They are paying for the existing earth-bound data centers SpaceXai owns.

Oh wow did not realize xai has data centers. So are they completely abandoning xai or do they just have that much capacity left over?

	▲	etc-hosts 17 hours ago \| parent [-]
		They have unused capacity in their Tennessee datacenter. We don't know everything but the backend of Grok probably runs in the TN datacenter. Grok is not as popular as hoped, so the TN datacenter has unused capacity. There are other companies besides Google and Anthropic that are considering renting capacity in xaispacex's datacenters. Global capacity for GPU hosting is tight at the moment. That TN DC is the only one not totally 110 percent already allocated for five years in the world .