Elon Musk praises Mythos/Fable, promises not to ‘cut off’ Anthropic

2026-07-09 · Source: AI News & Artificial Intelligence | TechCrunch · Field: Technology & Digital — Artificial Intelligence & Machine Learning, Emerging Technologies & Innovation · Depth: Fundamental Awareness, short

Summary

Elon Musk has publicly reversed his previous negative stance on Anthropic, praising its Mythos/Fable models as industry leaders and assuring he would not "cut off" the AI lab despite past rivalry. This comes after Anthropic signed a significant deal in May 2026 to purchase 300 megawatts of compute from xAI's Colossus 1 data center, a unit of SpaceX. The agreement is valued at \$1.25 billion per month through May 2029, totaling approximately \$40 billion in revenue for SpaceX. Google also secured a similar deal for \$920 million monthly through June 2029. Musk cited Tesla's patent pledge and Supercharger network, along with SpaceX's satellite launch policies, as proof of his non-competitive "style." While contractual safeguards exist, the partnership could offer SpaceX increased visibility into Anthropic's operations, raising questions about potential "AI distilling" risks.

Key takeaway

For AI/ML Directors evaluating compute infrastructure partnerships, this case highlights the dual nature of strategic alliances. You must scrutinize contractual terms to protect against competitive risks like "AI distilling" while recognizing the mutual benefits of such large-scale deals. Your due diligence should extend beyond financial terms to assess potential visibility into your operations and the long-term strategic implications of deep vendor relationships, even with former rivals.

Key insights

Despite past rivalry, Anthropic's massive compute deal with SpaceX highlights the complex, interdependent nature of AI infrastructure and competition.

Principles

• "AI distilling" is a recognized competitive tactic.
• Large compute deals foster complex interdependencies.

In practice

• Evaluate contractual safeguards for critical infrastructure.
• Monitor for "AI distilling" tactics from partners.

Topics

• AI Compute Infrastructure
• Anthropic
• SpaceX xAI
• AI Model Distillation
• Cloud Partnerships
• LLM Development

Best for: CTO, VP of Engineering/Data, Executive, Director of AI/ML, Investor, Tech Journalist

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Editorial summary, takeaway, and curation by AIssential. Original article published by AI News & Artificial Intelligence | TechCrunch.