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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 hardw
by chatmasta 4mo ago
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.
- mlyle 4mo agoWithout a moat, P settles to MC. No one makes significant profit.
- chatmasta 4mo agoxAI covers their cost of N-1 datacenter while running their own models in N and building out N+1.
- SecretDreams 4mo agoAnd 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 4mo agoWhat? 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.