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by hparadiz 13 days ago
It's quite simple. xAI bought a shit ton of GPUs for Grok thinking they would be competitive. When that didn't pan out they found themselves with either giving away Grok for mostly free or renting out the capacity to someone else for a shit ton of money. They chose a shit ton of money.
1 comments

Right; and Google chose to sign that contract the week of the IPO to preserve their share values, the contract allows them to bail after 90 days