Comment by burnerRhodov3
16 days ago
>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.
I'm not saying its not a reasonable business, but we are not asking 'can it be a business', we are asking can it be one of the most insane companies in world history. The suppliers have realized whats going on and they are racking in insane profit.
That's why all the Musk fans have realized that they need to scream 'Terafab'. But that is a fanciful concept and unprecedented in history of semiconductors.
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