Google to pay SpaceX $920M a month for compute capacity at xAI data centers
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Re: Google to pay SpaceX $920M a month for compute capacity at xAI data centers
#2Is this another circular investment to help pump up the stock valuation? Why would Google need to rent that much compute?
> Google parent Alphabet has made a windfall from backing SpaceX, which was worth $12 billion at the time of its 2015 investment, and is looking to go public at a valuation of over $1.75 trillion
Re: Google to pay SpaceX $920M a month for compute capacity at xAI data centers
#3> SpaceX said in the filing that if it fails to “deliver access to the committed amount of GPUs by September 30, 2026,” Google can immediately end the agreement, or accept the number of GPUs provided at a reduced fee after a one-month grace period.
> After this year, the agreement can be terminated by either party provided they give 90 days’ notice.
Circular financing at its peak for the IPO. There has to be some regulatory body to not allow such shady things
Re: Google to pay SpaceX $920M a month for compute capacity at xAI data centers
#4I thought it was notable that in Google's press release yesterday regarding their new facilities near Amarillo they seemed to go out of their way to point out that the applications are not AI, listing "Search, Gmail, Maps, Cloud, online banking, and 911 systems" instead. I wonder if they find it more convenient to rent an existing one rather than face public scrutiny for building another "AI data center".
Re: Google to pay SpaceX $920M a month for compute capacity at xAI data centers
#5Related / same story from different source (Bloomberg), submitted earlier: https://news.ycombinator.com/item?id=48416941
Re: Google to pay SpaceX $920M a month for compute capacity at xAI data centers
#6> SpaceX said in the filing that if it fails to “deliver access to the committed amount of GPUs by September 30, 2026,” Google can immediately end the agreement, or accept the number of GPUs provided at a reduced fee after a one-month grace period. > After this year, the agreement can be terminated by either party provided they give 90 days’ notice. Circular financing at its peak for the IPO. There has to be some reg…
> Circular financing
Circular financing would require SpaceX to buy a similar quantity of stuff from Google. (Or invest in Google.) We have no evidence of that. Instead this looks like Google taking advantage of SpaceX’s desire to print revenue today versus a month from now.
(If the agreement is terminated with no exchange of goods, it might be market manipulation. But still not circular financing.)
Re: Google to pay SpaceX $920M a month for compute capacity at xAI data centers
#7How did Elon get so much NVIDIA hardware before everyone else?
Re: Google to pay SpaceX $920M a month for compute capacity at xAI data centers
#8Another way to read this is, "Twitter's AI dept. has been doing so badly they don't have a use for billions of dollars of hardware they bought."
Re: Google to pay SpaceX $920M a month for compute capacity at xAI data centers
#9How did Elon get so much NVIDIA hardware before everyone else?
I've heard the harder part is to have data centers to put the nvidia hardware than getting the hardware currently.
Re: Google to pay SpaceX $920M a month for compute capacity at xAI data centers
#10> SpaceX said in the filing that if it fails to “deliver access to the committed amount of GPUs by September 30, 2026,” Google can immediately end the agreement, or accept the number of GPUs provided at a reduced fee after a one-month grace period. > After this year, the agreement can be terminated by either party provided they give 90 days’ notice. Circular financing at its peak for the IPO. There has to be some reg…
> Circular financing
Keep in mind, Google has a 6% stake in SpaceX, so this is more like exchanging millions to gain billions.