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I'm just wondering why they sold compute to Anthropic if they were planning on still competing in this race?
by rd 2mo ago
I'm just wondering why they sold compute to Anthropic if they were planning on still competing in this race?
- JLO64 2mo agoLikely because they had the capacity to spare. Prior to Grok 4.5, I doubt there was much demand for their models.
- scottyah 2mo agoFor distillation deals lol
- Strom 2mo agoThe revenue was critical to making their IPO numbers look a bit less insane.
- HarHarVeryFunny 2mo agoCompeting doesn't mean winning The rental deal can be terminated by either side with 90 days notice, and presumably Musk would do so if he needed the compute or generally thought it advantageous to do so. For now he doesn't need the compute. The rental deal may also have been at least in part to juice the SpaceX IPO and to help Anthropic stick it to his enemy OpenAI.
- everfrustrated 2mo agoTiming. They had a massive amount of compute coming online and a serious pipeline of more arriving.
- Rover222 2mo agoa lot of that compute is used for inference, which is demand-based
- mortenjorck 2mo agoAs a point of comparison: Samsung has sold smartphone chips and later OLED displays to Apple for over fifteen years. Deals like this that look awkward from the outside but are mutually beneficial to both participants exist everywhere.
- zzzoom 2mo agoEach minute that a GPU isn't running is money evaporating