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I thought that was an interesting data point, they would rather have their competitors use the infrastructure rather than use it themselves... seems to say a lot about the confidence they have in their business.
Not really. The Colossus 1 system, previously used by xAI but is now full of older/less state of the art GPUs than what its newer Colossus 2 system is using. By some measures, those GPUs have 5x the training capability. It's a testament to how quickly the technology is evolving. And that agreement is also a very short term lease, on the order of months. xAI can reclaim that infrastructure for its own purposes quite fast.
Claiming that this move (which is generating insane levels of profit for xAI, BTW) proves that xAI has a lack of confidence in its business is like claiming Amazon doesn't have confidence in its AWS business simply because it lets its competitors rent out its own servers.
