[amazingamazing]

How do you come to this conclusion? All it means is that spacex has compute and google does not.

Suppose tpus were theoretically a million times better, but cannot be produced due to supply chain constraints, this action would still be rational.

My personal take is that this really shows how bottlenecked the entire supply chain is. For such an important commodity there are shockingly few players ready for scale.

[espadrine]

I see it mean two things:

1. Indeed, Google is compute-constrained, and is ready to buy any it can.

2. xAI (now SpaceXAI) has a lot of idle compute, which it resells to Cursor, Anthropic, Google, probably others as we speak.

In other words: Google is training models, xAI is not.

[trebligdivad]

It's a very long contract (till 2029) for just covering themselves for supply.

[fc417fc802]

3 years is quite a short horizon when it comes to semiconductor fabs. Also this article is a dupe, when it was previously discussed it surfaced that after some time either party can cancel with only 90 days notice.

[infecto]

No its not.

"Both SpaceX and Google have the option to terminate the agreement with 90 days’ notice after December 31, 2026"

[qaq]

They know allocation they have from TSMC for TPUs production they know allocation they have from Nvidia they see demand curve.