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

cnbc.com

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

#541

Post by bmitc »

nrmitchi wrote: post #511
raincole wrote: post #348

Earlier quoted context omitted.

Financial shenanigans aside, xAI seems to be buying hardware at breakneck speed. So why not? https://techcrunch.com/2026/05/20/musks-xai-is-being-sued-ov...

IIRC the large majority of their hardware (at least one tranche, they might have gotten more later) was Elon effectively stealing it from Tesla for xAI, saying “I’m personally doing Tesla a favor, since they can’t fully utilize it currently”, and is now renting that (stolen) compute to subsidize SpaceX.

Musk is a walking and talking financial fraudster and criminal and somehow keeps getting away with it.

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

#542

Post by dingaling »

missedthecue wrote: post #324
theturtletalks wrote: post #287

Earlier quoted context omitted.

Do companies like Uber, Tesla, etc ever intend to pay dividends? If a stock never intends to pay dividends, the value of the stock is simply the price the next shumck is willing to pay.

The value of the stock is your share in the underlying business. Because underlying business changes over time (hopefully for the better) you are not simply hoping another shmuck pays you more, like with tulips, whose underlying value does not change with time. You own a portion of a concern that is improving its own fortunes. Furthermore, dividends are approved by the board once per quarter or once per year. A divid…

> The value of the stock is your share in the underlying business.

Which for most investors with Class C/D shares is... the square root of zero.

They assert no control over the business, the only way to benefit from the stock is to find another shmuck to buy it at a higher price.

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

#543

Post by hectdev »

Lplololopo wrote: post #439
tjwebbnorfolk wrote: post #372

Earlier quoted context omitted.

It's not that ridiculous considering these are the current facts on the ground.

The Facts: Tesla wasted billions for Cybertruck, hasn't had a new real model for years, promises Full Selfdriving without supervision for a decade and other companies are either on the same level or better. xAI has such a shitty AI, that he makes more profit renting his Compute instead of making profit directly from it as the companies doing who have better AI then him. Space-X is a limited business and he tries to m…

I'm just as dumbfounded about Tesla's stock value vs what it does in the market and will trash talk Elon all day long but SpaceX is a different beast. I know of whole industries that are just waiting for the ability to get more stuff into space for less. The company will succeed despite him once Starship is established.

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

#544

Post by ozgrakkurt »

missedthecue wrote: post #424
ozgrakkurt wrote: post #404

Earlier quoted context omitted.

This makes no sense. Why doesn’t the “underlying value” of tulips change? “Underlying value” is a meaningless word btw

The underlying value of a tulip is the same as it was in 2000 and 2026. The underlying value of Google is much different in that same time frame.

There is no underlying value. It is only how much other people are willing to exchange for it.

So stock marked is always meaningless except considering it is so large and consequanetial and so many people have access to it that it will be rational automagically. This is more of a belief that seems to be fairly correct than a rational line of thinking. This is similar to Democracy in a way

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

#545

Post by dtj1123 »

jonas21 wrote: post #375
dtj1123 wrote: post #129

380 dollars per second... Good to know I could afford my own data center for an appreciable fraction of a minute.

Why would you want to own your own giant datacenter? What would you do with it? Of course it's expensive to operate a datacenter that serves millions of people.

I was actually surprised by how low the per-second rate is.

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

#546

Post by LeoPanthera »

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…

> Google spends 10 billion and makes 50 billion, $40 billion profit.

And gets a datacenter.

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

#547

Post by bmitc »

robmccoll wrote: post #229
embedding-shape wrote: post #203

Earlier quoted context omitted.

But what is xAI? I thought that was the company that had the compute + Grok, the AI company? Since when does SpaceX (which I thought was a space company?) own AI-compute hardware and/or can do model hosting? Are all of Musks companies just one big thing now where the names no longer matter, or how is it supposed to work? Edit: seems I'm just a bit behind: "xAI — now part of SpaceX ", seems really strange for a space…

Musk sold Twitter into xAI which he then sold into SpaceX as a financial engineering effort to lessen the impact of massive debts and cash burn. The IPO and some clever structuring is the final step in the process.

I.e., fraud.

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

#548

Post by senordevnyc »

solenoid0937 wrote: post #507
davedx wrote: post #484

Earlier quoted context omitted.

Start gradually converting your equity to bonds is the standard advice on that timeframe. If you're dreading equity drawdowns, that's what fixed income is for.

This is absolutely terrible advice and is out of touch with modern financial understanding. Bonds feel psychologically safer, but lead to failure more often than total market equity portfolios, even when you account for market crashes. https://youtu.be/p25PPBgMiEk

I always thought the psychological safety was exactly part of the point, since 100% equity portfolios do better in theory than practice, because people are more likely to panic sell.

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

#550

Post by l23k4 »

bombcar wrote: post #530
l23k4 wrote: post #463

Earlier quoted context omitted.

It is what S&P Dow Jones Indices themselves say, so the burden of proof to prove otherwise must fall on you. And anyway, the rule change is truly the only reasonable way they can react to the current situation. It will absolutely be untenable to keep Anthropic , OpenAI and SpaceX off the S&P 500 with them also being the highest valued companies on the market.

If I were the DJI I would have proposed the change, simply so that we could get some outrage flowing and shut it down. Without the proposal, you'd have outrage out the other side that it wasn't included (especially if it shoots off like, well, a rocket).

But why? Won't that just make it far more awkward when they're inevitably forced to go through with very similar changes in the end?
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