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On June 13, Bloomberg reported that, according to sources familiar with the matter, SpaceX encountered technical challenges while developing and running the Grok AI model at the Colossus 1 data center in Memphis, leading to the decision to lease the entire capacity of the data center to Anthropic. SpaceX originally planned to train AI models through a cluster of three data centers, but network latency issues arose when connecting Colossus 1 with the other two data centers, a problem exacerbated by aging network infrastructure. Additionally, Colossus 1 contained a mix of multiple generations of Nvidia chips, resulting in inconsistent hardware configurations compared to the other data centers, which complicated integration efforts. SpaceX believes that renting out the capacity of Colossus 1 is more economically valuable and can also create new sources of revenue.
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