Elon Musk says the short duration preserves resource flexibility
@beffjezos The deal is just literally short-term as a statement of fact. It may be renewed at a lower price, the same price, a higher price or it may end.
For what it’s worth, the short deal length was our request, not theirs, as I thought we might need the compute back at some point.
Temporary alliance between the kingdoms
Positive users see the short-term xAI-Anthropic GPU deal as a smart revenue move from idle hardware, while negative users call the terms unrealistic and criticize Musk's shifting reliability.
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Definitely, you have to keep some compute for Grok to gain marketshare.
That being said, I really think you should keep expanding this Cloud segment of the business, even as Grok recaptures some territory on the model layer.
You are the best at infra on Earth, the whole market needs infra. You will have demand for all the compute you can build.
Once you start offering compute in space, you will have privileged access orders of magnitude more "land" and energy than any other provider.
Selling compute as a service to third parties is how you can get the capital to grow the fastest and expand SpaceX to be a solar system scale business within a decade.
@beffjezos The deal is just literally short-term as a statement of fact. It may be renewed at a lower price, the same price, a higher price or it may end.
For what it’s worth, the short deal length was our request, not theirs, as I thought we might need the compute back at some point.
@elonmusk @shaok45000 @beffjezos 🐯
😲
✈️
😄🗯️
Elon on the compute as a service deal between xAI and Anthropic:
@beffjezos The deal is just literally short-term as a statement of fact. It may be renewed at a lower price, the same price, a higher price or it may end.
For what it’s worth, the short deal length was our request, not theirs, as I thought we might need the compute back at some point.
@elonmusk @beffjezos Elon being the biggest compute seller in the world be like.
@elonmusk @beffjezos What’s your thought on communist Bernie Sanders wanting to tax AI company like OpenAI and Anthropic 50%
He really contributed to nothing but memes 😂
@elonmusk @beffjezos Short-term deals have a way of becoming long-term dependencies. Hope there's a solid backup plan if the compute is suddenly needed elsewhere.
@elonmusk @beffjezos Optionality has its own value. Just difficult to model. In theory should always be more margin with internal use
@elonmusk @beffjezos Terafab going to be the solution?
@elonmusk @beffjezos Definitely will need to compute sooner than most expect.
@elonmusk @beffjezos Yes SpaceX is in charge of
@elonmusk @beffjezos no problem cashing in for a while
@elonmusk @beffjezos Everyone on X thinking they are founders/c-suite
@elonmusk @beffjezos I get where you're coming from. It feels like a strategic move, but what if that short, term deal limits long, term growth? Sometimes, locking in for a bit longer could pay off. Was the flexibility really worth the potential risk?
@elonmusk @beffjezos Development of Faster AI Systems: Companies like Anthropic will be able to train their AI models much faster and with a significantly higher capacity.
Benefits to Global Scientists and Researchers
@elonmusk @beffjezos We are getting rate limited to hell. You need that compute back ASAP.
@elonmusk @beffjezos
@elonmusk @beffjezos @elonmusk this is simple. Iyktyk.
@elonmusk @beffjezos Prudent move, having room to adjust is the biggest advantage
@elonmusk @beffjezos Love the transparency. Short-term deal = no long-term regrets. xAI playing 4D chess on the compute board as usual. 💻
@elonmusk @beffjezos