xAI Bets on Leasing Data Centers Over Owning a Frontier Lab, Says Investor
PaulYacoubian · x · 2026-10-08
Paul Yacoubian argues Elon Musk realized leasing data centers is a better business than owning a frontier lab: xAI raises equity at frontier-lab multiples to invest in chips, then raises all available debt and equity, leaving frontier labs begging for compute capacity.
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