I think in the case of supply-constrained GPUs, you can get the opposite of a volume discount. Google has the most capacity of anyone, the fact they’re paying so much per month to spacex is pretty remarkable
More like incredibly lucky that the global hardware market dried up for compute capacity even as his AI product flopped. Right place at the right time.
I just dislike that it is now harder to avoid giving Musk money directly or indirectly.
Which means more Grok degradation, more severe throttling, etc.
I can't understand why xAI charges 50% more per month for Grok over competitors when it doesn't even gracefully downgrade to a cheaper model when paid subscribers hit the limit.
Grok is pretty good. It really excels when the results can be improved by deep online search. It tends to be more aggressive in looking things up than competitors. I use it in certain situations.
I've used/use it. For a while it had one of the best lightweight coding LLM's, which actually lead to a #1 spot on openrouter usage ranking although they've fallen off the top 10 used now. It's also provided some good reasoning models, which perform better when dealing with non-PC topics.
Also, although I've never used it for this, I believe some of the paid models produce some of the best "adult" content, and I know there are even subreddits which do nothing but praise Grok and "content" produces who use it.
Without giving too many details I thought it would be fun to make 2D games based off of banned books (sort of as a marketing ploy, paradoxically everybody likes banned books). Camp of the saints seemed like a good target, which is a fictional book based in 1980's France dealing with incoming flotillas of immigration. I found that ChatGPT would push back on the premise of the novel instead of coding, while grok models just called things "edgy" and went to work.
I have more examples (mostly dealing with realtime web filtering) but that's the immediate one that comes to mind.
> can't understand why xAI charges 50% more per month for Grok over competitors
One potential read is xAI knows Grok isn't going to be a Tier 1 model. So while SpaceX focusses on infrastructure, Grok bets its users like its model enough that they'll pay a premium for it, even if this curtails growth prospects.
They already make it required to have a premium X account
Claude has tons of throttling already. Chat GPT is not as accurate at computational problems despite less throttling. Gemini has fewest restrictions but worse quality. Always a tradeoff.
Probably because it has all but zero filters on the input and output. It took widespread media outrage about "grok show me her in a bikini" to at least create a filter that bans such things.
> SpaceX said in the filing that if it fails to “deliver access to the committed amount of GPUs by September 30, 2026,” Google can immediately end the agreement, or accept the number of GPUs provided at a reduced fee after a one-month grace period.
> After this year, the agreement can be terminated by either party provided they give 90 days’ notice.
Circular financing at its peak for the IPO. There has to be some regulatory body to not allow such shady things
Circular financing would require SpaceX to buy a similar quantity of stuff from Google. (Or invest in Google.) We have no evidence of that. Instead this looks like Google taking advantage of SpaceX’s desire to print revenue today versus a month from now.
(If the agreement is terminated with no exchange of goods, it might be market manipulation. But still not circular financing.)
It's circular since Google owns part of SpaceX. According to [1] they own 7% of SpaceX, so a $1.75T IPO would value their stake at $120B. The target IPO price is >90x revenue, so if Google increases SpaceX's revenue by $11B, SpaceX's valuation could increase by $990B to maintain the same multiple, which would increase the value of Google's stake by $69B.
Not what circular financing means. Buying from a company you own stock in can be a conflict of interest, but it's only circular if you invest in the company and then they use those proceeds to buy your stuff. A past investor buying services from a company they are affiliated with is pretty par for the course in business.
I'm not sure this is true for Google. Ignoring their equity in Anthropic, AI is generally a threat to Google, since it's the closest thing to upsetting their search monopoly. The best case for Google is if OpenAI and Anthropic are way out over their skis, and Google is the only major player left with their sturdier financial position. The worst case is if ChatGPT/Claude completely displace search and nobody wants to pay for gemini. I find it unlikely that all three go down for the same reason.
More to the point, allegations of circular financing are about following cash. When NVIDIA invests in a company so they can buy NVIDIA chips, that raises a unique set of questions distinct from other types of conflict of interest. Affiliated parties doing business, as is the case between Google and SpaceX, has its own host of conflict-of-interest concerns. But they're distinct from those that arise in circular transactions.
Yeah, I just looked this up because my first thought was another circular financing deal (or not circular by definition but certainly backscratching). Looks like Google's SpaceX stake, diluted, based on a cursory search, at a $1.5T valuation is somewhere in the $80-$100B neighborhood (bought back in 2015 I think is what it said when SpaceX was valued in the low tens of billions if I'm remembering correctly). So you have Google sending $12B back to SpaceX annually in this deal, so maybe 12% or so of their equity stake at that valuation. I'm not sure how to feel about it other than a means of swaying people to buy into the IPO with the added benefit of actual compute value.
And seems silly to ignore that the Google founders and Elon are buddies, or were, based on which gossip rag you believe in, and there's zero chance these types of deals are being made independent of those guys talking (when are they ever, of course, but it's even more obvious in this case given the players and their histories).
I avoided adding too many details, made a base assumption that folks on this topic would already be aware of google's investment in spaceX, probably should have added that too
Tangent alert: a couple of questions for folks who know far more than I do about compute capacity and Google these days...
Lately, like the past few months, I've noticed Google services (search, gmail, drive, maps) running very slowly to the point where, at the moment it happens, I always think it has to be my connection and not Google, but sure enough every time I check a couple of speed tests and they're... fine. And then I don't seem to be having the same latency from other sites/apps. Is there any chance that the commingling of the AI snippet and then directing users into the AI funnel through the text box is actually causing material performance impacts in other Google properties? Probably a dumb question because I can't imagine they would allow performance for broader properties to suffer for AI prompts/chats, but then again all this talk of compute starts making me think otherwise, like the prolific amount of prompting and chatting is causing massive across-the-board performance issues.
Somewhat related, but does anyone use Gemini and end up with the experience where you have a chat and it's obvious, to yourself and to Gemini, that you're trying to find a product to purchase, but Gemini doesn't even link you to what you would think would be the obvious place to purchase the product? This happens daily where I interact with it, it suggests some products, but won't even provide a link to that product or, if it does provide a link, it's to some no name site that wouldn't come up as a highly-ranked paid or organic result through regular Google search. Keeps making me think this is a Google performance problem where they have not figured out how to take the entire AI chat and engineer it back into a simple short keyword phrase to get an acceptable search result.
Btw, if anyone's thinking "why are you using Gemini because it's the worst?" I think that's fair and right. I have... reasons, but they're not super sensible ones.
Yesterday the Gmail virus scanner stopped working. For a while I couldn't download my attachments. A few minutes later it said the virus scanner was offline and download at your own risk.
Meet audio seems to be having a particularly bad week. It just doesn't work with headphones. Their testing tool indicated everything was fine. It's worked after I logged off and on. Audio quality issues are getting more common as well.
Yes. When I plug my phone into the car it used to use google assistant to process voice commands and it was pretty fast. Now for some reason it has switched to Gemini and it takes twice as long to play a song or send a text. Sometimes Gemini forgets it even has the ability to play songs. Gemini is better at answering random questions that the kids ask though.
Maybe agentic PRs made it to production and performance cratered.
On a serious note I feel the same. Google is slow these days and the slowest and least reliable service of them all is Gemini. Sometimes I don't even know if it hang already (no error messages) or if it's still "thinking".
I'm probably 50/50 with search in particular logged in vs. out and I do think I notice on both, but I'm not entirely sure. Just saying the search and maps algorithm is wading through so much of my history that it can't help but choke trying to deliver the "right" results?
No, but I was thinking it might be possible that your account is specifically afflicted by some storage problem. For example, it could be homed in the wrong part of the world, compared to where your browser is hitting frontend applications. Or a million other possibilities. When logged out those wouldn't be factors.
It's not an AI company. It is a datacenter company. While all frontier AI labs are fighting for compute SpaceX is give up compute, instead of reserving it for their own models. That tells you all we need to know
So space data centers are absolutely possible then. I heard a lot of skepticism about the feasibility but it looks like Google and Anthropic looked at SpaceX and trusted them to deliver on the promise and even signed deals worth billions.
I thought it was notable that in Google's press release yesterday regarding their new facilities near Amarillo they seemed to go out of their way to point out that the applications are not AI, listing "Search, Gmail, Maps, Cloud, online banking, and 911 systems" instead. I wonder if they find it more convenient to rent an existing one rather than face public scrutiny for building another "AI data center".
Perhaps. It also seems to insulate Google from the risk that air quality regulators will be unexpectedly reinvigorated, while still providing to Google the benefits of xAI's lawlessness.
> How did Elon get so much NVIDIA hardware before everyone else?
He’s the richest man on the planet and doesn’t have a track record of not paying for shit he buys. If you want to reliably offload your chips, he’s safer than e.g. OpenAI who might or might not have the money when the bill comes due.
> He’s the richest man on the planet and doesn’t have a track record of not paying for shit he buys.
My impression was the other way around. The shenanigans he pulled around the Twitter acquisition were just farcical, and at Twitter he repeatedly refused to pay owed rent, etc. (I assume as a ploy to renegotiate terms).
Google is getting in bed with some folks even more unsavory than themselves. The thing I noted most from I/O was how prominent and proud the are of partnering with Palantir. "Do no evil" has become "Let's do evil"
Impact in the zeitgeist. Twitter was everywhere. Regularly referenced on live news television statins. Was considered a major news source. Shows had segments dedicated to it. Everyone and every brand had a Twitter. That is not the case today. Not by a long shot.
Not an easy thing to gauge. X/Twitter stopped publishing MAUs after the acquisition.
External estimates vary, some point to growth, some to stagnation. We know that revenue suffered. LOTS of partisan and emotional opinions for either.
Google trends does paint a bleak picture for X but I am also questioning how much google itself can gauge that after LLMs exploded in popularity.
Anecdotally I did notice that references and embeds to X are way less prominent and common than before. My usual news used to be filled with them. My consumption of the platform also plummeted after not being able to read threads when not logged, its much harder for me to get drawn into it.
Still without data, I would be surprised if the changes to verification and logged out access did not massively hurt new adoption. With tiktoks prevalence amongst a new generation I would bet its a matter of time before X gets grouped to tumbler/facebook, not dead, but way past its peak and cultural relevance. If that has not already happened.
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.
Is this another circular investment to help pump up the stock valuation? Why would Google need to rent that much compute?
> Google parent Alphabet has made a windfall from backing SpaceX, which was worth $12 billion at the time of its 2015 investment, and is looking to go public at a valuation of over $1.75 trillion
also google: renting capacity from a data center powered by 27 methane gas turbines on trailers
https://www.epw.senate.gov/public/index.cfm/2026/4/whitehous...
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