xAI quietly pivots to cloud (reportedly 'SpaceXAI') as Grok loses traction

xAI is moving training to Colossus 2 and pivoting to selling cloud capacity from its original Memphis facility — reportedly rebranding as 'SpaceXAI' — after Grok failed to gain frontier-model market traction. The original Colossus 1 site is the same compute Anthropic just contracted. Ethan Mollick called it a 'blow to the idea Grok will remain a frontier model.'