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SpaceX Rented Out Computing After Own Teams Had Trouble Using It

SpaceX Rented Out Computing After Own Teams Had Trouble Using It
Bloomberg Technology Friday 12 June 2026, 18:30 UTC By Edward Ludlow 1 min read
Key Points

SpaceX Rented Out Computing After Own Teams Had Trouble Using It - Musk’s firm struggled with latency issues with Colossus 1 - SpaceX has made AI infrastructure a key part of its IPO pitch SpaceX decided to rent out the full capacity of its Colossus 1 data center in Memphis to Anthropic PBC after encountering technical challenges using the facility to develop and run its Grok artificial intelligence models, according to people familiar with the matter. Elon Musk’s company had planned to...

SpaceX Rented Out Computing After Own Teams Had Trouble Using It - Musk’s firm struggled with latency issues with Colossus 1 - SpaceX has made AI infrastructure a key part of its IPO pitch SpaceX decided to rent out the full capacity of its Colossus 1 data center in Memphis to Anthropic PBC after encountering technical challenges using the facility to develop and run its Grok artificial intelligence models, according to people familiar with the matter. Elon Musk’s company had planned to train its most cutting-edge AI models on a massive amount of computing power by using a cluster of three data center campuses. However, the firm encountered latency issues when connecting Colossus 1 with two other sites located more than 10 miles away, the people said, compounded by aging network infrastructure.
SpaceX Rented Out Computing After Own Teams (ORG) Colossus 1 - SpaceX (ORG) AI (ORG) IPO (ORG) SpaceX (ORG) Memphis (LOCATION) PBC (ORG) Elon Musk’s (PERSON)
Originally published by Bloomberg Technology Read original →

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