How does this get them a government contract?

the way the crony capitalism economy works, it will bankrupt all of us well before it does the AI companies...

There's a difference between "infeasible given materials and manufacturing capabilities of the time" and "infeasible as a scalable solution due to the laws of physics"

Almost no one said those were impossible, just hard. This is completely different. Rather like... a train in a vacuum tube hard. Definitely harder than making a subway with autonomous trains under a modern city. And much harder than being a third rate AI lab, though Elon did hit that target perfectly.

Is the starlink constellation profitable on its on without any cross subsidization from any other Musk endeavor?

From the SpaceX S-1: "For launches of our Starlink satellites, the Company does not recognize any inter-segment revenue, rather those launch costs are capitalized in satellites in Property, plant, and equipment, net." In plain terms: SpaceX's rocket division charges outside customers roughly $102 million per Falcon 9 launch — but it charges Starlink $0.

SpaceX appears to be heavily subsidizing Starlink in the launch cost sense.

There is a mix of clever and sketchy accounting going on in Muskworld making it hard to see which elements profitable/sustainable and what isn't.

This is not about something being impossible, but something that solves no problem except keeping launchers busy.

The only reason I can imagine for space-based data storage is being out of reach of most police investigators. Recently, a very corrupt banker in Brazil was arrested and his phones were confiscated and, up to now, two have been cracked, with a big effect on the approaching election. If the thing is in orbit, it's a lot harder to confiscate it.

I used to make similar arguments.

But I also now look at actual results, and they are not merely late, they are far less than promised.

Globally competitive EV? Not against the Chinese competitors (Hint: it's why he plans to merge Tesla into SpaceX). Self-driving so good cars would be assets you could run your own self-driving Uber-like service (and customers paid a $10K upcharge for the ticket to do it next year)? NOPE, Tesla can't even do their own self-driving reliably. And whatever happened to the Tesla solar roofs? Can't get one.

Making a car company profitable enough to justify the insane multiples? NOPE, will never happen. But he's selling Tesla now on the Humanoid Robot "vision".

SpaceX did better on self-landing boosters, but they still have serious issues with scaling it up, and competitors are catching up.

But the physics of orbiting data centers make them not absolutely impossible, but very uneconomical. Every problem supposedly solved in space is easier and orders of magnitude cheaper to solve on the ground.

If you haven't yet noticed the pattern, Elon is always selling the next big hype wave. It is always the NEXT thing that will justify the insane multiples. If you want to buy and hype meme stocks on the next-greater-fool theory, good luck; you will do well for a while as there are many fools around.

Elon hires great engineers. Or at least he did before he blew out his brain with ketamine and went full-on fascist because he had a trans daughter.

He still hasn't built a fully self-driving car. His last electric vehicle (the only one he directly designed) was a massive flop. The successful Tesla vehicles are losing market share because they're old and because of the CEO's odious politics and because he seems to have lost interest in EVs unless they're robotaxis.

Just recently he scammed Wall Street with a horrific overvaluation for a company whose only profits come from Starlink and whose biggest rockets blow up before they reach orbit.

Now he's talking about orbital data centers which make no sense to any engineer who understands thermodynamics (and sadly, many don't) and which are unnecessary because within the next 5 years 90% of inference will be done on local machines in users' homes because the hardware and the algorithms will be good enough to enable it and every Joe and Jane are fed up with surveillance capitalism.