[xp84]

Idling? Where do you get your news? He's leased a ton of capacity to everybody else. Makes little difference to Musk whether Grok is using them or someone else is paying him to use them. We all know from AWS's profitability that renting servers to other people is great business. You get a check every month (often from other people's VC money) as opposed to having to figure out how to monetize.

[grim_io]

Reselling raw GPU power means your competitors are able to extract more value out of it than you can.

If that is not a failure for an AI lab, then I don't know what is.

[xp84]

I see it more like McDonald's can't produce burgers fast enough because of a meat shortage, but Burger King has their own supply chain that allows them to supply extra meat. McDonalds now needs to buy patties, possibly at a higher price than they usually pay, from BK just to be able to meet their burger demand.

Is BK in a bad position? They get to run their beef plant at 100% utilization regardless of how good they're doing at marketing hamburgers, and they can use that money to keep improving their hamburger quality or marketing.

[grim_io]

That's a weird analogy and also not fitting at all.

Let's stay in the similar space and talk what it's really about:

Imagine google builds 2 data centers and sells the raw compute(not services!) to AWS so that AWS can sell their service on top.

What an embarrassement that would be.