Launch isn't profitable simply because ongoing Starship R&D is eating into it. A lot of opex, capex, and pre-revenue.
replyIf they start running Starship anywhere near the way they do Falcon 9, it'll flip into profits. A lot of big bets SpaceX made ride on Starship coming online. I'm honestly surprised Starlink is already so profitable without it.
One of their big named bets includes: orbital datacenters. Which puts this specific deal into perspective.
80% of the space launch business is putting starlink satellites into orbit, so it's all internal funny money. They could very well be letting the space launch business take losses to make the satellite internet business look better (only profitable part of the whole thing).
replyWasn't starship supposed to be funded by the NASA contract?
Orbital datacenters sound like a dangerous bet. I couldn't think of a worse place for a lot of delecate electronics.
replyHave you considered Magma Chamber datacenters?
replyBoomers and luddites won't let them be built on earth so no other option really
replyIt's more unpopular than that. Not surprising since they're competing underhandedly for electricity generation with everyone else.
replyI can understand this being a move to increase valuation, but I can't connect with the stupidity and scamming investors argument.
replySorry, I was unclear. With that I did not talk about this particular deal. This particular deal seems sane. XAI built more compute that they can use themselves since Grok is not very successful so to not just have the hardware standing there they rent it out to competitors. Makes total sense.
replyIt is other things Musk has gone with Twitter and SpaceX which are shady.
I'm pretty sure xAI is just Musk throwing a tantrum after being played for a fool by Lying Sam.
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