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Financial shenanigans aside, xAI seems to be buying hardware at breakneck speed. So why not?

https://techcrunch.com/2026/05/20/musks-xai-is-being-sued-ov...



IIRC the large majority of their hardware (at least one tranche, they might have gotten more later) was Elon effectively stealing it from Tesla for xAI, saying “I’m personally doing Tesla a favor, since they can’t fully utilize it currently”, and is now renting that (stolen) compute to subsidize SpaceX.


Musk is a walking and talking financial fraudster and criminal and somehow keeps getting away with it.


Someday, Americans may punish him with a presidency.


Not unless the constitution changes first. You have to be born in America to run for president.


If you bribe five members of the Supreme Court, the Constitution can be whatever you want it to be.


Sure, and Denmark might sneak attack Maine. But what’s the point of wild speculation.


You're acting like the landscape of law hasn't changed and been affected drastically by the purchased Supreme Court justices. That has literally happened. It's not a hypothetical or speculation.


I’m not. But this particular example is so beyond the pale for everyone, that it simply isn’t going to happen.


If I had a few dollars for every time I heard “that’s so beyond the pale, it couldn’t possibly happen”, I would be buying some more RAM for my homelab right now.


Because hardware depreciates quickly, datacenter rentals are a competitive business with much lower profit margins than the IPO prospectus requires (even if there is a temporary bottleneck now) and there's no real moat.


The original batch was probably Musks "AI will solve everything, i have a small dick, i want to buy all the hardware and be the first" which became "Ah shit Grok doesn't need all the compute, we can't sell it properly our IPO is coming soon we need better numbers.

And

"Shit why did we agree to buy so much hardware if i can't even use the current one fully?"

to

"Ah fuck it, who cares if i indirectly pivot to selling this compute. It brings money and my Fanboys probably think its some magic smartness and not just ignorance"




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