Since Cursor often relies on Claude models, some of those services will flow back to their own datacenter compute. Especially if there's, lets call it, "customer demand loadbalancing optimization agreements" that makes those Cursor services prioritize Claude models using the app keys that get load-balanced onto the SpaceX datacenter.
Did SpaceX just spend $10B to rent out its own datacenter, juicing their recurring revenue metrics with their own AI services investment?
With Anthropic's help. And when it's time for Anthropic to hype their IPO maybe SpaceX will return the favour and offer some deal that looks great to retail investors.
I don't think it's the conspiracy theory that you're making it out to be.
It is publicly known that the vast majority of deals in the AI space are circular in nature without the need for explicitly encoding any of it in a legal contract or even tacit agreements.
e.g. Nvidia has invested significantly in many AI companies including both Anthropic and OpenAI which rely heavily on Nvidia's hardware and will undoubtedly use some of said investment towards that end.
Sure, if "pretty smart" means overinvest in capital spending on an dirty datacenter powered by unpermitted gas generators that you don't even need anymore because of lack of demand for your product, so you lease it to a competitor (presumably at a huge loss). I am not sure that "major source of revenue" as a datacenter provider is the kind of growth opportunity that IPO investors are looking for.
Its not even that. Its better to be involved in the game with a leader/help out a competitor who is competing against someone you don't like and don't want them to win, than to sit it out.
It was pretty obvious to me that the merger was a way of quietly shutting xAI down in a way that keeps investors happy. With it also being used as a vehicle to offload the Twitter debt to the public, he certainly has good accountants.
Yep - and in the meantime it's an asset of SpaceX to boost their IPO price, as long as this is done before people realize that xAI is apparently becoming a datacenter company not an AI one.
Then you've got SpaceX buying 1200 cybertrucks from Tesla, so it's serving as failure laundering vehicle for all his endeavors.
> it's serving as failure laundering vehicle for all his endeavors.
Which would be fine to me if Tesla wasn't a publicly traded company and SpaceX wasn't about to IPO. Whereas juicing companies in a way that affects the open stock market feels very inappropriate.
Why would they spend 10B and potentially 60B in cursor if they were to shut xAI down? And I'm pretty sure Elon wants to have a model of his own, even if weaker, so it's "not woke".
Yeah it's corporate subprime. Bundle a load of overpriced "assets" with made up valuations into something that's actually valuable, then shove it on the public markets so everyone has to buy it in their index trackers.
Plot twist but makes perfect sense for both companies.
Anthropic gets the compute they so desperately need to keep growing. Elon rents out compute that xAI couldn't make use of due to little demand for Grok. SpaceX gets revenue on the books for IPO.
PS. I want to translate this part:
We’re very intentional about where we’ll add capacity—partnering with democratic countries whose legal and regulatory frameworks support investments of this scale
To real speak:
We're putting profits above anything else. Yes, Elon is a far right guy who supported Trump, a president who isn't very democratic, but we're just really desperate for more money. We're also trying to make you forget that xAI is funded by Middle East non-democratic governments. Heck, we'll even buy compute from China if we can sell Anthropic models there.
>we'll even buy compute from China if we can sell Anthropic models there.
Considering that Anthropic mass-bans Chinese users accounts based on using VPN (used to circumvent the Chinese firewall) and then demands an ID or a residence permit of a country where Claude officially works to ensure that the user doesn't live in China, seems unlikely.
If the Chinese government tells Anthropic they can freely sell Claude in China, Dario is suddenly going to be kissing China's ass instead of saying how we can't let China win the AGI race for democracy and western values.
> funded by Middle East non-democratic governments
What's the problem here exactly? Are you insinuating any non-democratic government is bad and evil and only democratic governments are the correct and right way to govern? sort of like: "there is only one true prophet, and it's the one I follow, and all the others are false!"
Anthropic brought up the "democratic" justification, not GP. GP was just pointing out that Anthropic doesn't actually care. If it can get a sweetheart deal from an autocrat, it'll take it.
But assuming there are people that care, if a government doesn't derive its right to govern from the will of the people it governs, under what definitions can it be considered legitimate? Divine right of kings?
Yes, especially in the context of supporting US imperialism and capitalists interests (perpetual war + extraction machine) over what would actually benefit Americans: peace + cooperation initiatives. Something also tells me that American civilians would rather cooperate with peaceful governments than those that feed the blood machine.
America could do so much to compel the world to work in from a human rights perspective rather than petrodollars. I can't imagine any serious person would say the average American benefits from US imperialism. All US politicians did was traded away were secure middle class lifestyle for cheaper widgets, hardly anything worth caring about.
Who benefits from American petrodollar policies? Not Americans, all the wealth gets extracted to the elites while civilians suffer from the imperial blowback/boomerang.
Look at what the new deal coalition brought in and they nearly burnt out enough to allow neoliberalism to flourish during their fall. What do we have in return? No universal healthcare, no universal childcare, a broken welfare system, increasing income inequality, losing the ability to make a better life.
Urban/industrial and refinery complex; not at all rural. Located about 8 miles southwest of downtown Memphis (3231 Paul Lowery Rd) on a bend of the river.
Pretty smart for SpaceX though. They’re turning an asset they made for a money-pit (Grok) into probably a major source of revenue ahead of their IPO.
We all remember 2 weeks ago when SpaceX bought $10B of Cursor services. https://news.ycombinator.com/item?id=47855293
Since Cursor often relies on Claude models, some of those services will flow back to their own datacenter compute. Especially if there's, lets call it, "customer demand loadbalancing optimization agreements" that makes those Cursor services prioritize Claude models using the app keys that get load-balanced onto the SpaceX datacenter.
Did SpaceX just spend $10B to rent out its own datacenter, juicing their recurring revenue metrics with their own AI services investment?
If the question involves Elon and fraud or pumping numbers, then the answer is yes.
Either way, now those datacenters run Claude that they didn't before.
With Anthropic's help. And when it's time for Anthropic to hype their IPO maybe SpaceX will return the favour and offer some deal that looks great to retail investors.
I don't think it's the conspiracy theory that you're making it out to be.
It is publicly known that the vast majority of deals in the AI space are circular in nature without the need for explicitly encoding any of it in a legal contract or even tacit agreements.
e.g. Nvidia has invested significantly in many AI companies including both Anthropic and OpenAI which rely heavily on Nvidia's hardware and will undoubtedly use some of said investment towards that end.
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Big wheel keeps on turning
It's the circle jerk economy.
Companies appear to be spending endless billions on AI but ultimately it's a huge wank.
When you put it like that sounds like another subprime crash in the making lol
Sure, if "pretty smart" means overinvest in capital spending on an dirty datacenter powered by unpermitted gas generators that you don't even need anymore because of lack of demand for your product, so you lease it to a competitor (presumably at a huge loss). I am not sure that "major source of revenue" as a datacenter provider is the kind of growth opportunity that IPO investors are looking for.
Definitely not going to be leasing it at a loss. GPU's are sold out, Anthropic will be paying a significant premium.
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> presumably at a huge loss
Why do you say that? I was under the impression that everyone in the datacenter business was printing money.
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Its not even that. Its better to be involved in the game with a leader/help out a competitor who is competing against someone you don't like and don't want them to win, than to sit it out.
The enemy of my enemy is my friend.
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Thats just bullshit in this corporate world.
If he could fill his Datacenter with Grok use, he would make a lot more money.
This is not a good sign at all.
The financials for a Musk company do not, and will not, affect investor sentiment in the slightest.
Investors in the SpaceX IPO are buying a call option on Musk.
The weird thing is, that the IPO might still work out for him and save his ass again.
At least he doesn't come across as a happy person...
While i'm really curious though when someone might hit him back after all the garbage he did and still does
I see it more of lets make money off the hardware we are not using anymore.
From Elon on X: ... After that, I was ok leasing Colossus 1 to Anthropic, as SpaceXAI had already moved training to Colossus 2.
https://x.com/elonmusk/status/2052069691372478511
But like... most companies are so short of GPUs they'd run it on anything. SpaceXAI not needing the compute is not really a good sign imo.
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It was pretty obvious to me that the merger was a way of quietly shutting xAI down in a way that keeps investors happy. With it also being used as a vehicle to offload the Twitter debt to the public, he certainly has good accountants.
Yep - and in the meantime it's an asset of SpaceX to boost their IPO price, as long as this is done before people realize that xAI is apparently becoming a datacenter company not an AI one.
Then you've got SpaceX buying 1200 cybertrucks from Tesla, so it's serving as failure laundering vehicle for all his endeavors.
> it's serving as failure laundering vehicle for all his endeavors.
Which would be fine to me if Tesla wasn't a publicly traded company and SpaceX wasn't about to IPO. Whereas juicing companies in a way that affects the open stock market feels very inappropriate.
Elon Musk has been failing any minute now since like what? 2015
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Why would they spend 10B and potentially 60B in cursor if they were to shut xAI down? And I'm pretty sure Elon wants to have a model of his own, even if weaker, so it's "not woke".
The idea they're shutting down xAI is outrageously dumb and to me just sounds like FUD before the IPO
Yeah it's corporate subprime. Bundle a load of overpriced "assets" with made up valuations into something that's actually valuable, then shove it on the public markets so everyone has to buy it in their index trackers.
Not a merger, right, unless I missed something (admittedly skimming).
Plot twist but makes perfect sense for both companies.
Anthropic gets the compute they so desperately need to keep growing. Elon rents out compute that xAI couldn't make use of due to little demand for Grok. SpaceX gets revenue on the books for IPO.
PS. I want to translate this part:
To real speak:
>we'll even buy compute from China if we can sell Anthropic models there.
Considering that Anthropic mass-bans Chinese users accounts based on using VPN (used to circumvent the Chinese firewall) and then demands an ID or a residence permit of a country where Claude officially works to ensure that the user doesn't live in China, seems unlikely.
If the Chinese government tells Anthropic they can freely sell Claude in China, Dario is suddenly going to be kissing China's ass instead of saying how we can't let China win the AGI race for democracy and western values.
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Which naive souls are downvoting this? Anthropic is speed running Google's "don't be evil" mantra.
> funded by Middle East non-democratic governments
What's the problem here exactly? Are you insinuating any non-democratic government is bad and evil and only democratic governments are the correct and right way to govern? sort of like: "there is only one true prophet, and it's the one I follow, and all the others are false!"
> Are you insinuating any non-democratic government is bad and evil
The ones run by people who chop up journalists certainly are.
No, I didn't say that.
My point is that Anthropic cares a lot about "democracy" but will buy compute from a data center mostly funded by non-democratic nations.
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Anthropic brought up the "democratic" justification, not GP. GP was just pointing out that Anthropic doesn't actually care. If it can get a sweetheart deal from an autocrat, it'll take it.
But assuming there are people that care, if a government doesn't derive its right to govern from the will of the people it governs, under what definitions can it be considered legitimate? Divine right of kings?
I would say ruling over people without their consent is blatantly morally wrong, yes. In the same way anything non consensual is wrong
Yes, especially in the context of supporting US imperialism and capitalists interests (perpetual war + extraction machine) over what would actually benefit Americans: peace + cooperation initiatives. Something also tells me that American civilians would rather cooperate with peaceful governments than those that feed the blood machine.
America could do so much to compel the world to work in from a human rights perspective rather than petrodollars. I can't imagine any serious person would say the average American benefits from US imperialism. All US politicians did was traded away were secure middle class lifestyle for cheaper widgets, hardly anything worth caring about.
Who benefits from American petrodollar policies? Not Americans, all the wealth gets extracted to the elites while civilians suffer from the imperial blowback/boomerang.
Look at what the new deal coalition brought in and they nearly burnt out enough to allow neoliberalism to flourish during their fall. What do we have in return? No universal healthcare, no universal childcare, a broken welfare system, increasing income inequality, losing the ability to make a better life.
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Don't forget the whole, "maybe this will make it easier for xAi to distill anthropic models and we can make another attempt at mechahitler"
Thank you for the "real speak" section. Accurate and hilarious.
Excess money and influence makes a lot of things possible. Evil or good, that's a separate discussion.
I'm just relieved to read that it isn't in fact...in space.
I'd rather it be in space than where it is now, poisoning people in the rural parts of Memphis with off-gassing from their methane turbines.
Urban/industrial and refinery complex; not at all rural. Located about 8 miles southwest of downtown Memphis (3231 Paul Lowery Rd) on a bend of the river.
SPAAAAAAAACEEEEEEEEEE (it is a Portal 2 space sphere reference)