alt Hacker NewsKeep in mind Google also rents GPUs via GCP, so they could be just reselling these to GCP customers?
Thing is though, Anthropic was really against the wall with lack of compute pre xAI deal. And tbh, Gemini reliability has been abysmal which probably points to real compute shortages.
And nearly _every_ major DC project is really up against it with massive delays, etc. Stargate UAE has been badly affected by the Iran conflict.
So maybe long term this isn't a great business, but _right now_ I'm not convinced it's all financial engineering. There is a enormous shortage of compute and xAI has a load of it _available now_.
> So maybe long term this isn't a great business, but _right now_
Exactly! "Maybe not a long term great business" is exactly the opposite of what you want to buy in an IPO.
This is a "private equity can squeeze out a ton of cash from this asset portfolio" situation, and very much not a "in a few years this will be a trillion dollar business competing with the biggest companies in the world" bet.