Updated
Updated · The New Stack · Jul 18
SpaceXAI Open-Sources Grok Build Under Apache 2.0 as Anthropic Pays $1.25 Billion Monthly for Compute
Updated
Updated · The New Stack · Jul 18

SpaceXAI Open-Sources Grok Build Under Apache 2.0 as Anthropic Pays $1.25 Billion Monthly for Compute

3 articles · Updated · The New Stack · Jul 18

Summary

  • Wednesday’s release made Grok Build—a terminal coding agent competing with Claude Code and Codex—free under an Apache 2.0 license, a move aimed at pressuring rivals on pricing and usage limits.
  • Bloomberg reported Anthropic pays SpaceXAI $1.25 billion a month for compute, part of roughly $2.3 billion in monthly infrastructure deals, letting Musk undercut coding-agent rivals while still profiting from their growth.
  • SpaceXAI had spare capacity to support that strategy: its own models used just 11% of available computing power in April, even as Anthropic reportedly faced a compute crunch.
  • The open-source push also followed a backlash after developers found Grok Build was uploading entire directories to SpaceXAI’s cloud; Musk said the data would be deleted.
  • Code released with the project showed tooling ported from Codex and OpenCode, underscoring how portable the coding-agent layer is even as xAI faces internal turmoil and trust issues.

Insights

Can SpaceXAI's strategy of profiting from rivals backfire if they build their own infrastructure?
After a massive privacy breach, can Grok Build’s free release ever win back developer trust?
With AI boosting code volume but not output, is the coding agent war just an expensive infrastructure race?