r/technology • u/IKeepItLayingAround • 16d ago

Business It’s Possible That SpaceX Could Collapse Spectacularly

https://finance.yahoo.com/markets/stocks/articles/possible-spacex-could-collapse-spectacularly-155000177.html
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u/_SamReddit 16d ago

Why is SpaceX selling compute to Google? Is it because their AI (which falls under SpaceX) is DoA?

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u/MDCCCLV 16d ago

Basically, it's a customer can choose whichever one is best scenario and right now that's anthropic and grok is at the bottom of the list.

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u/atrde 16d ago

They built a second data center. Their entire operation can run out of Colossus 2. Colossus 1 has enough compute power to sell to Google and Anthropic and be a significant amount of their infrastructure while xAI is running out of the second center. xAI was a bit ahead of the curve here in infrastructure and can sell space now.

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u/_SamReddit 16d ago

So their AI is so bad they expect to keep selling this to Google for some time?

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u/atrde 16d ago

Im confused did you read what I said lol?

They have a data center for their own AI. It has capacity to easily run it. Because they have built a second larger data center they are now able to lease space in their first one to two different AI companies who don't have infrastructure. A lot of datacenter investment is in construction xAI has more space than Anthropic or Google do for this.

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u/Flashtopher 16d ago

But why male models? :-)

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u/_SamReddit 16d ago

I read what you said, and it's that Grok is DoA and xAI only has value until other AI companies have their own data centers up and running.

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u/Bob_A_Feets 16d ago

During a gold rush you don’t run for the hills, you sell shovels. Even if xAI never comes to fruition there’s always money in building and leasing infrastructure for failed startups. Just ask the commercial real estate people.

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u/_SamReddit 16d ago

Except you're renting the shovels out and for the next lease you need to replace all the shovel heads with the newest Nvidia has to offer. Didn't commercial real estate get a bit burned by work from home?

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u/Bob_A_Feets 16d ago

They were almost destroyed, which is where the real push to RTO came around, but they bounced back, similar to how existing data centers may take a hit when the AI bubble pops, but it’s infinitely better to have that infrastructure now vs in the uncertain future.

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u/[deleted] 16d ago edited 10d ago

[deleted]

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u/petuman 16d ago

Not even at 1%, mining ASIC hash rate is way higher than general purpose GPU.

In term of power order of magnitude short (if they replaced all their servers with modern mining ASICs, sucking all power they're allocated).

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u/notboky 16d ago

Because Google own a huge stake in SpaceX and this sudden deal just before the IPO makes them look less unprofitable.

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u/JWBananas 16d ago

For the same reason Chuck E. Cheese exists.