tech
SpaceX reportedly rented out Colossus 1 AI data center after it ran into latency issues.
While SpaceX plans satellite-based AI servers, Bloomberg reports it ran into trouble trying to develop and run Grok AI in Memphis, citing unnamed sources. They claim that deals renting capacity to Anthropic ($15 billion annually) and Google ($920 million per month) happened following hardware variation and lag issues:

TL;DR
- SpaceX encountered latency issues attempting to develop and run Grok AI in Memphis.
- The company planned to use a cluster of three data center campuses for its AI models.
- Latency problems arose when connecting Colossus 1 with sites over 10 miles away.
- Aging network infrastructure compounded the connectivity issues.
- Deals to rent data center capacity to Anthropic and Google reportedly followed these issues.