It’s a repurposing of xAI to be a commodity service provider during a crunch for that commodity. It would be dumb if xAI had any quality or market traction, but they have neither, so it’s actually a rational fallback. But it writes off any high margin future in favor of low margin scale.

And once the compute crunch is over, they’ll have a lot of overprovisioned data centers with no business to soak up the capacity.

Why don’t you have hate for Elon? You can love his companies but hate the man. It’s what I’m doing anyway.