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

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

#451

Post by bko »

noir_lord wrote: post #272
tristanj wrote: post #205

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…

> Truly a brilliant deal for everyone involved. Except for people who have pensions/investments in whole market class investments who become exposed to an over valued company with a propped up value.

So your contention is what? This will crash? Surely you'll be shorting the stock right?

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

#452

Post by nullstyle »

l23k4 wrote: post #436
a2tech wrote: post #425

Earlier quoted context omitted.

My understanding is that the s&p 500 were the only ones unwilling to change their rules.

Why "unwilling"? That's a weird wording. S&P Dow Jones Indices decided to not go through with their rule change after it became a political issue. Obviously they were willing, the proposed rule change originated from them!

Please provide some support that the rule changes were proposed from within. Given the fact they tried pulling this nonsense on 3 indices, it seems very unlikely the rules changes originated from within.

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

#453

Post by dghlsakjg »

l23k4 wrote: post #438
stogot wrote: post #370

Earlier quoted context omitted.

The question on my mind is-is this IPO designed to rip off recreational passive investors and those of us that invest in retirement accounts?

How would you "design" an IPO to do that? What exactly is that even supposed to mean?

Passive investors and retirement accounts are heavily in on automatic indexing.

This deal has been pushed hard to be included prematurely in the indexes to the point that Nasdaq changed the rules.

The accusation is that these changes were made so that index funds will buy this stock automatically far earlier than they would have previously. Given the… uh… astronomical asking price, it looks like SPCEX is meant for Elon stans and institutional index investors to be the bag holders.

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

#454

Post by l23k4 »

nullstyle wrote: post #450
l23k4 wrote: post #438

Earlier quoted context omitted.

How would you "design" an IPO to do that? What exactly is that even supposed to mean?

You use your back channels and good ole boys club connections to try getting the rules for inclusion changed. Maybe collude would be a better verb than design? Is that your objection?

Can you share any credible reporting substantiating this theory?

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

#455

Post by vdfs »

BLKNSLVR wrote: post #420

And SpaceX will spend $800M per month on Nvidia hardware purchase contacts, and Nvidia will spend $700M per month on Google services. I'm picturing a teenager blowing a bubble gum bubble bigger and bigger. I assume it can go on forever!

A bubble will never pop as long as stay in it's bubble form

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

#456

Post by OtomotO »

tristanj wrote: post #205

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…

So they have followed the rainbow and found some pots of gold... And then they all lived happily ever after.

Apart from the peasants of course.

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

#457

Post by nullstyle »

l23k4 wrote: post #454
nullstyle wrote: post #450

Earlier quoted context omitted.

You use your back channels and good ole boys club connections to try getting the rules for inclusion changed. Maybe collude would be a better verb than design? Is that your objection?

Can you share any credible reporting substantiating this theory?

Common sense and rationality says that you cant motivate rules changes simultaneously across 3 independent indices without outside pressure. Can you provide some reasoning why this wouldn’t be the obvious situation?

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

#458

Post by l23k4 »

dghlsakjg wrote: post #453
l23k4 wrote: post #438

Earlier quoted context omitted.

How would you "design" an IPO to do that? What exactly is that even supposed to mean?

Passive investors and retirement accounts are heavily in on automatic indexing. This deal has been pushed hard to be included prematurely in the indexes to the point that Nasdaq changed the rules. The accusation is that these changes were made so that index funds will buy this stock automatically far earlier than they would have previously. Given the… uh… astronomical asking price, it looks like SPCEX is meant for El…

[flagged]

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

#459

Post by l23k4 »

nullstyle wrote: post #457
l23k4 wrote: post #454

Earlier quoted context omitted.

Can you share any credible reporting substantiating this theory?

Common sense and rationality says that you cant motivate rules changes simultaneously across 3 independent indices without outside pressure. Can you provide some reasoning why this wouldn’t be the obvious situation?

[flagged]

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

#460

Post by matthewdgreen »

bko wrote: post #451
noir_lord wrote: post #272

Earlier quoted context omitted.

> Truly a brilliant deal for everyone involved. Except for people who have pensions/investments in whole market class investments who become exposed to an over valued company with a propped up value.

So your contention is what? This will crash? Surely you'll be shorting the stock right?

A company can have poor fundamentals compared to its stock price, and also have an enormous P/E multiple if it has committed investors. We've seen this with multiple meme stocks and Tesla. I have no doubt SpaceX will fly high for a while and people will make a lot of money, but I don't think the company is going to make $320bn/year in AI services (with 74% profit) by 2030 as the S-1 suggests. At some point the market price will coincide with real earnings.
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