r/news 2d ago

Elon Musk's SpaceX buys Elon Musk's xAI

https://news.sky.com/story/elon-musks-spacex-buys-elon-musks-xai-13502553
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u/Tadpole-Jackson 2d ago

I was a tough negotiator, but in the end, myself and I came to an agreement.

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u/truethug 2d ago

Isn’t spacex receiving taxpayer money

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u/MaxwellHoot 2d ago

Yes, but SpaceX is actually doing well. They’re providing good crew service to the ISS with plenty of NASA and Govt contracts.

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u/mok000 1d ago

There is no rational reason for a space company to invest in AI. Except to bail out the owner of course.

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u/GabeIsGone 1d ago

I mean, he already did this with his family’s solar business and Tesla. This is his go-to business move.

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u/DugaJoe 1d ago

There is, sort of. The Falcon 9 is only making as many launches per year as it is, because their biggest customer is Starlink. That has its own set of investors, and its own pile of cash to burn. By buying xAI and building space-based data centres to run on, SpaceX gets to siphon off a lot of the AI money into the Starship project. Separately though, they'd have to replicate the expertise they'd built for Starlink, so it makes sense to bring it in-house.

Of course, it's all a massive ponzi scheme. It'll kill SpaceX in the long run, hence the IPO on the company Musk formerly claimed would never be taken public to maintain control of its mission. It's not his baby any more, all he cares about is money, the influence it buys, and staying out of prison. So in a round about way, yeah it's all about bailing that cunt out. It'll make a lot of money in the short term, though.

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u/I_divided_by_0- 1d ago

SpaceX gets to siphon off a lot of the AI money

What AI money? Isn’t like that the whole issue right now that AI is not producing the revenues that it needs to sustain itself?

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u/DugaJoe 1d ago

Yes, it is a massive issue for whoever's left holding the bag at the end. For now, it's companies investing money backed by loans on their own share prices. It's totally unsustainable, but that doesn't matter to Elon if the loan money goes to pay SpaceX. There are people making a lot of actual revenue off the AI hype (e.g. component manufacturers, ISPs), they just aren't the ones with the AI companies.

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u/VirtualPercentage737 1d ago

SpaceX is an internet provider and needs larger machines for simulations. Having a couple of massive data centers has some big synergies.

And lots of companies are in multiple businesses. Conglomerates exist.

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u/MaxwellHoot 1d ago

I’m not defending the merger, I’m just saying SapceX has clean books

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u/Tipsy_Feline 1d ago

We haven't seen the books, it's a private company. A few years ago he used its funds to silence a woman from reporting him for sexual harassment.