Comment by h14h

> they could not make use of it!

Grok 4.3 was made on Colossus 1? It's not frontier quality, but it's definitely not nothing. Also, Cursor brings more expertise to help them improve their utilization further.

Additionally, I struggle to see how renting out excess capacity is anything but good. It brings in a ton of cash at a price premium, and ensures they have headroom to gradually phase out rental capacity as their internal demand increases.

> You think they have more compute than Google?

Fair point. No way they have more raw compute, but I do think it'd be fair to say they have more "excess compute capacity" than Google, but even that is pretty speculative.

> You think they have the most cashflow?

Again fair point. I was overestimating how much cash comes from a $2T IPO before actually looking at the numbers. My revised take is that SpaceX/xAI are now in-line with the other labs on cash liquidity, rather than leading (where pre-IPO they were way behind)

> You think they have higher quality training data than Anthropic, Google, and OpenAI?

Yes -- I'm standing by this one. Cursor has a multi-year head start on agentic coding data collection, and a GUI UX that likely provides richer user sentiment & quality signals than something like Claude Code.

Obviously OpenAI & Anthropic have far larger proprietary datasets for chat histories, and Google is an undisputed leader in data hoarding. But when it comes to agentic coding specifically (AI's most compelling use-case, IMO), I think Cursor's data is a HUGE deal. This is backed up by how good Composer 2.5 was given it was essentially Kimi K2.5 + Cursor data.

Additionally, I also suspect its possible to mine Twitter for user engagement & sentiment analysis to create surprisingly useful datasets.

> Training on what? They rented both of their data centers away!!!

I thought they only rented Colossus 1, but you're right they're also renting out a portion of Colossus 2. That said, they still have 2/3 of their Colossus 2 facility available for internal, which is likely enough to build something competitive. They also have 90-day termination agreements in place once they forecast a need for more internal capacity.

All that said, while I appreciate your pushback & I was overly hyperbolic on a few key points in my last comment, I stand by my core theses: The Cursor acquisition (assuming it goes through) combined with the SpaceX IPO puts xAI/Grok right in-line with the other big labs, at least in terms of positioning.

Whether they're able to execute remains to be seen, but I would not at all surprised to see a frontier-quality Grok 5 or Composer 3 release before the end of the year.