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SpaceX reportedly rented out Colossus 1 AI data center after it ran into latency issues.

While SpaceX plans satellite-based AI servers, Bloomberg reports it ran into trouble trying to develop and run Grok AI in Memphis, citing unnamed sources. They claim that deals renting capacity to Anthropic ($15 billion annually) and Google ($920 million per month) happened following hardware variation and lag issues:

SpaceX reportedly rented out Colossus 1 AI data center after it ran into latency issues.

TL;DR

  • SpaceX encountered latency issues attempting to develop and run Grok AI in Memphis.
  • The company planned to use a cluster of three data center campuses for its AI models.
  • Latency problems arose when connecting Colossus 1 with sites over 10 miles away.
  • Aging network infrastructure compounded the connectivity issues.
  • Deals to rent data center capacity to Anthropic and Google reportedly followed these issues.