251–260 of 1001 posts
This is a masterful piece of financial engineering by Google and SpaceX. Google purchased 10% of SpaceX over a decade ago. After dilution they probably own around 5%. SpaceX is valued at a whopping 94x revenue. This deal increases SpaceX's revenue by $11 billion per year. If SpaceX maintains this revenue multiplier, then this single deal boosts SpaceX's valuation by 94 x 11 billion = $1 trillion dollars. Google owns…
A huge chunk of SoaceX value in their filing is attributed to their AI technology (aka Grok). I believe it’s 90% or more… Now, it seems they’re leasing the infrastructure required for Grok to scale to Anthropic and Google. I wonder how that math works…
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This is all just the typical Elon hate. What's desperate about getting paid $920,000,000 per month? If that's desperation, I'd love to start groveling more! Given extreme supply constraints, it's very unlikely that Google or Anthropic will just suddenly cancel right after the IPO unless their own demand collapses. And even if this were true, what value would that provide Musk? Could you imagine if your newly public c…
I have no love or hate for Elon Musk. I wish him luck with his space endeavours. What's desperate is announcing a temporary (allegedly) doubling of revenues days before an IPO that has been criticised for being overpriced at 93 times sales. These data centers were supposed to serve xAI. Now suddenly they get rented out to others. Why the sudden change of plans? It's either an emergency accounting gimmick or the effec…
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> SpaceX is trading at a whopping 94x revenue. This deal increases SpaceX's revenue by $11 billion per year. If SpaceX maintains this revenue multiplier, then the single deal boosts SpaceX's valuation by 94 x 11 billion = $1 trillion dollars. That final number doesn't make sense: if you're trading shares at $X revenue, increasing the revenue by $Y multiplier doesn't increase the share price by the same multiplier.
You're right. Share price isn't based purely on a multiplier of current revenue.
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Space-based datacenters simply won't work. That people are talking about them shows Musk is the greatest snake oil salesman the world has ever seen.
Can anyone explain how the thermals will work? One of the biggest challenges on Earth is cooling the data center, and it's at least as challenging in space.
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I felt the same way about the "tube with an air hockey table in it." But here I am fifteen years later eating crow as I take the hyperloop to Vegas.
Isn't the Vegas Loop just a car tunnel? As far as I know, there aren't any actual hyperloops[1] involved, just a narrow highway, even if they deceivingly brand it "Loop". https://en.wikipedia.org/wiki/Hyperloop
“If we fail to deliver access to the committed amount of GPUs by September 30, 2026, then following a one-month grace period, Google may immediately terminate the agreement or accept the number of GPUs provided, with a corresponding pro rata reduction in the monthly fees. After December 31, 2026, the agreement may be terminated by either party upon 90 days' notice.” https://www.sec.gov/Archives/edgar/data/1181412/000…
Of course this is a real deal. Compute is the most valuable resource in the world for these companies at the moment.
What exactly is SpaceX's core business?
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SpaceX has recently started pitching itself as an orbital datacenter company. If you buy into that business model (or pretend to), it makes sense for SpaceX to start selling compute early. Their "earthside compute" clients of today are "skyside compute" clients of tomorrow. A part of Musk's old pitch for Starlink was: space-based solar makes perfect sense for powering space assets, and no sense whatsoever for powerin…
Why would it ever be more economical to put datacenters in orbit, rather than on some dirt cheap land?
It is definitely to escape most political pressures on Earth. They will never be able to sidestep the US feds, but aside from an open war with China or Russia, all other authorities are out of the game when it comes to space.
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> Google renting infra from xAI, I did not see that coming. Actually that seems to be fairly logical? Hardware is what xAI has , and it's in great demand. So sell what makes you money. The real story here is that that xAI hardware is going to be running Gemini and not Grok. Which is to say: Grok basically failed as a frontier AI and they need to pivot to a business model which makes money. Obviously not everything Mu…
> Which is to say: Grok basically failed as a frontier AI and they need to pivot to a business model which makes money. They can just run Grok as a local AI inside Tesla cars. It's actually really efficient as a compute platform because the Tesla cars are in motion at highway speeds, which gives you lots of free airflow for shedding waste heat via the car radiator. Way more efficient than trying to run AI on space sa…
If they could train using Teslas they wouldn't have needed Dojo.