[Signez]

Sorry, what?

Does this mean that SpaceX are the only company that really did build some datacenters to put all the million of GPU/TPU/whatever they all talk about everyday?

I mean, Google, Amazon, Meta and Microsoft told investors they spent more than $1B per day last year in CapEx... why on Earth do they (well, Google and Anthropic at least) need to rent compute to SpaceX, of all companies?

[phpnode]

They overbuilt capacity for grok but no one wants to use grok for several reasons

[hirako2000]

Scarcity. It's becoming difficult to plan for new data centers. They will rent where capacity is available. Grok hasn't gain the expected popularity.

[jeltz]

No, CoreWeave for example also rent compute to the big AI companies. This likely just means Grok has few users so they need to rent their extra capacity to their competitors.

[brookst]

Other companies built data centers but also built products that soak up their data center capacity.

xAI built data centers, and products that are mostly good for nonconsensual porn and confirming a small group’s biases. So they have a lot of excess capacity, and might as well rent it to the adults.

[transcriptase]

Yes but someone will be along shortly to defuse what sounds like giving the bad mars man credit where it’s due. Like everything else he does that works out, it was just luck, timing, actually a mistake that worked out, or someone else behind the scenes that he got lucky in hiring at the right time (by accident).

[infinitezest]

People with access to enormous wealth tend to get a lot of chances at the betting table.

[supertroop]

If he’s so smart why isn’t grok using all that capacity?

[transcriptase]

Building excess capacity from the start and selling it for a billion a month to constrained competitors. I only wish I could be so dumb.

[supertroop]

Short memory. When musk was buying all of this capacity it was billed as xai is going to take over the world. Instead grok is a flop and now he has extra capacity. If xai was a data center he’d be smart. But it is a failed Ai venture.

It’s like training your dog not to jump on the sofa. But then you fail to train to stay off and then brag about how you trained it to stay ON the sofa.

[transcriptase]

Source: vibes

[toraway]

Huh? That's just basic history of xAI. At no point was xAI being sold as a Coreweave-like middleman leasing out data centers to hyperscalars. That's a boring, regular business. The pitch was that xAI would develop groundbreaking AI models for Grok which would attract actual users and generate revenue.

That evidently did not work out, otherwise these deals wouldn't be happening. OpenAI and Anthropic aren't leasing out their datacenters, if they did it would be obvious something was grossly wrong with their projected growth.

[jeltz]

If your dad had owned an emerald mine I am sure you could also have been that dumb.

But to be more serious: It is impossible to say if this is good or bad for XAI without more numbers. What if they bought their compute way over market price and sell it at a loss?

[fellowmartian]

Plus it’s not like some absolutely enormous data centers, only 300MW.

[qaq]

None is using grok so they are renting out unused capacity