AI rivals are thirsty for SpaceX's compute, Elon Musk says (www.businessinsider.com)

During SpaceX's recent earnings call, CEO Elon Musk revealed that the demand for the company's computing resources has surged, with numerous AI rivals eager to rent capacity. Musk indicated that SpaceX plans to allocate about half of its compute power for internal use while offering the other half to third parties, aiming to capitalize on the increasing value of AI computing as models become more efficient. He emphasized a flexible approach, noting that rental rates would reflect the "spot market" rather than long-term contracts. Musk also highlighted a looming crisis in the availability of high-performance computing resources, particularly as AI models evolve, leading to greater efficiency in converting energy into useful intelligence. This tightening supply is expected to drive up rental prices, reminiscent of a Monty Python sketch where requests go unanswered. He mentioned that even the older Nvidia H100 chips have seen increased rental rates, indicating a robust market for powerful compute infrastructure as companies and developers race to harness advanced AI capabilities.