I can understand this being a move to increase valuation, but I can't connect with the stupidity and scamming investors argument.

Sorry, I was unclear. With that I did not talk about this particular deal. This particular deal seems sane. XAI built more compute that they can use themselves since Grok is not very successful so to not just have the hardware standing there they rent it out to competitors. Makes total sense.

It is other things Musk has gone with Twitter and SpaceX which are shady.