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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

#581

Post by adgjlsfhk1 »

LeoPanthera wrote: post #546
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.

that's the best part they might not, and don't really care. they've already made $30b when is the dc never shows up

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

#582

Post by overgard »

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…

"Clever" is not a word you want to hear in front of accounting..

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

#583

Post by tjwebbnorfolk »

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…

Ok, you might be right about all of that. None of that changes the actual fact on the ground that the IPO valuation is currently being set at nearly 100x sales, and for god-knows-what-reason, enough people appear to be willing to actually pay it in order to justify that valuation.

Go argue with the entire market. I'm just the messenger.

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

#584

Post by rbanffy »

timeflex wrote: post #568
l23k4 wrote: post #508

Earlier quoted context omitted.

[flagged]

No where did they say anything antisemitic, but you further diminishing the meaning of that word—just like BB has already—only enables actual antisemitism. I frequently see that label being weaponized, especially against other Jews. I see it be used when people merely report on what the President has said, or against the Pope calling for peace. At some point, I'm inclined to believe people constantly making these fal…

> I'm inclined to believe people constantly making these false accusations do so knowing it delegitimizes the word.

I’d say it’s 50/50. Half of them try to delegitimise the word while the rest use it to silence dissent against what amounts to be a genocide and a land grab.

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

#585

Post by krupan »

marcosdumay wrote: post #476
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.

US companies normally do stock buy-backs instead. It is a way to distribute the money to the investors, that their tax system favors.

There are lots of US companies that pay dividends. Another commentor lists some tech companies that do, and there are lots of other types of businesses that do. A quick internet search will give you a list.

You are correct that stock buybacks are another way that companies reward their shareholders.

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

#586

Post by adgjlsfhk1 »

PeterStuer wrote: post #366
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 SpaceX is selling inference capacity. Who else is? What were the competing offers for Google and Anthropic?

anthropic isn't selling capacity. they're using all of theirs and more

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

#588

Post by dangus »

pqtyw wrote: post #474
tjwebbnorfolk wrote: post #372

Earlier quoted context omitted.

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

Well... AOL had rather extreme aspirations and a massively overvalued market cap during the internet boom as well. So yes, ridiculous things like that happen and markets are very often not rational at all (short and medium term at least). Nortel, Sun, AOL, Cisco were all very innovative and rapidly growing companies. Until reality kicked in.

While you’re not wrong at all in the concept of your post, I wouldn’t call AOL a particularly innovative company. They basically innovated once and then went straight into lazy rent-seeking for the rest of their existence.

I don’t know if I would put Cisco or Nortel in that category, either. They were like gold rush pickaxe companies. The pickaxes themselves weren’t particularly innovative in their case.

A lot of the innovative companies from the dot com era are still around.

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

#589

Post by rbanffy »

bombcar wrote: post #537
HarHarVeryFunny wrote: post #414

Earlier quoted context omitted.

As I recall isn't Starlink revenue at least 3x Space revenue, so not sure how they are characterizing that 3:1 ratio as 3% vs 4% ! The "93% AI company" is also a huge mischaracterization since this isn't AI business - it's datacenter/GPU leasing business which their 2 customers can pull the plug on with 90 days notice.

Does Starlink pay SpaceX for launches?

For SpaceX it’s critical to maintain a steady cadence. If they don’t, they lose institutional knowledge. If the cadence drops below a point, their effectiveness at reusing rockets will also drop, defects will creep in, and they’ll have higher fleet churn.

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

#590

Post by toraway »

nickpsecurity wrote: post #246

Cloud companies were made to sell others compute. Now, one is buying billions of compute from SpaceX, a rocket company. That sounds so backwards lol. Great work by Musk and his companies to be in a position to sell billions to cloud vendors. I'd have probably missed that opportunity while trying to build great rockets or AI models.

  > while trying to build great rockets or AI models
This deal was only possible because xAI isn't building great AI models with actual customers leaving most of their compute sitting unused.
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