All posts tagged: Compute

Google will pay SpaceX 0M per month for compute

Google will pay SpaceX $920M per month for compute

SpaceX has lined up another compute deal ahead of its historic IPO, this time with Google. The company announced the deal in a regulatory filing on Friday. Under the terms of the deal, Google will pay SpaceX $920 million per month from October 2026 through June 2029 for access to “approximately 110,000 NVIDIA GPUs, CPUs, memory, and other related components.” The deal is similar in length and scope to the one SpaceX announced with Anthropic in late May. As part of that deal, Anthropic agreed to pay SpaceX $1.25 billion per month through 2029 to rent all the available compute from its Colossus 1 data center near Memphis, Tennessee that xAI — now part of SpaceX — originally built for its own artificial intelligence efforts. Google’s deal appears to be paying for roughly half the amount of compute that Anthropic has access to at Colossus 1. SpaceX didn’t say which specific data center Google would be using. CEO Elon Musk has previously suggested his company would reserve the Colossus 2 data center for xAI. Anthropic …

Alphabet plans to raise B to pay for AI buildout

Alphabet plans to raise $80B to pay for AI buildout

Google parent company Alphabet said Monday that it plans to raise $80 billion to help pay for the massive AI infrastructure buildout it has planned. Alphabet will sell off that amount in stock and will then use the funds to pay for “general corporate purposes, including capital expenditures to scale AI infrastructure and global compute,” the company said in a statement. Part of the plan involves selling $10 billion in stock to Berkshire Hathaway, the massive global holding company formerly led by Warren Buffett. “The company is experiencing strong demand for its AI solutions and services from enterprises and consumers, at levels that are exceeding the company’s available supply,” Alphabet said in its statement. “By scaling its investments, the company seeks to expand its foundational infrastructure to support the significant growth opportunity ahead.” The company added that the stock plan represented a way to “fund its investments in a balanced way while retaining a healthy balance sheet.” Like other tech giants, Google has announced plans for a massive investment in compute this year, the likes …

Musk: SpaceX Is Actively Seeking More AI Compute Customers, After Anthropic Deal

Musk: SpaceX Is Actively Seeking More AI Compute Customers, After Anthropic Deal

By Sebatsian Moss of Data Center Dynamics SpaceX’s xAI subsidiary is looking to score more data center compute lease deals, after it sold all of the capacity of Colossus I to Anthropic. That deal will see Grok’s competitor pay $1.25 billion a month over the next three years for the 300MW facility. The deal can be terminated by either party, with 90 days’ notice. “As the recently expanded partnership with Anthropic demonstrates, SpaceX is offering AI compute as a service at significant scale,” CEO Elon Musk said. “We are in discussions with other companies to do the same. “Over time, especially with orbital data centers, we expect to serve AI at extremely high scale.” In April, AI code editing startup Cursor announced that it would also be using space at xAI data centers – although SpaceX is set to acquire the business within 30 days of its IPO. SpaceX is expected to go public on June 12, with the company looking to raise upwards of $75 billion. IPO documents reveal that xAI spent $12.7bn on AI infrastructure in 2025, …

How to build custom reasoning agents with a fraction of the compute

How to build custom reasoning agents with a fraction of the compute

Training AI reasoning models demands resources that most enterprise teams do not have. Engineering teams are often forced to choose between distilling knowledge from large, expensive models or relying on reinforcement learning techniques that provide sparse feedback. Researchers at JD.com and several academic institutions recently introduced a new training paradigm that sidesteps this dilemma. The technique, called Reinforcement Learning with Verifiable Rewards with Self-Distillation (RLSD), combines the reliable performance tracking of reinforcement learning with the granular feedback of self-distillation.  Experiments indicate that models trained with RLSD outperform those built on classic distillation and reinforcement learning algorithms. For enterprise teams, this approach lowers the technical and financial barriers to building custom reasoning models tailored to specific business logic. The problem with training reasoning models The standard method for training reasoning models is Reinforcement Learning with Verifiable Rewards (RLVR). In this paradigm, the model learns through trial and error, guided by a final outcome from its environment. An automated verifier checks if the model’s answer is right or wrong, providing a binary reward, such as a 0 …

Train-to-Test scaling explained: How to optimize your end-to-end AI compute budget for inference

Train-to-Test scaling explained: How to optimize your end-to-end AI compute budget for inference

The standard guidelines for building large language models (LLMs) optimize only for training costs and ignore inference costs. This poses a challenge for real-world applications that use inference-time scaling techniques to increase the accuracy of model responses, such as drawing multiple reasoning samples from a model at deployment. To bridge this gap, researchers at University of Wisconsin-Madison and Stanford University have introduced Train-to-Test (T2) scaling laws, a framework that jointly optimizes a model’s parameter size, its training data volume, and the number of test-time inference samples. In practice, their approach proves that it is compute-optimal to train substantially smaller models on vastly more data than traditional rules prescribe, and then use the saved computational overhead to generate multiple repeated samples at inference. For enterprise AI application developers who are training their own models, this research provides a proven blueprint for maximizing return on investment. It shows that AI reasoning does not necessarily require spending huge amounts on frontier models. Instead, smaller models can yield stronger performance on complex tasks while keeping per-query inference costs manageable …

Allbirds Is Pivoting to AI Compute. Sure, Why Not

Allbirds Is Pivoting to AI Compute. Sure, Why Not

On April 7, Allbirds sent out a press release celebrating its new “canvas cruiser” collection and a partnership with Pantone, the color company. One week later, on April 15, Allbirds sent out a press release announcing that the brand will “pivot its business to AI compute infrastructure.” AI comes at you fast. In fairness, it’s been an eventful month for Allbirds. The startup’s fall from grace has been long-brewing and well-documented, but here’s the short version. While its comfortable-yet-presentable footwear propelled it to a $4 billion valuation when it went public in 2021, its sales never quite matched the hype. After years of financial losses, it finally sold whatever was left of its intellectual property to American Exchange Group, a “brand management” company that also owns the likes of Aerosoles and Ed Hardy. The price: $39 million. That was March 30. And now? American Exchange Group will presumably work to revitalize the Allbirds apparel business, starting with those canvas cruisers. But Allbirds itself will focus its efforts on turning a $50 million cash infusion (or …

The largest orbital compute cluster is open for business

The largest orbital compute cluster is open for business

For all the hype about data centers in space, there just aren’t very many GPUs up there. As that starts to change, the near-term business of orbital compute is starting to take shape. The largest compute cluster currently in orbit was launched by Canada’s Kepler Communications in January, and boasts about 40 Nvidia Orin edge processors onboard 10 operational satellites, all linked together by laser communications links. The company now has 18 customers, and announced its newest on Monday — Sophia Space, a startup that will test the software for its unique orbital computer onboard Kepler’s constellation. Experts expect that we won’t see large-scale data centers like those envisioned by SpaceX or Blue Origin until the 2030s. The first step will be processing data that is collected in orbit to improve the capabilities of space-based sensors used by private companies and government agencies. Kepler doesn’t see itself as a data center company, but as infrastructure for applications in space, CEO Mina Mitry tells TechCrunch. It wants to be a layer that provides network services for …

Why Chinese AI Labs Are Falling Behind on Nvidia Compute

Why Chinese AI Labs Are Falling Behind on Nvidia Compute

Chinese AI development is facing significant hurdles, particularly in comparison to advancements in the United States. According to Caleb Writes Code, one major factor contributing to this disparity is the limited access Chinese labs have to state-of-the-art computing hardware, such as NVIDIA’s Gro 3 LPU and VR Rubin NVL72 modules. These systems are critical for achieving efficiency and scalability, yet their restricted availability has left Chinese labs dependent on older, less capable technology. This technological gap not only hampers innovation but also increases operational costs, further widening the divide between Chinese and U.S. AI research. Gain insight into the economic and technological challenges confronting Chinese AI labs, including the impact of hardware limitations on research progress. Explore the strategic advantages that advanced hardware provides to U.S.-based labs, allowing faster development and cost efficiency. Understand the broader implications of these trends for global AI competition and the potential long-term effects on innovation across the field. U.S. Dominance in AI TL;DR Key Takeaways : U.S. AI labs are dominating the global AI landscape due to superior access …

ByteDance’s AI Ambitions Are Being Hampered by Compute Restraints and Copyright Concerns

ByteDance’s AI Ambitions Are Being Hampered by Compute Restraints and Copyright Concerns

Move over Sora 2, there’s a hot new AI video model in town. In early February, ByteDance unveiled Seedance 2.0, a major upgrade to its flagship video model, which had previously remained fairly obscure. Its powerful capabilities immediately shocked the AI ecosystem in China, even among audiences who had once been skeptical of AI-generated video and viewed the technology mainly as a way to produce slop. Feng Ji, the founder of Game Science, the studio that developed China’s global hit video game Black Myth: Wukong, wrote online that he was “deeply shocked” by the model’s abilities and believed Seedance 2.0 would pose significant challenges to China’s current copyright regulations and content moderation systems. Pan Tianhong, who leads a Chinese professional video production studio with over 15 million followers on social media, posted a video in which he said Seedance 2.0 is significantly better than any video-making models that came before it. “It thinks like a director,” Pan said. However, most people can’t get their hands on the model at this moment because access remains fairly …

£76m for national compute to solve critical industry challenges

£76m for national compute to solve critical industry challenges

UK Research and Innovation (UKRI) has announced a £76m investment to launch four new National Compute Resources (NCRs). Major funding for national computing will provide the powerful “digital engines” needed to solve some of society’s biggest challenges, from healthcare to climate change. Science and Technology Facilities Council (STFC) Programme Director Richard Gunn explained: “This investment marks a pivotal moment in our mission to build a world-class, integrated compute ecosystem for the UK. “By establishing these four National Compute Resources, we are delivering directly on the ambitions set out in the 2025 UK Compute Roadmap and providing the ‘cornerstone’ infrastructure needed to push the boundaries of British research.” A new era for UK research This £76m public investment is the first major step in delivering the UK Compute Roadmap, a national plan launched in July 2025 to make the UK a global leader in high-tech research. While supercomputing was once reserved for niche technical fields, these four new resources are designed for everyone in the research community. Whether a scientist is mapping the human genome, an …