Another way to read this is, "Twitter's AI dept. has been doing so badly they don't have a use for billions of dollars of hardware they bought."
On the one hand, yes, this is really embarrassing for Grok. On the other hand, everyone except a couple Twitter randos already thinks Grok is worthless junk: there's no reputation left for it to to lose. And Elon is crying all the way to the bank with an extra $11bn in annual revenue.
The downfall of Twitter is one of the most spectacular self inflicted business failures I have ever witnessed.
Amazing to think it was once so ingrained in mainstream society.