AI rivals are thirsty for SpaceX's compute, Elon Musk says

SpaceX's AI rivals are clamoring to rent computing power from the synthetic intellect and missile company, CEO Elon Musk said.

"We are also, frankly, hounded relentlessly by all hyperscaler and by dozens of smaller companies to rent additional of our compute," Musk stated during SpaceX's third-quarter earnings call Tuesday.

Musk stated SpaceX could rent out the company's compute "several times complete if we stated yes to everyone."

SpaceX, however, is reserving a chunk of that capability for its own AI ambitions, including scaling its AI chatbot Grok and Cursor, the coding startup it lately acquired.

Musk stated SpaceX is seeking to dedicate approximately fractional of its compute to inner uses and rent out the another fractional to third parties. That balance could alter duration to month, he said.

"It's going to be dynamic," stated Musk. "And obviously, our method is to rent at the — efficiently the place market charge as opposed to sign these long-term deals."

The business expects the value of compute to addition as AI models enhance and ultimately create "more helpful intellect per watt," stated Musk.

"And the value of that compute is proportionate to the helpful intellect per watt," Musk said, adding that rental rates for older Nvidia H100 chips have climbed from whenever they were new.

"I think that's apt to continue," stated Musk. "I think we're going to visage a deficit of excellent intellect compute. And that deficit is going to remain for a lengthy time."

Musk likened the circumstance to Monty Python's famed dairy merchandise shop sketch, in which a client often asks for distinct cheeses lone to discover that none are available.

"We've really tried to offload several of our conclusion compute to another haze providers so that we can use additional compute for training," the CEO said. "And we get the dairy merchandise shop sketch."