CryptoWorld News reports that former Meta Chief AI Scientist Yann LeCun said in an interview with CNBC that Elon Musk’s AI company xAI “is, to some extent, a failure,” and predicted that it will be unable to compete with OpenAI and Anthropic. He noted that, aside from Musk, the entire initial co-founder team has left, making it difficult for xAI to recruit top AI talent. To cope with cost pressure, xAI is leasing compute power from its Colossus data center in Tennessee to Google and Anthropic in order to recover infrastructure expenses. Financial data shows that xAI’s operating loss reached as high as $2.5 billion in the first quarter ended March 31, 2026. Yann LeCun warned that the current business model is overly dependent on investor funding, and that if leading labs cannot raise service prices or reduce costs, the entire AI industry could face a “big bubble burst.” He emphasized that the current LLM (large language model) approach is too expensive, and that the key for the future lies in world models.

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GateUser-fbbc916d

· 2h ago

From FAIR to Meta, then to blasting xAI—LeCun’s track record of making his case has never lost. But Colossus’s sublease really does expose a strategic contraction.

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GateUser-e4fb1fbe

· 4h ago

The core team has scattered, plus a quarterly loss of $2.5 billion—this plot is identical to what happened back then in the autonomous driving division: a talent black-hole effect at Musk-linked companies.

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DepegDaydream

· 4h ago

Renting computing power to Anthropic is so ironic—it’s like handing the opponent bullets; if xAI’s Grok can’t quickly monetize, 2026 will be even harder to get through.

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TheReflectionUnderTheNeon

· 4h ago

The Colossus data center was just built and then subleased, indicating that training costs have overwhelmed cash flow, and Grok's iteration speed clearly can't keep up with the pace.

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SummerCoast

· 4h ago

Yang Likun's words are quite harsh, but xAI renting out computing power to competitors is truly baffling, and it's hard to understand what Musk's real plan is.

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SeaSaltMarketMakingNotes

· 4h ago

LeCun says he believes in the industry bubble, but I doubt his claim that xAI will fail; after all, this person has old grudges with Musk, so his stance may not be impartial.

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Yang Likun: xAI failed, difficult to recruit talent, forced to rent out computing power

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