Speaker 0:  anthropic just pulled the ultimate power move to save claude from melting down, and they did it by shaking hands with their biggest critic. we're talking 220,000 gpus coming online in thirty days. this isn't just an upgrade. it's a total rewrite of the ai scaling playbook. anthropic just hacked its own growth using spacex. anthropic secured a 100% access to spacex ai's colossus one supercomputer in memphis to end the computer choking their models. this deal adds 300 megawatts of immediate power to their stack, enough to stop the constant outages and the throttling. this effectively ends the error of cloud rate limit frustration for power users and moves the ai arms race from silicon labs to orbital space. what do you think about this, john?

Speaker 1:  so the more we cover about xai and spacex and elon, the more news that comes out, the more i get excited about the actual ipo for spacex, that it actually does have some value now. when it was first announced, and you and i had this discussion, we thought it was kind of, a smoke and mirrors kind of thing. but the more deals that elon is making, the more that, that this, that this ipo seems to, to to to make sense. so just to understand the scale of this, like, 300 megawatts, that's enormous for ai, infrastructure. many hyperscale data centers today, they operate well below this. and so, the other thing to understand is that ai training clusters are becoming some of the largest electricity consumers in the world. and so, the thing with this is the gpus involved are primarily nvidia accelerators, which are optimized for llm training and interference. the chips are specifically designed for massive tensor operations used in transformer architecture. so what's the mathematical backbone of systems like claude, gpt, gemini, and croc. so what this partnership essentially allows anthropic to do is massively expand both training capacity for future frontier models and interference capacity for live customer usage, which are the two things. so i feel my personal opinion is that, anthropic is ahead of all of these other ais when it comes to, capabilities of their llms, and, obviously, that could be a point of contention. but this just put them miles ahead, if this deal actually happens and goes through. what are your thoughts?

Speaker 0:  i have lots of thoughts on this because each of these companies bet on different bets. daria, the ceo of anthropic, went out we had a famous interview not too long ago. said they couldn't assume that the need was gonna scale at the level it currently was to scale out the hardware. so they didn't scale out the hardware at 10 x per month or whatever it was because it was just if they bet wrong, they would have lost the company. it was just too much money. elon went the other way, bought all this hardware, and not enough people are using his system. so he went out and they're made the deal with, obviously, with anthropic, but they also made the deal with cursor recently, so that they may end up owning cursor at the end of the year. so there's a lot of training data and capacity and money potentially going back and forth here that allows, you know, these gpus were bought and just sitting there. mhmm. so spinning them up to get these guys using them now gets it, get some revenue flowing and things happening. so we also know that anthropic was getting a lot of outages. cloud is down at the moment. they're they were changing their plans, shortening how many tokens you got in your five hour period, changing whether you could use oauth and whatnot to log in and access your tokens. and this was all related to capacity. and now most of that disappeared overnight. now you're saying you're getting five times the hourly tokens, as a thank you and whatnot because they're getting this new hardware and whatnot. so when you see those types of things that, ai is being down a lot and throttling tokens and what, it usually means they're having a capacity issue, and you'll see news where they're increasing capacity and whatnot. so i'm excited to see more and more of these, companies actually cooperating. because let's face it, elon musk is not a fan of openai, and he was very critical of anthropic. but now, you know, a lot of these companies are working together. maybe not openai because they're still in a lawsuit, but that's a whole other issue. think of this update like a city that's been suffering from constant blackouts because everyone bought electric cars at once. instead of waiting years to build a new power plant, anthropic just rented the world's biggest industrial generator from the guy across town. they didn't just add a few batteries. they plugged the entire city into a rocket power grid. so this is amazing. the colossus, is the most powerful supercomputer in the world as far as, we all know. and i'm excited as to where, anthropic is gonna take this.

Speaker 1:  yeah. there's actually and we can cover it. there's this other company that just went ipo that actually they build, ai chips on an entire wafer. so they use an entire wafer for one chip, but we can cover it. i can't remember the name of the company, but let's let's go back to this. so let's explain why this is such a big deal. because historically, the ai race, it was framed around algorithms, act model architectures, and talent. okay? but now, like you said, craig, the bottleneck is compute infrastructure. and so, the frontier ai ai labs are entering an era where success depends on electricity access, chip supply chains, cooling systems, fiber connectivity, land, and financing. and so, anthropic, like you said, they've report they've, faced increasing strain due to popularity of their cloud project, especially cloud code. and so this new spacex deal immediately increases all of that, and this is critical because of a enterprise ai adoption. right? they have the highest enterprise ai adoption. so in order for them to maintain everything, this is critical. this kind of surprised me, but, now that we're like, now that it's been announced, it makes total sense. right?

Speaker 0:  yes. and this deal is estimated to generate 1 to 3,000,000,000 in annual revenue for spacex, effectively helping fund, musk's starship program, via his competitor's growth. the colossus one facility in memphis uses a proprietary closed loop cooling system that can dissipate more heat per square foot than almost any commercial data center on earth, a necessity for the extreme thermal output of the gb 200, chips. and we are entering a stage now in the last few months where most of the llms are becoming hardware agnostic. a couple years ago, that was not the case. llms were trained to run on specific hardware. now i think they're being able to move with the, google's gpus, amazon gpus, nvidia's gpus, and being able to run the suite across them. so things have changed on the training and the writing of these lms to make sure they are compatible across the gpus, which is very interesting. despite this partnership, elon musk previously called anthropic doomed. he reportedly gave the green light for this deal only after meeting the founders and declaring his evil detector didn't go off. so we'll have to see about this orbital ai. skeptics say that the orbital ai part of this deal, putting data centers in space, is currently a five to seven year moonshot. heat rejection in a vacuum is a nightmare, and physics hasn't solved the latency of beaming, the thoughts from orbit back to earth yet. like, because space is cold, people think you can dissipate heat into space, but that's not the case because then there's transfer inside the ship and it becomes a whole other issue. so they haven't solved that problem.

Speaker 1:  and radiation. with radiation. that's a big thing.

Speaker 0:  yeah. so, check your cloud api tiers. if you're stuck in tier one, your throughput just 10 x'd overnight. it's time to ship those heavy agentic workflows you've been sitting on. anthropic just traded a massive check for the keys to the world's fastest garage, proving that in 2026, compute capacity is a more valuable currency than model architecture. maybe. is leasing your hardware from a direct competitor a genius move to scale fast, or is anthropic handing elon the keys to their future? let us know what you think in the chat.