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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
#92With ~$2.1B/month of GPU rental revenue, is xAI now profitable? Are all divisions of SpaceX now profitable?
Yes they should be profitable. If SpaceX maintains profitability for 12 months, they are eligible for SP 500 index inclusion, even under the old rules Elon is pulling financial engineering black magic to make this happen.
More like incredibly lucky that the global hardware market dried up for compute capacity even as his AI product flopped. Right place at the right time.
I just dislike that it is now harder to avoid giving Musk money directly or indirectly.
Re: Google to pay SpaceX $920M a month for compute capacity at xAI data centers
#93Earlier quoted context omitted.
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.
It’s exceptionally fast at it too. I love using it for looking up things where recency matters.
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Re: Google to pay SpaceX $920M a month for compute capacity at xAI data centers
#94Wait, are these the same GPUs that were diverted from Tesla into xAI a couple of years ago?
Re: Google to pay SpaceX $920M a month for compute capacity at xAI data centers
#95Earlier quoted context omitted.
Who uses Grok? Not even SpaceX engineers that is known...
Grok is the best for researching recent events and real-time information. All the other AIs have a learning date cut-off too far in the past. Claude accuses me of hallucinating events that happened the day before, and it's quite annoying.
Gemini, Claude, and ChatGPT all offer web search integrations in order to get recent data.
Grok 3 and Grok 4 have a 2024 knowledge cutoff. https://docs.x.ai/developers/models
Re: Google to pay SpaceX $920M a month for compute capacity at xAI data centers
#96I 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".
I wonder if they are more than happy to let someone else take on the burden of the massive writedowns that are bound to hit in a couple of years.
Burden in terms of tax implications, or in terms of the investment possibly not being profitable?
Re: Google to pay SpaceX $920M a month for compute capacity at xAI data centers
#97Earlier quoted context omitted.
Grok is the best for researching recent events and real-time information. All the other AIs have a learning date cut-off too far in the past. Claude accuses me of hallucinating events that happened the day before, and it's quite annoying.
Gemini, Claude, and ChatGPT all offer web search integrations in order to get recent data. Grok 3 and Grok 4 have a 2024 knowledge cutoff. https://docs.x.ai/developers/models
Grok has access to the X firehouse, and gives context on realtime events much better than the models you listed.
I wish Meta made their own AI/search model because they probably have the best data source.
Re: Google to pay SpaceX $920M a month for compute capacity at xAI data centers
#98Earlier 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?
Impact in the zeitgeist. Twitter was everywhere. Regularly referenced on live news television statins. Was considered a major news source. Shows had segments dedicated to it. Everyone and every brand had a Twitter. That is not the case today. Not by a long shot.
Re: Google to pay SpaceX $920M a month for compute capacity at xAI data centers
#99How 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"
Hahaaha. A solid admission of being clueless.
Elon has a strong track record of doing shady stuff to get out of deals.
Re: Google to pay SpaceX $920M a month for compute capacity at xAI data centers
#100> 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.)
Google is paying $12.00 per gpu-hour which costs SpaceX $1.50-$3.50.
Who's taking advantage of who?