What's their novelty or moat to maintain the value chain? And why do we only see google, who already owns it, raising their hand to rent at these prices?

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chatmasta 4 hours ago | parent | next [-]

I’m not sure they need novelty or moat. AI compute resources are so scarce that inference providers will buy whatever is available. SpaceX sells inference hardware in bulk, with a proven track record of running inference and training workloads at scale.

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mlyle 3 hours ago | parent [-]

Without a moat, P settles to MC. No one makes significant profit.

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chatmasta 2 hours ago | parent [-]

xAI covers their cost of N-1 datacenter while running their own models in N and building out N+1.

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SecretDreams 2 hours ago | parent [-]

And they make all of their money from the N-1 data center they are renting which is sand moat.

What point are you making?

	▲	chatmasta an hour ago \| parent [-]
		What? They make money from their own inference and models too, which they can train effectively for free by funding their operations with rental income from their last gen datacenter.

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Brybry 4 hours ago | parent | prev [-]

Anthropic is also paying $1.25 billion a month for xAI datacenter compute (though Google does own ~14%? of Anthropic too).

[1] https://www.businessinsider.com/spacex-ipo-anthropic-paying-...

[2] https://www.nytimes.com/2025/03/11/technology/google-investm...

	▲	SecretDreams 2 hours ago \| parent [-]
		I'm not a big fan of this level of circular financing and ownership. The transparency is severely obscured.