Or is there something fundamental in the way these models get deployed (encryption or something or than legal contracts?) at this scale that prohibits the owners of the infra from gaining this level of insight / access?
The contract can stipulate a penalty at a high enough amount to discourage this behavior.
2) Output from models & intra-datacenter communications can be encrypted if customers truly cared.
3) There is no reason do this, because there are far better ways to exfiltrate data from Anthropic models. Chinese companies are already doing this at an industrial scale where they are reselling Claude tokens for 10-20% of the cost while retaining the data to train their own models. https://www.chinatalk.media/p/how-to-buy-cheap-claude-tokens...
If we look at Deepseek V4-pro, created by Deepseek who Anthropic formally accused of harvesting Claude tokens at scale, it performs the same as Claude did 6 months prior.
If Elon REALLY wanted to do anything like that he would be better off poaching talent from competitors, less legal hell to go through.
Also possible he sees infra as the future of xAI if he really believes in the value of space compute.
Hard to see this any of this as anything other than a bearish sign for Grok though.
xAI is bleeding money and this compute deal with Anthropic will pay for all of xAI's capex ($25 billion) in 2 years.
And I'm sure it's a bonus point for Musk that it goes to OpenAI's most relevant competitor
And frankly as bad as Altman is from a: if AI is really going to disrupt humanity do I want this guy in charge? Elon is 10x worse. So why would the best and the brightest ever work for him?
Either way, I doubt he has any ‘real’ advantage in this game. It’s OpenAI and Anthropic, and then everyone else including the open weight models.
Outside of VC money, and circular financing, the only external money coming into ai are into open-ai, and anthropic via their subscriptions and APIs.
Edit: They did it with Colossus and now they're doing the exact same thing with Colossus2. https://www.selc.org/news/xai-built-an-illegal-power-plant-t...
I live about 18 miles downwind of the new Colossus sites, the airport, and lots of truck logistics sites, and a large refinery.
I definitely will be getting 2x exposure to ozone and particulates from both Colossi when they are running full bore. Plus an extra dose of ultrafine particulate with my morning fresh air.
Yes, wouldn’t it be nice to be in Nashville instead with HCA, Oracle, many insurance and financial institutions, and the joy of country music.
As an avid Opus user I am in an ethical Nimby bind. We do need almost any investments we can get in Shelby County TN. I’ll take Anthropic in preference to Grok NOx. And it will be my NOx.
Airplanes by virtue of their mode of operation stay out of the unhappy regime most of the time. Also, engines at/near idle produde orders of magnitude less emissions. Those aeroderivative generators are running at full capacity 24/7.
Dumping exhaust at ground level continuously is probably much worse than the airport. Even if it's a FedEx world hub.
It's the same datacenter? Ran by the same people?
i would expect close to no 100LL burning planes use MEM.
Some wild things happening with those, and infrasound. Colossus is shown 4 mins in
So let's say you're a homebuilder, if I tell you I want a new home and I want to live there tomorrow, you can all of a sudden build it in a day, right?
Electricity use is skyrocketing for various reasons, these datacenters being one of them. There are a lot of countries struggling to keep up with demand. So incompetence? No, probably more like supply lagging demand.
Or ASML and Nvidia and all also are incompetent, because they didn't see demand coming....
But hey, number must go up, right?
This is a joke. Read it in a mocking tone.
Undoubtedly, it will find cures to all cancers… The ARR and stock appreciation will be amazing. Except the cures will be found long after it has wiped out all humans.
If you shoot someone in the face, it will produce a meaningful increase in local/regional murder, but represent a rounding error nationally and globally.
Once xAI training team “fix” their model, where will Anthropic be then?
Until they finish training, it makes sense to rent the excess capacity.
I'm not saying it's a likely scenario, but I genuinely believe a big percentage of AI investment revolves around that (or similar) scenarios.
In the times before you also would rather have very smart people working together instead of one very smart dude alone even if he had an identical twin.
(I'm not denying it could happen next year for all we know. But we simply don't know, and from what I hear from researchers the breadth of ideas we've tried are still small)
xAI gets the cashflow and makes spaceX bottom line more appealing. But that guy Musk hardly makes deals that favor other companies over his, so what am i missing?
Grok could easily be powered by Claude in just a few weeks engineering time.
SpaceX S-1
I’d hoped Anthropic would steer clear of blatantly unethical practices but here they go in bed with that guy and his horribly damaging data center.
But booking outrageous rental fees as fake AI revenue ahead of the SpaceX IPO apparently takes precedence.
This is all real revenue, real spend, real usage.
Hetzner just aren't at this scale. Not even close. If they wanted to get into this business - first, they're late. Second, it's at a scale of ~10x of their total lifetime datacenter buildout. Third, they'd need to change their business to being one that is debt fronted.
xAI have proven out that being able to deploy compute is a very viable business (and difficult to pull off)
At some point AI cynicism clashes with reality, it must be exhausting maintaining it.
[0] https://www.wsj.com/tech/ai/mind-blowing-growth-is-about-to-...
[1] https://www.wired.com/story/spacex-ipo-anthropic-compute-fin...
He didn’t change his mind about anything. It’s just that he wants to prop up SpaceX’s IPO as much as he can. Plus if he hits various targets, he unlocks more shares for himself, I think.
