{
  "id": 14093715,
  "title": "Silicon Valley’s “huge shortage”: Amodei calls Wang, Musk partners with a rival",
  "url": "https://urgent.news/2026/10/13/silicon-valleys-huge-shortage-amodei-calls-wang-musk-partners-with-a",
  "topic": "ai",
  "section": "AI",
  "published": "2026-10-13T00:54:27.000Z",
  "source": {
    "name": "Times of India",
    "slug": "times-of-india",
    "url": "https://timesofindia.indiatimes.com/technology/tech-news/silicon-valley-is-facing-a-huge-shortage-that-has-made-dario-amodei-make-telephone-call-to-alexandr-wang-demis-hassabis-upset-and-elon-musk-partner-with-the-company-he-openly-trashed-days-before/articleshow/134905547.cms"
  },
  "original_language": "en",
  "account": "A report by The Wall Street Journal reveals a global shortage of raw computing power is transforming the tech industry, creating intense corporate rivalries and forging unlikely alliances between competitors. The scarcity has become the central battleground for tech giants, reshaping executive decision-making and threatening the growth of startups unable to secure enough chips.\n\nGoogle's struggle for computing resources is highlighted in the report, with the company spending $2.7 billion in 2024 to rehire researcher Noam Shazeer to lead key projects like its Gemini models. Despite this investment, Google was unable to guarantee Shazeer the computing capacity he needed. Shazeer ultimately left Google for OpenAI due to internal reallocations prioritizing other initiatives over his projects.\n\nThe sheer competition for computing resources extends beyond Google. According to CNBC, Google is investing more than any other company in data centers, chips, and related infrastructure, but capacity remains scarce. Every Tensor Processing Unit (TPU) assigned to training a model, serving a Google product, or fulfilling a cloud customer contract represents a choice among competing priorities.\n\nThe scramble for computing power has even driven competitors to form surprising alliances. Anthropic and Elon Musk's xAI are among those forging partnerships. When Anthropic faced severe infrastructure strain and outages due to the popularity of its Claude Code assistant, it reached out to xAI's offices in Hawthorne, California, to lease computing power directly from Musk's venture. This deal, valued at up to $45 billion, brought together the ideological divide between Anthropic CEO Dario Amodei and Musk.\n\nDario Amodei also reportedly contacted Meta's chief AI officer Alexandr Wang to try and secure additional computing capacity. Meta initially debated whether to grant Anthropic excess capacity but ultimately decided against it for now. The report reveals a frantic gold rush in the tech sector as intermediaries like San Francisco Compute scour unconventional sites worldwide to locate usable clusters and servers running in unusual locations like a converted chicken coop in rural America or navigating monsoon floods in Manila to source hardware in Taipei.",
  "summary": "Tech giants and startups face an unprecedented shortage of computing power, causing internal strife over resources, particularly within Google and its competitors. Collaborative efforts have sprung up, such as the partnership between Anthropic and Elon Musk's xAI, aiming to enhance computing capabilities. As the quest for computational resources intensifies, the rental costs of advanced…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}