a substantial deal to rent SpaceX infrastructure, agreeing to pay $920 million per month through June 2029. These multi-billion-dollar agreements highlight SpaceX’s critical and growing role as a foundational infrastructure provider for leading AI developers.
Musk’s Pledge: Fair Play in the AI Arena?
Addressing lingering concerns that he might leverage his position to disadvantage a competitor, Musk strongly insisted that such actions are antithetical to his business philosophy. He publicly affirmed his deep admiration for Anthropic, stating, “They are obviously currently the leader in AI. No company has released a model as good as Mythos/Fable and they will undoubtedly have Mythos 2 ready soon.” This is exceptionally high praise from a direct competitor.
Musk further elaborated on his commitment to fair play, asserting, “And I would never cut them off in a way that hurt them badly, even as a competitor. That’s not my style.” To substantiate this claim, he pointed to several instances from his past ventures where he believes he demonstrated a magnanimous, or at least non-adversarial, approach to shared technology and competition.
- In 2014, Tesla decided against initiating patent lawsuits against anyone who, in good faith, wished to use its technology, a policy now housed under its patent pledge.
- Tesla also took the significant step of opening its proprietary Supercharger network and charging port design to other electric vehicle manufacturers, fostering broader industry adoption.
- Musk cited SpaceX’s practice of launching competing satellite systems “with no increase in price or use of unfair terms,” emphasizing its impartial approach as a launch provider.
- He even highlighted the free speech principles on X, noting, “Even my worst enemies can attack me on this platform.”
Beyond Public Promises: Contractual Safeguards and Strategic Implications
While Musk’s public assurances are noteworthy, Anthropic is certainly not solely relying on his “style” to ensure the stability of their critical compute infrastructure. Such a substantial, multi-year agreement undoubtedly comes with robust contractual protections. Any sudden shutdown or withdrawal of services by SpaceX would trigger significant legal and financial consequences, making it an extremely unlikely scenario.
Furthermore, maintaining this partnership offers immense strategic benefits for SpaceX beyond the impressive revenue stream. Hosting Anthropic’s rapidly expanding AI models could provide SpaceX engineers with invaluable insights into building for and supporting cutting-edge AI infrastructure. This close collaboration presents a unique opportunity for unparalleled technical learning and development.
However, proximity to a leading AI competitor always raises questions about data and operational visibility. Musk himself acknowledged the reality of “AI distilling” during his trial against OpenAI, a process where one model maker probes a competitor’s models to learn their workings. While Anthropic and Google likely have robust safeguards in place, hosting compute could still grant SpaceX a level of operational insight that most rivals would never obtain.
It’s worth noting that Anthropic itself accused three Chinese model makers of engaging in distilling practices against its Claude models back in February. This highlights the industry’s awareness and concern regarding such competitive tactics. The delicate balance between partnership and competition remains a core tension in the fast-paced AI sector.
For now, the partnership appears overwhelmingly advantageous for SpaceX, securing massive revenue and invaluable experience in AI infrastructure. For Anthropic, it provides crucial compute resources for its ambitious roadmap. As this three-year contract unfolds, the full implications of this intricate, high-stakes collaboration will undoubtedly shape the dynamic world of artificial intelligence.
Source: TechCrunch – AI
