While suing OpenAI, Musk rents out 220,000 GPUs to Anthropic. The AI race's thirst for computing power is crushing all stance boundaries.
1｜Anthropic Leases Musk's 220,000 GPUs, Computing Power Thirst Overwhelms Camp Logic
Anthropic signs a deal with SpaceX to access all the computing power of the Colossus 1 data center in Memphis, Tennessee, exceeding 300 megawatts, over 220,000 GPUs (including H100, H200, and GB200). Anthropic CEO Amodei announces an immediate doubling of the Claude Code usage limit at the Code with Claude developer conference. The agreement also includes an "interest expression" for space-based computing, exploring the deployment of gigawatt-level AI computing power in orbit.
The irony lies in the timeline. Musk's xAI built Colossus, while Musk himself is suing OpenAI for mission betrayal in court. Now his infrastructure is serving Anthropic, seen as OpenAI's most direct competitor. With SpaceX's IPO on the horizon needing customer validation of its data center assets' value, Anthropic opens another computing power pipeline beyond Google Cloud's $200 billion long-term contract. Business logic overrides narrative consistency.
(Source: xAI / Bloomberg / CNBC / Wired / Ars Technica)
2｜Mullati Testifies Altman Lied to Bypass Security Review, OpenAI Trust System Falls Apart in Court
Former OpenAI CTO Mullati testifies via video in the Musk v. Altman case. She confirms Altman had told her that the legal department had cleared a new model without the need for a deployment security committee review. Upon her verification, she found this to be untrue. When asked if "Altman was telling the truth," Mullati answered "no."
She also described Altman as "saying completely opposite things to different people," stirring up discord among executives and undermining her authority as the tech lead. This is the first time an issue of trust at the OpenAI executive level has been publicly addressed in sworn testimony. Previously, Brockman also testified in court that Musk had supported OpenAI's for-profit transformation but demanded full control. Both testimonies point to the same fact that, in the AI lab's power structure, the actual enforcement of security measures depends on the CEO's personal choices.
(Source: Reuters / The Verge / US News / The Information)
3｜NVIDIA $3.2 Billion Bet on Corning Fiber, Ending the Copper Era for AI Data Centers
NVIDIA acquires a $500 million stake in Corning with the option to invest an additional $2.7 billion, totaling $3.2 billion. In return, Corning will build three new fiber optic plants in North Carolina and Texas, creating 3000 jobs and increasing U.S. fiber manufacturing capacity tenfold. The goal is to replace copper cables inside AI racks with fiber optics, known as a co-packaged optics solution.
Photonics consume 5 to 20 times less power than electronics, becoming a critical constraint as GPU cluster sizes head towards a million cards. On the same day, Hut 8 signed a $10 billion AI data center lease in Texas. The race for computational power has expanded from the chips themselves to the physical medium connecting the chips, with fiber optics emerging as the next supply chain bottleneck. Corning's stock price surged nearly 18% in a single day.
(Source: Corning / NVIDIA / CNBC / Tom's Hardware / Reuters)
4｜Crypto Regulation Accelerates, White House Aims for July 4th Passage of Clarity Act, Wall Street Enters Trading
White House Digital Asset Advisor Vance stated the government's aim to have the House pass the Clarity Act (Cryptocurrency Market Clarity Act) by July 4th, with the Senate Banking Committee marking it up this month and sending it to the full Senate in June. However, Senator Gillesbrand signaled resistance, citing the lack of ethical provisions addressing officials' conflicts of interest with the crypto industry, stating, "No one will vote in favor." This provision directly targets Trump's memecoin and World Liberty interests.
The market is no longer waiting for legislation. Morgan Stanley's E*Trade has launched a pilot for crypto trading with fees lower than JPMorgan Wealth, set to open to all customers later this year. The Nasdaq CEO stated that the SEC's new stance is helping to reshape the market. While lawmakers are playing the ethics threshold game, Wall Street is racing ahead to pave the way. Whether these two timelines will converge depends on the congressional summer window.
(Source: CoinDesk / CNBC / Congress.gov / Bankless)
5｜AI Agent Ecosystem Shake-up, Google Abandons Mariner, Snap Splits from Perplexity, OpenAI Releases Low-Level Protocol
Google shut down Project Mariner on May 4th, an experiment with a browser-based proxy that lasted only 17 months. Its technology has been integrated into Gemini Agent. The official reason was that the "technology has moved to other products," but the actual background is that the Claude Code and OpenClaw-style proxies have grabbed market attention.
On the same day, Snap confirmed the "amicable termination" of its $400 million AI search partnership with Perplexity. The integration was expected to bring $324 million in revenue by 2026, but is now back to zero. Perplexity stated that it was "not a good fit for both parties." Snap also announced a 16% workforce reduction due to monthly losses of $20 to $25 million in ad revenue from the Iran War.
On the other end, OpenAI, in collaboration with AMD, Intel, NVIDIA, Microsoft, and Broadcom, released the MRC Open Networking Protocol to address GPU idle issues in ultra-large-scale training clusters. It has been deployed on all of OpenAI's cutting-edge training supercomputers. While participants at the agent level are exiting, participants at the infrastructure level are digging deeper.
(Source: The Verge / TechCrunch / OpenAI / CNBC / Wired)
Also Worth Knowing ↓
Scale AI secured a $500 million contract with the Pentagon to develop the Air Force's "Survivable Airborne Operations Center" AI agent. This is a fivefold expansion of last year's $100 million contract. Meta holds a 49% stake in Scale AI, bridging the gap between the social media giant and military AI through a single layer of equity relationship.
(Source: Bloomberg / CNBC)
TSMC signed a 30-year offshore wind power agreement to secure over 1 gigawatt of clean energy. The partner is Canadian Northland Power's Hai Long project. AI chip manufacturers are seeking a way out under Taiwan's energy crisis pressure. TSMC's record profits are synchronously amplified with Taiwan's power shortfall.
(Source: Ars Technica / Northland Power)
Microsoft is considering abandoning key energy commitments to accommodate data center expansion. Bloomberg reported that internally, it is evaluating a reduction in renewable energy targets. On the same day, TechCrunch reported a "collision" between Microsoft's data center and clean energy goals, with computing power requirements overwhelming the ESG narrative.
(Source: Bloomberg / TechCrunch)
Robinhood's VC Fund IPO attracted over 150,000 retail investors. CEO Tenev stated that the fund allows retail investors to gain exposure to pre-IPOs of OpenAI, Stripe, Databricks, and Oura. Retail capital is systematically flowing into private equity-level projects for the first time.
(Source: TechCrunch)
The Solana Foundation partners with Google Cloud to enable AI agents to pay for API calls with stablecoins. Enterprise-grade API discovery, access, and payments are all autonomously handled by the AI agents. The payment rails for the agent economy are taking shape. (Source: Finextra / Solana Foundation)
Hugging Face launches a robot app store, where the $299 open-source robot Reachy Mini already has 200+ apps. The app store logic extends from mobile to physical robots. (Source: VentureBeat)
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