It seems Xai cant get credit.
The era of the billionaire circle jerk.
They can start to soup up most hardware and electricity in huge deals while consumers become at risk of deficiencies. And they get to determine what it's used for and it will not be in our benefit in the end. I welcome any news about them not being able to do that.
Gee, it's almost like Elon doesn't have $500,000,000,000 huh...
Certainly. NVIDIA “invests”, and gets to sell its chips. AI looks super important, and NVIDIA’s numbers look great. I can’t wait for the sad hour meaner pieces all over YouTube and CNN about homeowners that had a datacenter built nearby. Naturally, there will be complaints about noise among with increases in water and electricity bills.
They give xai 2 bil, which xai uses to buy nvidia GPUs but it makes the funding round look important and safe because nvidia invested so othe people invest to which ends up being spent on nvidia GPUs anyway. The thing is xai is spending insane amounts of money while having 3% market share. They cannot sustain themselves without money getting pumped into them but that will end at some point.
XAi is losing a billion dollars a month and expected to lose 12-15 billion dollars for 2025. And senior talent leaving. Also being accused of wasteful spending.
Counting paper wealth as wealth is, and always has been, stupid.
xAI is serving as the Conservapedia to Sam's Wikipedia.
Elon should be able to fund it woth that fictitious net worth with no issue....oh wait, he can't.
So Nvidia lends the money to buys its chips. Interesting.
It's so incredibly weird to see places in west Texas act like water is a given while noting that Stargate is projected to use 400 billion gallons of water by 2030 in a region that is consistently classified as being in a drought (with regular and routine extreme drought conditions).
Idk why they don’t build these data centers somewhere cold and more remote up north. I guess they probably need it closer to the population that’s using the services?
Haha, so what? They’ve seen what happened with AMD and OpenAI and want to copy it in a way? But in this situation they want money and GPUs from NVIDIA? At least AMD is getting something out of it when they sell their GPUs and possibly give the option for OpenAI to buy stock
They are going to spend $20bn on renting some chips?
Outside Quant trading the location is not super critical. The big content providers have delivery networks that include caching in the cabinet. The bigger driver for core data center locations is the tax perks and government grants.
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Why would they do it then?
xAI can't get credit so they have to structure it like this.
Lol. this is when the scam starts to fall. Looks like someone is behind on paying their investors back.
If he really believed in all this then he'd leverage his Tesla or SpaceX shares to fund xAI/X
he knows it's too risky, why do that when other people will willingly throw their money away for you?
Pretty much... X/Twitter was saved by the Generative AI/LLM cycle. It let him combine X with xAI then refinance if I remember correctly. xAI is tiny in comparison to competitors and it's not even that good, or cheap, so it'll be interesting to see how this plays out but then again AI companies have discovered a circular finance model they're going to play to death. NVIDIA might be the first 10T company at this rate. China is still fascinating because they are making their models open-weight with more permissible licences. They also have to work to constraints which means they are thinking around the problem instead of throwing money at it. Meta is also fascinating because they publish decent open-weight models and are spending a lot. Google is the only player with their own chips. I actually invested here when their share price was depressed recently, I didn't get it at it's lowest but wasn't far off. Okay... long essay/rant over.
Why can't they get credit? Also isn't that kinda suspect or weird, I lend you money to buy from me?
Incentives can be used and can be weird, but it seems like they wanted to say that Nvidia was an investor to get others to invest
Gotcha. Thanks
The rumor is his Tesla shares are already leveraged pretty hard and they have some tough times ahead.
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