Elon Musk said xAI will no longer exist as a standalone company and has been renamed SpaceXAI, now positioned as SpaceX’s AI product business. The move follows SpaceX’s all-stock acquisition of xAI in February 2026 and marks a full organizational integration. The combined valuation was stated at $1.25 trillion, with xAI accounting for $250 billion and SpaceX for $1 trillion.
Anthropic takes the full Colossus 1 capacity
On the same day, Anthropic announced it had secured all of the computing capacity of Colossus 1. The system exceeds 300 megawatts and includes more than 220,000 NVIDIA GPUs, covering H100, H200, and GB200 chips. It is expected to come online within one month and will be used to expand capacity for Claude Pro and Claude Max subscribers. The facility is located in Memphis, Tennessee, and was originally built by xAI to train the Grok model family.
The two sides also signaled interest in building multi-gigawatt orbital AI compute infrastructure. The concept involves data centers in low Earth orbit powered by solar energy and cooled through the vacuum of space. That gives Colossus a very different role from the one it was built for: an asset designed to support Grok is now being leased in full to Anthropic, one of the major competitors in the model race.
Terafab chip project launches in Texas
SpaceX also announced a new semiconductor plant called Terafab in Grimes County, Texas, alongside Tesla, xAI, and Intel. The project starts with $55 billion in investment and could reach as much as $119 billion in total. According to the announcement, the factory is intended to cover the full AI chip chain, including design, manufacturing, memory, and packaging, with output aimed at Tesla’s self-driving systems, humanoid robots, and AI data centers.
Morgan Stanley estimated that the first chip from the project may not arrive until mid-2028. That leaves a gap between the scale of the announced spending and the timeline for actual production. Still, the combination of xAI’s integration, the monetization of Colossus, and the launch of Terafab shows SpaceX reshaping its AI and infrastructure operations at the same time.