Colossus: the $100B AI factory where renting compute is the least valuable use
mitchdeg · x · 2026-09-27
CernBasher publishes an analysis of xAI's Colossus cluster, estimated at $100 billion, framing its economic value in two ways: the simplest is what it would earn if xAI merely rented out the GPUs. His argument: renting compute may be the least valuable use of the asset. Commenter mitchdeg adds that AI will create far more economic value than currently anticipated.
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