alt Hacker NewsTheir satellite internet business is the only thing which makes them money, which is enabled by their orbital launch business which is as of right now not profitable and I have no idea of if it ever will be but without it they would not be able to launch enough satellites.
Their stupidity with AI and buying X mostly seems to be about scamming investors to make Musk even richer. Like this particular deal is just them doing what CoreWeave does at a SpaceX valuation.
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sidcool • today at 12:47 PM
I can understand this being a move to increase valuation, but I can't connect with the stupidity and scamming investors argument.
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Laurel1234 • today at 1:04 PM
I'm pretty sure xAI is just Musk throwing a tantrum after being played for a fool by Lying Sam.
Launch isn't profitable simply because ongoing Starship R&D is eating into it. A lot of opex, capex, and pre-revenue.
If 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.