They overbuilt capacity for grok but no one wants to use grok for several reasons
replyScarcity. It's becoming difficult to plan for new data centers. They will rent where capacity is available. Grok hasn't gain the expected popularity.
replyOther companies built data centers but also built products that soak up their data center capacity.
replyxAI built data centers, and products that are mostly good for nonconsensual porn and confirming a small group’s biases. So they have a lot of excess capacity, and might as well rent it to the adults.
None is using grok so they are renting out unused capacity
replyNo, CoreWeave for example also rent compute to the big AI companies. This likely just means Grok has few users so they need to rent their extra capacity to their competitors.
replyYes but someone will be along shortly to defuse what sounds like giving the bad mars man credit where it’s due. Like everything else he does that works out, it was just luck, timing, actually a mistake that worked out, or someone else behind the scenes that he got lucky in hiring at the right time (by accident).
replyPeople with access to enormous wealth tend to get a lot of chances at the betting table.
replyIf he’s so smart why isn’t grok using all that capacity?
replyBuilding excess capacity from the start and selling it for a billion a month to constrained competitors. I only wish I could be so dumb.
replyShort 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.
replyIt’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
replyIf your dad had owned an emerald mine I am sure you could also have been that dumb.
replyBut 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?
Plus it’s not like some absolutely enormous data centers, only 300MW.
reply