According to their IPO S-1 draft they are 93% an AI company and 4% a space company. Its the remaining 3% of the company that is profitable, the Starlink stuff.
replyAs I recall isn't Starlink revenue at least 3x Space revenue, so not sure how they are characterizing that 3:1 ratio as 3% vs 4% !
replyThe "93% AI company" is also a huge mischaracterization since this isn't AI business - it's datacenter/GPU leasing business which their 2 customers can pull the plug on with 90 days notice.
given that SpaceX is choosing what price they're charging starlink, there's a reasonable argument that starlink isn't profitable either
replyDoes Starlink pay SpaceX for launches?
replyYeah, Starlink is about 3.5x the space launch revenue but still only about 0.5x in terms of profit. Falcon 9 is as optimized as a rocket could be, and absolutely owns the market. Starlink is a mostly rural service with global consumer pricing where average monthly rates in poorer countries drag the average down. Starlink government and commercial business, however, is growing quickly and I expect that soon Starlink will be ahead of launch, in terms of income, probably by the end of this year.
replyGiven the amount of compute rented I doubt there’s anything meaningful left for the people there to do any AI.
replyMaybe they'll become an AI company again after they've abused their privileged access as hardware providers to reverse-engineer Google and Anthropic's weights and operations.
replyThe profit center, to the extent any division makes money, is Starlink, yes, but what we have always known as SpaceX is just a tiny side project in the combined company.
replyI’m pretty sure he’s just trying to become the world’s first trillionaire at this point, these deals are obviously gimmicks to boost the SpaceX share price and his less-than-critical-thinking fanbase will happily oblige.
replyYeah, then next move may be to have SpaceX buy Tesla with it's inflated stock, before it collapses.
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