At scale, the savings of slightly cheaper hardware is often dwarfed by supply chain management costs, both direct and indirect. How much is it worth to your business to get the hardware deployed six weeks sooner and/or with a high probability of timely delivery? I imagine xAI wanted to move with maximum speed.

This is a big part of the decision process. North American supply chains are slightly more expensive but also fast and responsive. The advantage of someone like Dell is also that they can do almost everything in-house, which avoids the overhead (to the business) of coordinating integration of components manufactured in Taiwan, the US, etc into the final build. I’ve done it both ways. There are real tradeoffs so context matters.

I am pretty sure that at scale, the savings is so great that this is when you will tolerate a worse experience for cheaper gear. Hence Google and Facebook pinching pennies.

The advantage of buying Dell (or IBM) is that if you aren't buying enough computers to have your own dedicated people, you get someone to take care of you. Dell may be able to get you stuff faster, but the Taiwanese shops are also very good at having an agile supply chain.