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.