[chatmasta]

I’m not sure they need novelty or moat. AI compute resources are so scarce that inference providers will buy whatever is available. SpaceX sells inference hardware in bulk, with a proven track record of running inference and training workloads at scale.

[mlyle]

Without a moat, P settles to MC. No one makes significant profit.

[chatmasta]

xAI covers their cost of N-1 datacenter while running their own models in N and building out N+1.

[SecretDreams]

And they make all of their money from the N-1 data center they are renting which is sand moat.

What point are you making?

[chatmasta]

What? They make money from their own inference and models too, which they can train effectively for free by funding their operations with rental income from their last gen datacenter.