Google to pay SpaceX $920M a month for compute capacity at xAI data centers

Post by jjtheblunt » Fri, Jun 05, 2026, 9:13 PM UTC

sandeepkd wrote: post #29

JumpCrisscross wrote: post #6

Earlier quoted context omitted.

> Circular financing Circular financing would require SpaceX to buy a similar quantity of stuff from Google. (Or invest in Google.) We have no evidence of that. Instead this looks like Google taking advantage of SpaceX’s desire to print revenue today versus a month from now. (If the agreement is terminated with no exchange of goods, it might be market manipulation. But still not circular financing.)

> Alphabet has made a windfall from backing SpaceX. Musk’s company was worth $12 billion at the time of Google’s 2015 investment How come its not a circular deal where google is investing little bit more money to make a whole lot more money

Post by SlinkyOnStairs » Fri, Jun 05, 2026, 9:13 PM UTC

singron wrote: post #28

JumpCrisscross wrote: post #6

Earlier quoted context omitted.

> Circular financing Circular financing would require SpaceX to buy a similar quantity of stuff from Google. (Or invest in Google.) We have no evidence of that. Instead this looks like Google taking advantage of SpaceX’s desire to print revenue today versus a month from now. (If the agreement is terminated with no exchange of goods, it might be market manipulation. But still not circular financing.)

It's circular since Google owns part of SpaceX. According to [1] they own 7% of SpaceX, so a $1.75T IPO would value their stake at $120B. The target IPO price is >90x revenue, so if Google increases SpaceX's revenue by $11B, SpaceX's valuation could increase by $990B to maintain the same multiple, which would increase the value of Google's stake by $69B. 1: https://finance.yahoo.com/markets/stocks/articles/alphabet-s…

Post by harmmonica » Fri, Jun 05, 2026, 9:15 PM UTC

jeffbee wrote: post #27

harmmonica wrote: post #18

Tangent alert: a couple of questions for folks who know far more than I do about compute capacity and Google these days... Lately, like the past few months, I've noticed Google services (search, gmail, drive, maps) running very slowly to the point where, at the moment it happens, I always think it has to be my connection and not Google, but sure enough every time I check a couple of speed tests and they're... fine. A…

Do you still perceive search and maps to be slow even when logged out?

Post by nikcub » Fri, Jun 05, 2026, 9:16 PM UTC

guywithahat wrote: post #36

root-parent wrote: post #22

Earlier quoted context omitted.

Who uses Grok? Not even SpaceX engineers that is known...

I've used/use it. For a while it had one of the best lightweight coding LLM's, which actually lead to a #1 spot on openrouter usage ranking although they've fallen off the top 10 used now. It's also provided some good reasoning models, which perform better when dealing with non-PC topics. Also, although I've never used it for this, I believe some of the paid models produce some of the best "adult" content, and I know…

Post by cameldrv » Fri, Jun 05, 2026, 9:17 PM UTC