alt Hacker NewsMore signs that xAI might be giving up on the AGI race. xAI let Cursor train a model on Colossus 2, gave the entire Colossus1 to Anthropic, and is now giving compute in Colossus2 to Anthropic as well.
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Elon lost his lawsuit with openAI and knows xAI isn't on the same trajectory. Might as well try to win the bet and flip off Sam by supporting the best competition. Also they are getting a head start on AI as a commodity. I'm sure there's plenty of money to be made for those that can leverage their capital to essentially rent capacity right now. If he's not making enough off of grok, might as well cover their expenses.
It was kinda obvious when SpaceX "acquired" it. Elon rewarded xAI investors/prevented lawsuits by giving them SpaceX equity, and that was that.
FWIW, SpaceX (parent company of xAI) has an option to acquire Cursor for $60B that expires 7 days after their imminent IPO.
xAI might acquire Cursor. They are in the process of training new coding models and probably a new Grok.
Until they finish training, it makes sense to rent the excess capacity.
Bad read on the situation. xAI has too much compute and not enough customers using it. They have around half a million GPUs, some of which are stolen from Tesla, running at 11% utilization. xAI predicted more people would be using Grok, but Grok is not a SOTA model & users primarily want to use SOTA models. They have excess capacity and it makes sense to rent out GPUs to other customers while they improve their models.