3 ms·
You forgot to consider whether all this is worth $60B.
by cubefox 6mo ago
You forgot to consider whether all this is worth $60B.
- JumpCrisscross 6mo ago> forgot to consider whether all this is worth $60B I see two possibilities: (1) SpaceX is paying with stock; and (2) the $60bn pay-out is (a) conditional or (b) never going to be exercised—it was a stalking horse for negotiating the $10bn terms, which gives SpaceX everything it actually wants.
- 4dsf 6mo agoI think both a) and b) can both be true. We dont know what the contingency is - could be something absurd. Also one would definitely offer to pay in stock if they believe it is massively over-valued lmao.
- goosejuice 6mo ago$1B to $2B ARR in a few months with projection of $6B ARR by years end. If xAi wants to have it's own tools just like OpenAI and Anthropic, then it's not an unusual move.
- necovek 6mo agoExtrapolating from a few months to a full year and calling it Annual Recurring Revenue is one of modern startup valuation gimmicks that I cannot not laugh at. Sometimes it helps to go back to the basics to understand company performance: money in, money out?
- goosejuice 6mo agoSure, but early profit rarely tells the whole story. They already sell to half the fortune 500 and enterprise is sticky. Gains in efficiency, like a discount on data center access, can be remarkable for their profit outlook.
- ej88 6mo agoin these cases arr = annual run rate, commonly used when your revenue is either going vertical (cursor - good) or your revenue is choppy and full of short term projects (mercor - bad)
- nikcub 6mo agoit's not dollars it's X bucks