AI & Tech
SpaceX Renting Colossus Data Center to Google for $1 Billion Monthly
My First Million
The most simplified breakdown of the SpaceX IPO on the internet
"Just in the last, I don't know, 2 months, they announced 2 deals that I think are combined worth like $20 billion or more, $1 billion a month. So $12 billion a year to use his data center. And that's Google. Google themselves was the best at building data centers, and they need to rent from Colossus."
After Musk's AI chatbot Grok failed to compete with ChatGPT and Anthropic, SpaceX pivoted by renting out its Colossus data center, the largest GPU cluster in the world, to competitors including Google and Anthropic for over $1 billion per month combined. The deals are short-term with 90-day cancellation clauses, representing a "failing forward" strategy to monetize underutilized AI infrastructure.
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My First Million