| ▲ | fauigerzigerk 5 hours ago | |
I have no love or hate for Elon Musk. I wish him luck with his space endeavours. What's desperate is announcing a temporary (allegedly) doubling of revenues days before an IPO that has been criticised for being overpriced at 93 times sales. These data centers were supposed to serve xAI. Now suddenly they get rented out to others. Why the sudden change of plans? It's either an emergency accounting gimmick or the effective shutdown or repurposing of xAI. | ||
| ▲ | brookst 5 hours ago | parent | next [-] | |
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. | ||
| ▲ | dyauspitr 4 hours ago | parent | prev [-] | |
Why don’t you have hate for Elon? You can love his companies but hate the man. It’s what I’m doing anyway. | ||