| ▲ | petilon a day ago |
| SpaceX, despite its name is an AI company, supposedly. Its S-1 states that the company estimates its total addressable market (TAM) at $28.5 trillion, of which $26.5 trillion, or 92.98%, is expected to come from AI. SpaceX is an AI company without a frontier model. Until Jan 2026 SpaceX was an aerospace company. Then xAI was merged into SpaceX on January 30, 2026, so SpaceX became an AI company less than 6 months ago. |
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| ▲ | mullingitover a day ago | parent | next [-] |
| > AI company, supposedly Mainly it’s a REIT that bought a bunch of hardware which is now depreciating like fresh lettuce. They don’t even have a way to use it productively for AI purposes themselves and are instead renting it to competitors, who are using it to lap them. |
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| ▲ | tclancy a day ago | parent [-] | | > now depreciating like fresh lettuce Musk for Prime Minister is what I am hearing here. |
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| ▲ | Octoth0rpe a day ago | parent | prev | next [-] |
| > SpaceX is an AI company without a frontier model. Unless they manage to build such a model, then their plan looks like they intend to be an AI _infrastructure_ company. Which is probably viable and healthy business! One with lots of competition and low margins that is completely misaligned with their current valuation. |
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| ▲ | aoshifo a day ago | parent | next [-] | | It might be a viable business model, but does not warrant anywhere near these valuations. | |
| ▲ | samothrace a day ago | parent | prev | next [-] | | Isn't it a little absurd to be guessing what the business model might be or should be for the company with the largest ever IPO, which got a free pass on (lack of) profitability? It's a little late. | | |
| ▲ | Zigurd a day ago | parent [-] | | Just say it with a South African eurotrash accent and it will all makes sense. |
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| ▲ | indoordin0saur a day ago | parent | prev [-] | | All these bans on building data centers on Earth are starting to make this wild proposition seem a little more rational. | | |
| ▲ | Octoth0rpe a day ago | parent | next [-] | | Only a little, not a lot. It seems like the easy answer is still terrestrial with a heck of a lot more giving back. For example: - offering to pay some nominal subsidy for all households electricity bills in the region. - committing to only closed loop cooling - if the location is amenable, then providing free heating to neighboring buildings. - only building in blighted locations with no current economic value Other random ideas: I wonder if anyone is considering building server racks directly into offshore windfarms. Replacing failed hardware is annoying, but surely more economical than in space where IIUC, there _is_ no plan to ever maintain hardware at all, just deorbit and replace. All the water is right there for cooling (though I'm sure saltwater has its own problems with corrosion). While the current US administration is clearly anti windmill, that might work nicely in Europe. | | |
| ▲ | flatline a day ago | parent | next [-] | | Every time there is an economic boom like this, you get unscrupulous actors coming in and extracting as much value as they can before the regulatory environment catches up. Yes, datacenters should be doing all these things, but that costs money, so they won't until there are local statutes and federal regulations that require them to do so. I expect the current situation to continue at a huge social cost for at least the next 5-10 years unless the bottom falls out of the AI boom before then. | |
| ▲ | Zigurd a day ago | parent | prev [-] | | Microsoft IIRC sank a small server farm into the ocean and found that it worked pretty well. Surely there is fiber alongside the electrical cable from offshore windmills, so that's not a totally crazy idea, but it's never going to happen with SpaceX because Elon still craves Trump's approval, and Trump is anti-windmill. |
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| ▲ | Zigurd a day ago | parent | prev [-] | | Space data centers are so absurd they are the most Elizabeth Holmes Theranos part of SpaceX. IOW this is the part of the story where everyone with a jot of sense can't be fooled, and all your left with are the willingly hornswoggled. |
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| ▲ | tencentshill a day ago | parent | prev [-] |
| The SpaceX subsidiary SpaceXAI (formerly xAI) is X (Formerly Twitter) and xAI. Things move fast in the trillion dollar valuation world. |
