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Comment by supertroop | Hacker News Reader

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

Building excess capacity from the start and selling it for a billion a month to constrained competitors. I only wish I could be so dumb.

Short memory. When musk was buying all of this capacity it was billed as xai is going to take over the world. Instead grok is a flop and now he has extra capacity. If xai was a data center he’d be smart. But it is a failed Ai venture.

It’s like training your dog not to jump on the sofa. But then you fail to train to stay off and then brag about how you trained it to stay ON the sofa.

Source: vibes

Huh? That's just basic history of xAI. At no point was xAI being sold as a Coreweave-like middleman leasing out data centers to hyperscalars. That's a boring, regular business. The pitch was that xAI would develop groundbreaking AI models for Grok which would attract actual users and generate revenue.

That evidently did not work out, otherwise these deals wouldn't be happening. OpenAI and Anthropic aren't leasing out their datacenters, if they did it would be obvious something was grossly wrong with their projected growth.

If your dad had owned an emerald mine I am sure you could also have been that dumb.

But to be more serious: It is impossible to say if this is good or bad for XAI without more numbers. What if they bought their compute way over market price and sell it at a loss?

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