Yesterday in AI: 06 June 2026 — Google Pays $32B for xAI's Idle GPUs

TL;DR — Google will pay SpaceX $920M/month $32B total for 110K idle Colossus 1 NVIDIA GPUs after xAI's mixed-GPU cluster ran at just 11% utilization; Claude Code v2.1.166 patches a cross-session privilege escalation and adds three-model failover; PewDiePie's self-hosted AI workspace Odysseus crossed 55,000 GitHub stars in six days. --- 1️⃣ Google Rents xAI's Stranded Supercomputer for $32 Billion - What: SpaceX disclosed a $920M/month compute deal with Google in its S-1 filing; the GPUs are inside xAI's Colossus 1, which was training Grok at just 11% model FLOPs utilization. - Why it matters: A competitor's supercomputer—built to train Grok—is now running Google's Gemini workloads, a stark illustration of how compute oversupply at one lab becomes revenue for another. - Key number: $32 billion — total deal value from October 2026 through June 2029. xAI built Colossus 1 with an eclectic mix of H100, H200, and GB200 GPUs that couldn't be parallelized efficiently for Grok training. The result was 11% model FLOPs utilization against a 35–45% industry production-grade benchmark. xAI shifted Grok training to Colossus 2 and SpaceX turned Colossus 1 into a revenue source, disclosing the arrangement in an amended S-1 ahead of its planned Nasdaq IPO. Google will pay $920 million per month starting October 2026, with a ramp-up period through September at a reduced fee, for roughly 110,000 NVIDIA GPUs plus CPUs and memory. The purpose: bridge capacity for Google Cloud's Gemini Enterprise agent platform, which is growing faster than projections. The deal runs to June 2029, with 90-day termination clauses for either party after year one. The deal comes weeks after Anthropic also secured Colossus 1 capacity 220,000 GPUs, $1.25B/month through May 2029. SpaceX has now monetized the same physical facility twice—once to each of OpenAI's two main rivals. 📎 CNBChttps://www.cnbc.com/2026/06/05/google-to-pay-spacex-920-million-a-month-for-xai-compute-capacity.html · TechCrunchhttp