Elon Musk's AI push looks like one of the costliest bets in tech.

Training frontier AI models at xAI's Colossus, a massive AI supercomputer cluster located in Memphis, Tennessee, required enormous capital, massive energy consumption, and a race against much larger incumbents already monetizing enterprise demand. Ark Invest CEO Cathie Wood said one strategic shift may have radically changed the economics behind the business.

xAI, which Wood referred to as "SpaceXAI", is pivoting from "massive losses at Colossus to significant profitability as a neocloud" thanks to its deal with Anthropic and what she estimated could become $5 billion to $6 billion-plus in annualized revenue.

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The Infrastructure Pivot

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