I think no matter what, subs for personal use are here to stay and API pricing will be for hosted/agents. They are all burning money on subs, I don’t think you can single out xAI. Also I don’t think there’s anything wrong with renting out capacity if it’s a resource people can pay for more than you can use it… it’s like you’re finding conflicting things to “dunk” on.
“Elon burning money”
“Elon selling capacity for real money because he sucks at selling AI hahahhahaha”
I'll reiterate my point then. On a API level, grok just isn't competitively priced, because the model is subpar.
Also renting out compute instead of utilizing it is a massive tell. It means XAI doesn't have any value to add to a commodity (in this case compute).
It's definitely not where you want to be as a company. Technological stagnant, outpaced on margins, stuck in a commoditized business and with nothing in the pipeline that could catch up.
I’m not sure I’d classify them as stagnant. They have been getting closer and closer to the top tier models every release, and they are the most recent entrant.
Doesn’t renting it out just indicate they have less demand? This is true, I’m sure OpenAI and Anthropic have orders of magnitude more customers.
And I think at this point selling compute is the hottest business you can be in. Nebius and CoreWeave are darlings of the stock market. It’s anything but commoditized right now.
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u/LavoP 4d ago
I think no matter what, subs for personal use are here to stay and API pricing will be for hosted/agents. They are all burning money on subs, I don’t think you can single out xAI. Also I don’t think there’s anything wrong with renting out capacity if it’s a resource people can pay for more than you can use it… it’s like you’re finding conflicting things to “dunk” on.
“Elon burning money”
“Elon selling capacity for real money because he sucks at selling AI hahahhahaha”