Woofun AI notes that Gavin Baker identified xAI's cloud computing division as a potentially overlooked growth vector within the Elon Musk ecosystem during the latest BG2 podcast episode. Referencing analysis by Clark, Baker argued that the cloud infrastructure agreement between xAI and Google could generate operating profits per gigawatt of computing power that surpass those of Anthropic, Meta, Google, and OpenAI.

Furthermore, Baker cited Freda's projections for the Colossus 1 project, indicating an internal rate of return approaching 55%. This margin creates a compelling financial thesis if capital is secured at rates between 6% and 8%. Consequently, Baker assessed that xAI has rapidly evolved from a non-player in AI cloud services to approximately the world's fourth-largest AI hyperscaler.