Ask HN: take a mediocre internship, or hold out for a great one?

I am an undergraduate CS student and recently received an offer from a well-known, but not well-liked, tech company (company x) for a summer internship. The compensation is not great, nor is the location, nor is the expected internship experience at this company. This is not a place I would want to work full-time after graduation.

Company x needs to know my decision by early next week (3 business days from the offer). However, I am in the interview process with a couple top-tier or near top-tier companies. I have alerted them to my competing offer, but doubt they will be able to make a decision by early next week.

Is risking not having any internship worth the possibility of having a great internship, or do I just go with the mediocre one?