What’s doubly interesting about this is Amodei is actually willing to partner with xAI and use their capacity despite Colossus 1 and 2 being filled with Nvidia chips. Amodei, and by extension Anthropic, understandably does not have a positive relationship with Nvidia as Huang is constantly trying to sell chips to China, which Amodei heavily dislikes because he has negative viewpoints on China. As always, constraint forces compromise, etc. etc.
The lesson being that if you invest billions in data centers for your LLM, but there’s no demand for your LLM – you can just lease that data center to someone who’s LLM does have demand, and still make money. AI focused compute has become a commodity with a floating market price.
That deal was a pretty big victory for team “AI is not a bubble”.
Global_Pin7520 on
A bit of a weird article. “The case against” against what? Calling xAI a “datacenter company with a proof-of-concept model” vs calling them a “frontier model company that has excess datacenters”? I mean, okay, and? It’s not really clear what the position being taken here is, other than a semantic debate.
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What’s doubly interesting about this is Amodei is actually willing to partner with xAI and use their capacity despite Colossus 1 and 2 being filled with Nvidia chips. Amodei, and by extension Anthropic, understandably does not have a positive relationship with Nvidia as Huang is constantly trying to sell chips to China, which Amodei heavily dislikes because he has negative viewpoints on China. As always, constraint forces compromise, etc. etc.
https://preview.redd.it/e763eh8puo6h1.png?width=1287&format=png&auto=webp&s=f2e1c15c99f4826cdd625ba057e2dfd7073b14e7
The lesson being that if you invest billions in data centers for your LLM, but there’s no demand for your LLM – you can just lease that data center to someone who’s LLM does have demand, and still make money. AI focused compute has become a commodity with a floating market price.
That deal was a pretty big victory for team “AI is not a bubble”.
A bit of a weird article. “The case against” against what? Calling xAI a “datacenter company with a proof-of-concept model” vs calling them a “frontier model company that has excess datacenters”? I mean, okay, and? It’s not really clear what the position being taken here is, other than a semantic debate.