Space Exploration Technologies (SPCX) decided to rent out capacity at its Colossus 1 data center in Memphis, Tennessee, to Amazon.com-backed (AMZN) Anthropic to create a new revenue stream after experiencing technical difficulties in using the facility, Bloomberg reported Friday, citing people familiar with the matter.
SpaceX originally planned to use the facility to develop and run its Grok artificial intelligence models via a cluster of three data center campuses, but the firm faced latency issues and hardware variations, making it difficult to connect Colossus 1 to the other two sites, the report said, citing the people.
Colossus 1 runs on Nvidia's (NVDA) Hopper and Blackwell systems and some other older accelerators, while two other sites are built more uniformly around Blackwell chips, the people reportedly said.
SpaceX did not immediately respond to' request for comment.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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