You're not wrong in the long term, either in general or for SpaceX.

In the long term, hopefully the market stabilizes, new entrants can challenge Nvidia etc. But of course maybe not!

However for SpaceX, this is a dead end move. They made a good decision on buying this compute when they did but they failed to use it to create a compelling model.

So they're selling access to recoup some of their investment (maybe a profit?). But what's the plan as these chips age out over the next three to five years? Become a compute company? They claim they want to... in space!

Regardless, they bought some valuable chips, failed to use them, but can now sell access and recoup over the next few years before they become outdated.