❯ SpaceXAI plans to bring about 420,000 Nvidia GPUs online in November and has discussed renting compute to Microsoft

A 420,000-GPU paceAccording to an exclusive from The Information, SpaceXAI plans to bring about 420,000 Nvidia GPUs online in November to meet billions of dollars in new compute commitments. Musk’s previously announced buildout adds roughly 220,000 GB300 chips per batch, which could take the total to about 1.44 million by year-end.

From in-house use to rentalsSpaceXAI is the AI business formed after Musk folded xAI into SpaceX; its Colossus supercomputer was originally used mainly to train Grok. The Information also reported that it has held talks with Microsoft about leasing capacity and has already signed outside customers, including Anthropic, which rents Colossus 1. The report said Musk initially opposed a cloud business but has since changed his mind.

One more seller in the cloud marketSpaceXAI gives compute-hungry companies like Microsoft and Anthropic another option beyond Amazon, Google and Microsoft’s own clouds, which could improve their bargaining power. But SpaceXAI has to install and power the GPUs on time, or the new contracts will turn into pressure.

▪ SIGNALEven the most aggressive builder of its own compute has found that selling compute makes the economics easier to justify than only using it.