Jesus Christ, the Hetzner example is obviously an example of booking revenue as AI revenue (where investors assume it is generated by Grok subscriptions) vs. hardware rental revenue, which traditionally not valued as highly.

Nowhere does the hypothetical state that Hetzner, an example for hardware rental, has the funding or the capabilities to execute the sarcastic example.

But ok, now hardware rentals have a P/E of 100 or more.

Investors aren’t dumb. These numbers are being reported and the fact that the data centers are being rented out is publicly disclosed everywhere. Investors know full well that the revenue is from the data center rental. No (non-retail) investor is going to see the jump in revenue and think “I better buy up because grok must be kicking ass!”

And yes, if hetzner built a massive AI hyper scale datacenter and rented it out for billions, with the expectation that they would keep building more, they would also see massive PE ratios because it’s expected that their revenue would be going up.

I think you're low at 100. TSLA has 370 PE, and SpaceX is targeting 250+.