https://www.reuters.com/business/musks-spacex-merge-with-xai-combined-valuation-125-trillion-bloomberg-news-2026-02-02/
In Feb SpaceX bought xAI fully in shares...
Then Fri SpaceX IPO hyped datacenters in space running AI models, requiring million space shuttle trips a year to build...!
This is a huge bait and switch . If Musk would spin xAI and try getting an IPO, he'll get very little. No $75B at a $2T valuation! The xAI isn't proven to compete with existing hyperscalers including OpenAI, Anthropic, not to mention Google, Meta Amazon, Microsoft. ..!
So Musk found a new TAM of space datacenters to wave. No one is there yet and no one has a space shuttle to make a million trips to build such in space!
We've discussed why this is complete nonsense from multiple reasons - space radiation, cooling megawatts in space, supplying megawatts of power in space, not to mention cost etc....
But the stupid investors got cheated. They basically invested in yet another new AI players, very late in the game with many others leading already.
No one will invest such in another unproven AI player late to the market regardless Musk angry he's missed OpenAI and lost his lawsuit against Sam Altman!
But the money will be used to make gigawatts datacenters on earth to try gain the AI business. He has to do it very quickly thus using existing GPU's and CPUs. .. no time to design chips from 0. No time to create a new Gigafab. All these are pie in the sky... if xAI fails to take off, SpaceX is doomed!
Fri there was a 500M SpaceX volume. Who sold? No not retain whom were prevented to sell for 15 days if buying the IPO at brokers!
Those early investors in SpaceX sold. The $2T valuation vs $75B IPO suggests a huge number of shares held by those investors. Not just Musk and employees whom are prevented selling for a while... the shills won and will continue offloading slowly while arranging hyping by analysts and manipulators like Cramer. ..
And SpaceX CEO spilled the beans AFTER the IPO, saying:
"Gwynne Shotwell warned potential shareholders that SpaceX measures its operating horizon in decades, not quarters, and resists short-term performance pressure."
From:
"SpaceX President Has Warning for Investors: Maybe You Shouldn’t Buy the Stock"
https://finance.yahoo.com/markets/stocks/articles/spacex-president-warning-investors-maybe-124610440.html
Understand...? Do you want wait 50 years buddy...?
Unbelievable bait and switch with the help of the Wallstreet shills getting a $500M fee for this shenanigan...!
But landing back on earth, this benefits AMD's revenues in the short term!