Comment by petesergeant
9 hours 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.
9 hours 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.
Nevertheless, 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.
> That investment also probably covers things like power, salaries, etc.
That does not seem probable to me, other than for the initial build-out.
free cash flow pays down capex