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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

#121

Post by sorenjan »

merlindru wrote: post #110
devops000 wrote: post #104

“If we fail to deliver access to the committed amount of GPUs by September 30, 2026, then following a one-month grace period, Google may immediately terminate the agreement or accept the number of GPUs provided, with a corresponding pro rata reduction in the monthly fees. After December 31, 2026, the agreement may be terminated by either party upon 90 days' notice.” https://www.sec.gov/Archives/edgar/data/1181412/000…

why would Google help a competitor like that, though?

Google (Alphabet) owns 6% of SpaceX which they bought for $12B in 2015. They want to maximize the value of their investment.

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

#124

Post by supertroop »

transcriptase wrote: post #119
Signez wrote: post #107

Sorry, what? Does this mean that SpaceX are the only company that really did build some datacenters to put all the million of GPU/TPU/whatever they all talk about everyday? I mean, Google, Amazon, Meta and Microsoft told investors they spent more than $1B per day last year in CapEx... why on Earth do they (well, Google and Anthropic at least) need to rent compute to SpaceX, of all companies?

Yes but someone will be along shortly to defuse what sounds like giving the bad mars man credit where it’s due. Like everything else he does that works out, it was just luck, timing, actually a mistake that worked out, or someone else behind the scenes that he got lucky in hiring at the right time (by accident).

If he’s so smart why isn’t grok using all that capacity?

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

#125

Post by Mistletoe »

devops000 wrote: post #104

“If we fail to deliver access to the committed amount of GPUs by September 30, 2026, then following a one-month grace period, Google may immediately terminate the agreement or accept the number of GPUs provided, with a corresponding pro rata reduction in the monthly fees. After December 31, 2026, the agreement may be terminated by either party upon 90 days' notice.” https://www.sec.gov/Archives/edgar/data/1181412/000…

Feels like these IPOs are thankfully the top coming before the AI crash and we get back to the real world.

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

#126

Post by hirako2000 »

Signez wrote: post #107

Sorry, what? Does this mean that SpaceX are the only company that really did build some datacenters to put all the million of GPU/TPU/whatever they all talk about everyday? I mean, Google, Amazon, Meta and Microsoft told investors they spent more than $1B per day last year in CapEx... why on Earth do they (well, Google and Anthropic at least) need to rent compute to SpaceX, of all companies?

Scarcity. It's becoming difficult to plan for new data centers. They will rent where capacity is available. Grok hasn't gain the expected popularity.

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

#127

Post by sublimefire »

somewhatgoated wrote: post #114
merlindru wrote: post #110

Earlier quoted context omitted.

why would Google help a competitor like that, though?

How is Google competing with SpaceX?

If you look at the IPO filings you’ll see that Spacex as we know it is just a small part of the expected revenue generator. It is supposedly Grok and AI, hence Google competitor.

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

#130

Post by jeltz »

cj wrote: post #103

What exactly is SpaceX's core business?

Their satellite internet business is the only thing which makes them money, which is enabled by their orbital launch business which is as of right now not profitable and I have no idea of if it ever will be but without it they would not be able to launch enough satellites.

Their stupidity with AI and buying X mostly seems to be about scamming investors to make Musk even richer. Like this particular deal is just them doing what CoreWeave does at a SpaceX valuation.

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