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I have read the Google deal makes xAI profitable. In the short term, anyway.

xAI failed to produce a frontier model. They got involved into nudifying and other questionable activities as well. People started leaving in droves: https://www.nbcnews.com/tech/elon-musk/xai-musk-addresses-wa...

xAI is a failed company, as is X. Their merger into SpaceX is basically a scam. Elon Musk justified this by saying he is going to send xAI servers into space using SpaceX. This is an unproven idea, not ready for investing.

What I was trying to point out is xAI has a lot of data center capacity and is making bank renting it to other companies.

Sure, but renting out data center capacity is not that lucrative. You get 15% markup that's all.

15% of a billion dollars is a lot of money.

It is low-margin business, does not explain their 1.8T valuation.

That may be true, but it's the farthest thing from a "failed company", even if you assume Grok never gains a market foothold. I don't know why you would assume that, though.

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