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Discussion (179 Comments)Read Original on HackerNews
Since Cursor often relies on Claude models, some of those services will flow back to their own datacenter compute. Especially if there's, lets call it, "customer demand loadbalancing optimization agreements" that makes those Cursor services prioritize Claude models using the app keys that get load-balanced onto the SpaceX datacenter.
Did SpaceX just spend $10B to rent out its own datacenter, juicing their recurring revenue metrics with their own AI services investment?
It is publicly known that the vast majority of deals in the AI space are circular in nature without the need for explicitly encoding any of it in a legal contract or even tacit agreements.
e.g. Nvidia has invested significantly in many AI companies including both Anthropic and OpenAI which rely heavily on Nvidia's hardware and will undoubtedly use some of said investment towards that end.
From Elon on X: ... After that, I was ok leasing Colossus 1 to Anthropic, as SpaceXAI had already moved training to Colossus 2.
https://x.com/elonmusk/status/2052069691372478511
Then you've got SpaceX buying 1200 cybertrucks from Tesla, so it's serving as failure laundering vehicle for all his endeavors.
Which would be fine to me if Tesla wasn't a publicly traded company and SpaceX wasn't about to IPO. Whereas juicing companies in a way that affects the open stock market feels very inappropriate.
Anthropic gets the compute they so desperately need to keep growing. Elon rents out compute that xAI couldn't make use of due to little demand for Grok. SpaceX gets revenue on the books for IPO.
PS. I want to translate this part:
To real speak:Considering that Anthropic mass-bans Chinese users accounts based on using VPN (used to circumvent the Chinese firewall) and then demands an ID or a residence permit of a country where Claude officially works to ensure that the user doesn't live in China, seems unlikely.
What's the problem here exactly? Are you insinuating any non-democratic government is bad and evil and only democratic governments are the correct and right way to govern? sort of like: "there is only one true prophet, and it's the one I follow, and all the others are false!"
My point is that Anthropic cares a lot about "democracy" but will buy compute from a data center mostly funded by non-democratic nations.
Anthropic is either taking this space business more serious than the general public, or posting this sentence was part of the deal to get the compute.
I suppose if you are desperate to justify a large investment this what you would do - frame the story in a particular way.
There is no doubt that it's not a serious idea.
That claim seems reasonable. I have zero knowledge of the economics of launching and maintaining satellites though.
I want to be clear, I do think that one day something like that will exist, I just don't think it's anywhere close to being a reality, much like FSD.
Also it costs them, almost [0], nothing to say it and then later come up with some reason why they are no longer interested.
[0] Maybe a little bit of respect
All it says is expressed interest.
That's like asking a casual how are you...
If it happens it happens, if not, it doesn't.
This is stupid. I don't understand what's happening... specifically, what mental virus is spreading that lowers everybody's IQ by 10-20 points, evidently including my own. Put the data centers in the ocean, powered by solar and networked with Starlink or LEO. Put them in the desert. Put them 20 miles south of Nowhere, Idaho.
But space?!
Elon claims (which I take with a huge grain of salt because he's made endless broken promises in investor calls and interviews) that he disagrees with the administration's stance on solar and would use it to power his DCs if he could, but contends that permitting is a huge problem.
The US needs to figure out how to build again.
> This is stupid. I don't understand what's happening... specifically, what mental virus
"Be kind. Don't be snarky. Converse curiously; don't cross-examine. Edit out swipes"
I also hope that the fact I had OpenClaw in my sandbox once is not why I hit these limits so damn fast. I don't use it anymore and I've tried to rid my sandbox of anything "openclaw" but it is in my git history in various places on various projects. Claude doesn't seem to be transparent about this limitation.
The 5h windows are frustrating because I can go through them quickly if I have a more complex task. I haven't yet met the weekly limit. I'd say there are many cases similar to mine.
Mentally i think about the weekly usage in terms of usage per day so about 14% per day which results in me not using that much early in the week so i can kinda "burn freely" later on. which leads me to a spot where usually on the final two days im sorta thinking about how can i expend that usage ive "saved".
the 5 hour windows make this harder, sometimes the final day of the week im trying to get that 10% in every 5 hour window of my waking hours and i HATE that, i wanna work when i am most productive, not around some ridiculous window of time, i dont wanna think "I am gonna be utilizing claude the most around 11am so i should send a dumb message to haiku to get my 5 hour window started at 7:30am so i can have it roll over at 12:30."
So im happy about this change sure. But it is 100% them creating a problem and pretending having some relief from that problem is them doing their users a favor. I understand they are doing it to lower peak hours usage and all that, I still despise it.
20%, there are 5 work days in a week, not 7.
>The following three changes—all effective today—are aimed at improving the experience of using Claude for our most dedicated customers.
>First, we’re doubling Claude Code’s five-hour rate limits for Pro, Max, Team, and seat-based Enterprise plans.
>Second, we’re removing the peak hours limit reduction on Claude Code for Pro and Max accounts.
>Third, we’re raising our API rate limits considerably for Claude Opus models,
Looks like Elon's finally giving up on XAI and just selling the compute
I don't think that's certain yet, but I do think that the open-source models like Gemma and Qwen are getting so good so fast that even Anthropic has real risk around the long-term value of their models and tooling.
Basically, if I'm Anthropic or xAI, I try to get revenue whenever and wherever possible and see what sticks. There's no value in playing for monopolistic control when everything is so volatile.
I'd run agents consuming hundreds of millions of tokens for less than a hundred dollars.
I'm just speculating, but a particularly killer offering Elon wouldnt be able to refuse would be if Anthropic agreed to give them some training data / technology.
Or is that actually his main motivation. Hard to know. Either way it's a win win win for him.
But even then, I suspect their hands were tied in some areas because Elon had some expectations from his AI.
-Elon
https://x.com/XFreeze/status/2012390928221094335
So you can put Anthropic on your list of companies that like to talk big about safety, but when the rubber hits the road, profits matter more than safety.
"The company began operations at its first site, Colossus 1, in June of 2024 and used as many as 35 unpermitted gas turbines to power the facility. Despite receiving intense public pushback over the use of illegal turbines and the lack of public input and transparency around Colossus 1, xAI officials said it planned on “copying and pasting” its unlawful turbine strategy to power Colossus 2."
"xAI removed its unpermitted turbines at the Colossus 1 data center after SELC, on behalf of the NAACP, sent a notice of intent to sue under the Clean Air Act. The company obtained permits for its remaining 15 turbines."
[0] https://www.selc.org/news/xai-built-an-illegal-power-plant-t...
Not sure how much it hurts then compared to blocking openclaw though.
[0] https://www.datacenterknowledge.com/regulations/how-are-data...
SpaceX/xAI also has Colossus 2, with double or more the GPUs
Seems xAI will still be around
Certainly an interesting day for xAI.
He literally did a Nazi salute on stage, twice! Check the video, and tell me what you see.
edit: https://giphy.com/gifs/elon-musk-nazi-salute-8W0ItVv7T1kRdwb...
[0] https://wccftech.com/xai-using-just-11-percent-gpus-while-me...
The fine-print-omission appears to be that weekly limits are not doubled. The progressive 5-hour rate limit shrinking was indeed an efficiency blocker that finally convinced me to cancel, but being only able to get 4 full sessions a week as opposed to 8 doesn't compell me to resubscribe.
At this point if feels like if you properly scope your work open weight LLMs are adequate.
xAI has added about 500MW of nvidia gpu capacity in ~April
and will add another 500MW before the end of the year totaling about 2GW.
https://en.wikipedia.org/wiki/Colossus_(supercomputer)#Envir...
Now I have to avoid Claude too.
This is nothing like burning coal.
That’s what virtue signaling is I guess - the action you’re taking is pointless, the only point is to tell everyone you’re taking it therefore feed the narrative forward?
The entire economy runs off gas turbines though this is the thing you boycott?
But more than that, the emissions generated by the Colossus data centers are far worse than typical combined-cycle gas plants or data centers that buy renewable: these turbines emit NOx, fine particulates, carbon monoxide, and formaldehyde into a population-dense area.
I thought people knew about this already. Post from last year: https://simonwillison.net/2025/Jun/12/xai-data-center/
Deciding not to spend money with a company you don't like is not pointless. The point is that you're not participating in something that you judge to be wrong.
The world is full of things I feel are wrong yet have near zero power to stop. That does not mean I should willingly support those things.
Hopefully Elon lets you into his glass bubble when the s** cooks on the fan.
This might be a good time to drop Claude.
Today they say this, then tomorrow they'll silently reduce limits and argue with anyone who calls them on it.
what are we even talking about
My first impression to this post is "what the hell are they thinking?", but actually it seems like a decent move by them.
They basically made it so that normal users can better utilize their plan while not benefitting the backgroundagentmaxxers and stealth openclaw abusers in the ranks of their subscription audience. Making their plan more attractive to the people they actually want to sell to.
Hopefully this leads to a loosening of harness restrictions later.
SpaceX is extremely uniquely positioned to crush the rest of the world combined in order to orbital data centers.
1. GPUs create heat. There's no efficient way to get rid of the heat in space (vacuum is an insulator). 2. Die-shrink makes modern processors and memory more and more susceptible to radiation; shielding is possible, but adds cost + mass (which adds cost)
Sure, as long as your data center is 3x4m - size of a Starlink satellite (think Spinal Tap Stone Henge) . Anything bigger than that (i.e. actual data center sized) is going to require some assembly.
I've heard TeslaBot is good at folding shirts, and serving drinks (at least while teleoperated) - perhaps it can help?
In any case, it appears that Musk can't even generate enough AI demand to utilize his own ground based data center. Maybe he can add "data centers in space" to part of his Mars colonization plan. Maybe have Tesla Bots driving around in Cybertrucks too ?
1. https://wccftech.com/xai-using-just-11-percent-gpus-while-me...
Ok I guess, this was a bit of a hassle, but you're not increasing my weekly allowance, you're just not annoying me as often.
> Second, we’re removing the peak hours limit reduction on Claude Code for Pro and Max accounts.
It wasn't a limit reduction (as in, I didn't have a lower 5-hour limit), it was "tokens are more expensive" and it ate my weekly limits faster. This should never have been instituted to begin with.
> Third, we’re raising our API rate limits considerably for Claude Opus models, as shown in the table below:
Meh.
This is why I don't care for all the "it's a subscription, you're free to not use it!" arguments here. It's not an all-you-can-eat subscription with some generous fair use limits, it's a "X tokens per month for $Y", and they keep lowering the X unilaterally and in secret.
Disgusting. For an allegedly not evil company, they’re very willing to pollute our night skies as well as partner up with a CEO who has been fanning the flames of extremism (particularly the emboldened racists / supremacists of the far right).
CEO that accelerated space industry by 10+ years
CEO that accelerated HCI industry by 10 years
China was doing this regardless. It was a national security issue for them.
so what?
Nobody is 100% evil
Musk helped dismantling USAID which leads to many people’s death.
Which is kind of like the exception that proves the rule hahaha
People haven't been saying "GabeN can do no wrong" for awhile.
But, if you will pardon a little rant: I hate the idea of subscription inference plans and also 'dumping' by subsidizing non-profitable products. Inferencing should be pay as you go and dumping illegal.