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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

#171

Post by jordanb »

bonsai_spool wrote: post #160
formerly_proven wrote: post #144

Earlier quoted context omitted.

When I hear space I think "that's the perfect location for a data center", since data centers are lightweight, small, require little power, don't need human intervention, have lifetimes measured in decades and don't have to reject heat. Since space easily satisfies these requirements, space is an ideal deployment location for data centers.

Yeah... What am I missing? Like why isn't this just laughed at when it's proposed?

I felt the same way about the "tube with an air hockey table in it." But here I am fifteen years later eating crow as I take the hyperloop to Vegas.

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

#172

Post by Laurel1234 »

jeltz wrote: post #130
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…

I'm pretty sure xAI is just Musk throwing a tantrum after being played for a fool by Lying Sam.

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

#173

Post by jordanb »

readthenotes1 wrote: post #161
H8crilA wrote: post #141

Earlier quoted context omitted.

Why would it ever be more economical to put datacenters in orbit, rather than on some dirt cheap land?

Because dirt cheap land usually does not have dirt, cheap water or dirt cheap electricity.

Water in orbit: famously cheap.

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

#174

Post by amazingamazing »

dwroberts wrote: post #151

Is this admission that google’s proprietary chips etc. are not cutting it? Why would you need a bunch of nvidia GPUs if you have your own silicon? (AFAIK they have their own for both inference and training do they not?)

How do you come to this conclusion? All it means is that spacex has compute and google does not.

Suppose tpus were theoretically a million times better, but cannot be produced due to supply chain constraints, this action would still be rational.

My personal take is that this really shows how bottlenecked the entire supply chain is. For such an important commodity there are shockingly few players ready for scale.

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

#175

Post by YetAnotherNick »

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?

They are not. The amount of conspiracy in high ranked HN comments for AI companies is insane.

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

#176

Post by netdur »

dwroberts wrote: post #151

Is this admission that google’s proprietary chips etc. are not cutting it? Why would you need a bunch of nvidia GPUs if you have your own silicon? (AFAIK they have their own for both inference and training do they not?)

Yes, it is issue of scale, google had to restrict usage because hardware are not available, regardless of what kind of hardware that is

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

#177

Post by ACCount37 »

jeltz wrote: post #130
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…

Launch isn't profitable simply because ongoing Starship R&D is eating into it. A lot of opex, capex, and pre-revenue.

If they start running Starship anywhere near the way they do Falcon 9, it'll flip into profits. A lot of big bets SpaceX made ride on Starship coming online. I'm honestly surprised Starlink is already so profitable without it.

One of their big named bets includes: orbital datacenters. Which puts this specific deal into perspective.

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

#178

Post by throw1234567891 »

dwroberts wrote: post #151

Is this admission that google’s proprietary chips etc. are not cutting it? Why would you need a bunch of nvidia GPUs if you have your own silicon? (AFAIK they have their own for both inference and training do they not?)

It could be, or simply we are so far away into chip shortage that even google needs to buy from other people’s pot.

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

#179

Post by jordanb »

ACCount37 wrote: post #177
jeltz wrote: post #130

Earlier quoted context omitted.

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…

Launch isn't profitable simply because ongoing Starship R&D is eating into it. A lot of opex, capex, and pre-revenue. If they start running Starship anywhere near the way they do Falcon 9, it'll flip into profits. A lot of big bets SpaceX made ride on Starship coming online. I'm honestly surprised Starlink is already so profitable without it. One of their big named bets includes: orbital datacenters. Which puts this…

80% of the space launch business is putting starlink satellites into orbit, so it's all internal funny money. They could very well be letting the space launch business take losses to make the satellite internet business look better (only profitable part of the whole thing).

Wasn't starship supposed to be funded by the NASA contract?

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

#180

Post by ACCount37 »

comboy wrote: post #162

Google renting infra from xAI, I did not see that coming. My understanding of what computers are doing, what companies are doing and what governments are doing seems to be getting worse day by day.

They're struggling.

The future needs more AI compute. No one has enough AI compute.

Memory chip vendors are betting hard on this being a temporary state of affairs that doesn't last, and doesn't warrant commissioning a shitton of new memory foundries.

Musk is betting hard on this staying that way, and is putting the next Colossus into the last place not corrupted by NIMBYs... SPACE!

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