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That's very doubtful given recent news that Colossus is running at 11% capacity and has hundreds of thousands of idle GPUs. xAI acquired too many GPUs and curre
by tristanj 5mo ago
That's very doubtful given recent news that Colossus is running at 11% capacity and has hundreds of thousands of idle GPUs. xAI acquired too many GPUs and currently doesn't have enough customers to use them. That's why they are making compute deals with Anthropic and Cursor.
xAI is bleeding money and this compute deal with Anthropic will pay for all of xAI's capex ($25 billion) in 2 years.
- shenberg 5mo ago11% MFU does not mean 89% of GPUs are idle, it means that they're using the GPUs ineffectively.
- jbs789 5mo agoThe post you’re referring to doesn’t even include “89%” or “idle”. I’m not sure I understand the point you’re making then rebutting.
- SecretDreams 5mo agoThis might actually be worse from a power costs standpoint.
- reliabilityguy 5mo ago11% capacity is not 11% MFU. The first is about actually using the hardware for something in the first place, the latter is about how efficiently you compute. Different things.
- petesergeant 5mo ago> will pay for all of xAI's capex ($25 billion) in 2 years This is a confusing framing; you pay down capex with profit not revenue, and there is presumably a high opex cost.
- ayende 5mo agoNevertheless, you are still talking about 15B / year - when the initial investment was < 30B. That investment also probably covers things like power, salaries, etc. So you are still covering all of that.
- petesergeant 5mo ago> That investment also probably covers things like power, salaries, etc. That does not seem probable to me, other than for the initial build-out.
- jasondigitized 5mo agofree cash flow pays down capex
- andriy_koval 5mo ago> xAI is bleeding money and this compute deal with Anthropic will pay for all of xAI's capex ($25 billion) in 2 years. minus maintenance and energy cost.