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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

#61
post #56

So space data centers are absolutely possible then. I heard a lot of skepticism about the feasibility but it looks like Google and Anthropic looked at SpaceX and trusted them to deliver on the promise and even signed deals worth billions.

They are paying for the existing earth-bound data centers SpaceXai owns.

Oh wow did not realize xai has data centers. So are they completely abandoning xai or do they just have that much capacity left over?

Re: Google to pay SpaceX $920M a month for compute capacity at xAI data centers

#62

Which means more Grok degradation, more severe throttling, etc. I can't understand why xAI charges 50% more per month for Grok over competitors when it doesn't even gracefully downgrade to a cheaper model when paid subscribers hit the limit.

Who uses Grok? Not even SpaceX engineers that is known...

Grok is pretty good. It really excels when the results can be improved by deep online search. It tends to be more aggressive in looking things up than competitors. I use it in certain situations.

Re: Google to pay SpaceX $920M a month for compute capacity at xAI data centers

#63
post #7

How did Elon get so much NVIDIA hardware before everyone else?

> How did Elon get so much NVIDIA hardware before everyone else? He’s the richest man on the planet and doesn’t have a track record of not paying for shit he buys. If you want to reliably offload your chips, he’s safer than e.g. OpenAI who might or might not have the money when the bill comes due.

> doesn’t have a track record of not paying for shit he buys

You mean like the time he committed to buying Twitter and then tried to back out of a legally binding contractual agreement to finalize the deal?

Re: Google to pay SpaceX $920M a month for compute capacity at xAI data centers

#64

Earlier quoted context omitted.

The downfall of Twitter is one of the most spectacular self inflicted business failures I have ever witnessed. Amazing to think it was once so ingrained in mainstream society.

What metrics are you using to classify it as a downfall?

Reddit has more monthly active users than twitter and reddit isn't really culturally relevant at all (neither is twitter either IMO).

Re: Google to pay SpaceX $920M a month for compute capacity at xAI data centers

#65
post #28

Earlier quoted context omitted.

It's circular since Google owns part of SpaceX. According to [1] they own 7% of SpaceX, so a $1.75T IPO would value their stake at $120B. The target IPO price is >90x revenue, so if Google increases SpaceX's revenue by $11B, SpaceX's valuation could increase by $990B to maintain the same multiple, which would increase the value of Google's stake by $69B. 1: https://finance.yahoo.com/markets/stocks/articles/alphabet-s…

Their exposure is more than just their ownership of SpaceX. If the SpaceX IPO bombs (or even merely underperforms), the expectations for the Anthropic/OpenAI IPOs collapse, and with that, everything else AI. AI companies can't afford to let any AI company go down.

I'm not sure this is true for Google. Ignoring their equity in Anthropic, AI is generally a threat to Google, since it's the closest thing to upsetting their search monopoly. The best case for Google is if OpenAI and Anthropic are way out over their skis, and Google is the only major player left with their sturdier financial position. The worst case is if ChatGPT/Claude completely displace search and nobody wants to pay for gemini. I find it unlikely that all three go down for the same reason.

Re: Google to pay SpaceX $920M a month for compute capacity at xAI data centers

#66
post #50
post #39

google: we are commited to carbon free data centers by 2030 ( https://sustainability.google/reports/247-carbon-free-energy... ) also google: renting capacity from a data center powered by 27 methane gas turbines on trailers https://www.epw.senate.gov/public/index.cfm/2026/4/whitehous...

The deal ends in June 2029, which is before 2030.

They also might switch power sources.

Re: Google to pay SpaceX $920M a month for compute capacity at xAI data centers

#67
post #46

Earlier quoted context omitted.

I've used/use it. For a while it had one of the best lightweight coding LLM's, which actually lead to a #1 spot on openrouter usage ranking although they've fallen off the top 10 used now. It's also provided some good reasoning models, which perform better when dealing with non-PC topics. Also, although I've never used it for this, I believe some of the paid models produce some of the best "adult" content, and I know…

[flagged]

Without giving too many details I thought it would be fun to make 2D games based off of banned books (sort of as a marketing ploy, paradoxically everybody likes banned books). Camp of the saints seemed like a good target, which is a fictional book based in 1980's France dealing with incoming flotillas of immigration. I found that ChatGPT would push back on the premise of the novel instead of coding, while grok models just called things "edgy" and went to work.

I have more examples (mostly dealing with realtime web filtering) but that's the immediate one that comes to mind.

Re: Google to pay SpaceX $920M a month for compute capacity at xAI data centers

#68

Earlier quoted context omitted.

> Alphabet has made a windfall from backing SpaceX. Musk’s company was worth $12 billion at the time of Google’s 2015 investment How come its not a circular deal where google is investing little bit more money to make a whole lot more money

that's not circular though

It’s only circular if it violates my narrative, of course.

Re: Google to pay SpaceX $920M a month for compute capacity at xAI data centers

#69

Space-X is an AI/datacenter company that also makes rockets

And cars, and 18-wheelers, and satellite internet, and home/commercial battery backups, and (formerly) solar roof tiles

That is Tesla.

Re: Google to pay SpaceX $920M a month for compute capacity at xAI data centers

#70

Do people think those numbers are correct? 920 million a month for 110,000 GPUs is $11.61 per GPU hour. That seems very high to me.

The contract has some clauses that lets Google pay less if SpaceX can't deliver the full amount of GPUs.

But $12/hr is probably quite accurate. SpaceX' datacenters are horrifyingly expensive, and regular GPUs are being rented below cost in many cases.

Just the gas turbine power alone is horrific. Doubles or triples the power bill and adds a big chunk of depreciation.

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