Comment by panick21_
16 days ago
Buying NVidia gear early and renting it out isn't exactly business model. Like what is their moat? While literally everybody is bidding up hardware?
The only way you can see this continue as a model if space based data-centers actually can beat everything land based. And that is very questionable.
> What can he do now that he's got a $85B war chest of cash?
Increase the profit of Micron and NVidia?
>Buying NVidia gear early
xAI was retardedly late to the party. When Elon Musk founded xAI in July 2023, competitors had already spent years buying up massive silicon footprints and locking down cloud partnerships.
OpenAI had a 3 year lead, anthropic 2.5 years, and google was building TPU's since 2015... what are you talking about?
First, many more people then just them buy these things and have ramped up their spending over the last 2 years.
And others if they were earlier, the explosion and demand of investment increased exponentially over the last 2 years, as we can see in the profit margins of the memory companies for example.
My claim was not that they were the first ever, but that Musk mobilized a huge amount of resources fairly quickly in a time where prices were exploding and before many others.
Early enough that compared to now he got a ok price and he can rent it more expensive then he bought it.
He can do things and a scale and timeline that is impossible for other to achieve and why he can make so much money? I agree.
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