6 ms·
Pretty smart for SpaceX though. They’re turning an asset they made for a money-pit (Grok) into probably a major source of revenue ahead of their IPO.
by brokencode 5mo ago
Pretty smart for SpaceX though. They’re turning an asset they made for a money-pit (Grok) into probably a major source of revenue ahead of their IPO.
- 23rf 5mo agoIts not even that. Its better to be involved in the game with a leader/help out a competitor who is competing against someone you don't like and don't want them to win, than to sit it out.
- deleted 4mo ago[deleted]
- giwook 5mo agoThe enemy of my enemy is my friend.
- bombcar 4mo agoMaxim 29: The enemy of my enemy is my enemy's enemy. No more. No less.
- thrownthatway 4mo agoFerengi Rule of Acquisition #76: Every once in a while, declare peace. It confuses the hell out of your enemies.
- a4isms 4mo agoThis is something you say aloud, while muttering "useful idiot" under your breath.
- AntiUSAbah 4mo agoThats just bullshit in this corporate world. If he could fill his Datacenter with Grok use, he would make a lot more money. This is not a good sign at all.
- floatrock 5mo agoWe all remember 2 weeks ago when SpaceX bought $10B of Cursor services. https://news.ycombinator.com/item?id=47855293 https://news.ycombinator.com/item?id=47855293 Since Cursor often relies on Claude models, some of those services will flow back to their own datacenter compute. Especially if there's, lets call it, "customer demand loadbalancing optimization agreements" that makes those Cursor services prioritize Claude models using the app keys that get load-balanced onto the SpaceX datacenter. Did SpaceX just spend $10B to rent out its own datacenter, juicing their recurring revenue metrics with their own AI services investment?
- giwook 5mo agoI don't think it's the conspiracy theory that you're making it out to be. It is publicly known that the vast majority of deals in the AI space are circular in nature without the need for explicitly encoding any of it in a legal contract or even tacit agreements. e.g. Nvidia has invested significantly in many AI companies including both Anthropic and OpenAI which rely heavily on Nvidia's hardware and will undoubtedly use some of said investment towards that end.
- floatrock 5mo agoNvidia and Oracle are already public companies, they're just aiming for their next quarterly statements. SpaceX is getting dressed for their debutante ball and is putting on the makeup to make a grand entrance on the auction floor. Is there a difference? I legitimately have no idea. You are right that we can add another entry to the list of interconnected circular dealmakings. All this ain't gonna end well next time the music stops playing.
- svnt 4mo agoYour argument is that since it is common in a bubble to make circular deals, there is no conspiracy. But you seem to suggest that people committing tens of billions of dollars aren’t looking any further down the pipeline than the name on the receiving bank account? Have you ever been anywhere near a large deal?
- 4mo ago
- BrianGragg 5mo agoI see it more of lets make money off the hardware we are not using anymore. From Elon on X: ... After that, I was ok leasing Colossus 1 to Anthropic, as SpaceXAI had already moved training to Colossus 2. https://x.com/elonmusk/status/2052069691372478511 https://x.com/elonmusk/status/2052069691372478511
- philipwhiuk 4mo agoBut like... most companies are so short of GPUs they'd run it on anything. SpaceXAI not needing the compute is not really a good sign imo.
- scottyah 4mo agoAre you worried about Google too? They're selling compute. Same with Microsoft, and Amazon. As far as I know Anthropic is really the only one that's compute-bound.
- dzhiurgis 4mo ago> As far as I know Anthropic is really the only one that's compute-bound. I use gemini models daily. Jetbrains tells me when they are overloaded and switches to alternative (usually to openai which turns everything to shit). I'd say happens about fortnightly. It's a good litmus and forecaster for AI demand and I wish we had more visibility.
- fhn 4mo ago
- Thrymr 4mo agoSure, if "pretty smart" means overinvest in capital spending on an dirty datacenter powered by unpermitted gas generators that you don't even need anymore because of lack of demand for your product, so you lease it to a competitor (presumably at a huge loss). I am not sure that "major source of revenue" as a datacenter provider is the kind of growth opportunity that IPO investors are looking for.
- deleted 4mo ago[deleted]
- hx8 4mo ago> presumably at a huge loss Why do you say that? I was under the impression that everyone in the datacenter business was printing money.
- XorNot 4mo agoOracle certainly isn't.
- signatoremo 4mo agoSays who? Oracle spends a lot of money to get ready for AI customers like OpenAI. They aren't there yet. They can't lose money serving what they don't have.
- cavisne 4mo agoDefinitely not going to be leasing it at a loss. GPU's are sold out, Anthropic will be paying a significant premium.
- AntiUSAbah 4mo agoAnthropic doesn't has that much pressure to pay while Musk has an IPO coming up and he wants to cleanup his numbers. Its also not a good sign because he should be able to leverage Grok, his billion dollar investment, instead of renting it out to Anthropic. But hey what does it matter to investor? if the IPO explodes, it is clear that people either can't read, don't care or don't understand.
- ur-whale 4mo ago[dead]
- ur-whale 4mo ago[dead]
- runako 4mo agoThe financials for a Musk company do not, and will not, affect investor sentiment in the slightest. Investors in the SpaceX IPO are buying a call option on Musk.
- AntiUSAbah 4mo agoThe weird thing is, that the IPO might still work out for him and save his ass again. At least he doesn't come across as a happy person... While i'm really curious though when someone might hit him back after all the garbage he did and still does