Anthropic renting out the data center Elon built for Grok is the kind of plot twist you can't make up.
Every once in a while, declare peace. It confuses the hell out of your enemies.
If he could fill his Datacenter with Grok use, he would make a lot more money.
This is not a good sign at all.
Since Cursor often relies on Claude models, some of those services will flow back to their own datacenter compute. Especially if there's, lets call it, "customer demand loadbalancing optimization agreements" that makes those Cursor services prioritize Claude models using the app keys that get load-balanced onto the SpaceX datacenter.
Did SpaceX just spend $10B to rent out its own datacenter, juicing their recurring revenue metrics with their own AI services investment?
It is publicly known that the vast majority of deals in the AI space are circular in nature without the need for explicitly encoding any of it in a legal contract or even tacit agreements.
e.g. Nvidia has invested significantly in many AI companies including both Anthropic and OpenAI which rely heavily on Nvidia's hardware and will undoubtedly use some of said investment towards that end.
SpaceX is getting dressed for their debutante ball and is putting on the makeup to make a grand entrance on the auction floor.
Is there a difference? I legitimately have no idea. You are right that we can add another entry to the list of interconnected circular dealmakings. All this ain't gonna end well next time the music stops playing.
My point was that there is a lot of this happening, it is not a unique statement nor is it surprising to see at this point.
I made no attempt to dismiss or justify any of it.
> I don't think it's the conspiracy theory that you're making it out to be.
Which is it then?
Companies appear to be spending endless billions on AI but ultimately it's a huge wank.
From Elon on X: ... After that, I was ok leasing Colossus 1 to Anthropic, as SpaceXAI had already moved training to Colossus 2.
I use gemini models daily. Jetbrains tells me when they are overloaded and switches to alternative (usually to openai which turns everything to shit). I'd say happens about fortnightly.
It's a good litmus and forecaster for AI demand and I wish we had more visibility.
I am worried about Google and Microsoft, yes.
Why do you say that? I was under the impression that everyone in the datacenter business was printing money.
Its also not a good sign because he should be able to leverage Grok, his billion dollar investment, instead of renting it out to Anthropic. But hey what does it matter to investor? if the IPO explodes, it is clear that people either can't read, don't care or don't understand.
Investors in the SpaceX IPO are buying a call option on Musk.
At least he doesn't come across as a happy person...
While i'm really curious though when someone might hit him back after all the garbage he did and still does
Then you've got SpaceX buying 1200 cybertrucks from Tesla, so it's serving as failure laundering vehicle for all his endeavors.
Which would be fine to me if Tesla wasn't a publicly traded company and SpaceX wasn't about to IPO. Whereas juicing companies in a way that affects the open stock market feels very inappropriate.
And now SpaceX investors are going to be left as the bag holders for X.ai/Twitter.
Overall though, to classify the work he's done and the impact on the world as unsuccessful is just insane. It's almost always from someone who hasn't even managed to lead a team of 10 through one project too.
But he also plays in areas were market disruption can't be done by many people at all.
But look Tesla: He did the cybertruck debakel. He tanked Tesla as a brand, he is burning money on xAI and Twitter, he destroyed a beloved brand Twitter. He did the boring company garbage.
The only thing this shows is some kind of masterclass between manipulation, public ignorance, luck, economy of high invest high risk and risk adverse industries.
Starlink doesn't scale very well which is a low margin business, especially when Amazon and the others are joining the club.
xAI is just a loss.
Twitter probably still a loss.
Tesla made a lot of money with co2 certificates. And a market were people were quite ignorant for a long.
Space-X he wants to push that to the death, without a real endplan. He now talks about Mars and Datacenter in space like there is any real business up their.
Anthropic gets the compute they so desperately need to keep growing. Elon rents out compute that xAI couldn't make use of due to little demand for Grok. SpaceX gets revenue on the books for IPO.
PS. I want to translate this part:
We’re very intentional about where we’ll add capacity—partnering with democratic countries whose legal and regulatory frameworks support investments of this scale
We're putting profits above anything else. Yes, Elon is a far right guy who supported Trump, a president who isn't very democratic, but we're just really desperate for more money. We're also trying to make you forget that xAI is funded by Middle East non-democratic governments. Heck, we'll even buy compute from China if we can sell Anthropic models there.Considering that Anthropic mass-bans Chinese users accounts based on using VPN (used to circumvent the Chinese firewall) and then demands an ID or a residence permit of a country where Claude officially works to ensure that the user doesn't live in China, seems unlikely.
China can get plenty of value from Claude without needing to use it for anything similar.
They very specifically avoided a trap where the next time the US blows up a school full of children they were very obviously going to blame Claude for it.
https://www.wsj.com/tech/ai/anthropic-ai-defense-department-...
What's the problem here exactly? Are you insinuating any non-democratic government is bad and evil and only democratic governments are the correct and right way to govern? sort of like: "there is only one true prophet, and it's the one I follow, and all the others are false!"
My point is that Anthropic cares a lot about "democracy" but will buy compute from a data center mostly funded by non-democratic nations.
America could do so much to compel the world to work in from a human rights perspective rather than petrodollars. I can't imagine any serious person would say the average American benefits from US imperialism. All US politicians did was traded away were secure middle class lifestyle for cheaper widgets, hardly anything worth caring about.
Who benefits from American petrodollar policies? Not Americans, all the wealth gets extracted to the elites while civilians suffer from the imperial blowback/boomerang.
Look at what the new deal coalition brought in and they nearly burnt out enough to allow neoliberalism to flourish during their fall. What do we have in return? No universal healthcare, no universal childcare, a broken welfare system, increasing income inequality, losing the ability to make a better life.
But assuming there are people that care, if a government doesn't derive its right to govern from the will of the people it governs, under what definitions can it be considered legitimate? Divine right of kings?
The ones run by people who chop up journalists certainly are.