Musk Hands xAI Compute to Anthropic; TSMC Stock Up 150% Warns AI Slowdown
GOOG•On May 6 Elon Musk dissolved xAI’s independence and transferred most of his AI compute capacity to Anthropic, strengthening the rival’s infrastructure three years after launch. An accompanying analysis flags Taiwan Semiconductor’s 150% stock surge, 40.6% Q1 revenue growth and 35x P/E, warning that slower hyperscaler AI spending poses downside risk.
1. Musk’s xAI Exit and Anthropic Boost
On May 6 Elon Musk announced xAI would no longer operate independently, reallocating the majority of his AI compute resources to Anthropic. This move comes three years after Anthropic’s founding and instantly increases its access to high-performance infrastructure formerly reserved for Musk’s own models.
2. TSMC’s AI Demand and Stock Strength
Taiwan Semiconductor’s shares have climbed nearly 150% over the past year, driven by hyperscaler AI capex. In Q1 the company reported 40.6% revenue growth and raised full-year guidance, but its 35x forward P/E rating leaves exposure to any reduction in hyperscaler spending.
