4 ms·
What exactly is SpaceX's core business?
by cj 4mo ago
What exactly is SpaceX's core business?
- cryo32 4mo agoSmoking crack and investment fraud. With a light sprinkling of space.
- deleted 4mo ago[deleted]
- diordiderot 4mo ago[flagged]
- hirako2000 4mo agoIts main business is connectivity. Starlink generated over 10B last year. Becoming a broader infrastructure company with xAI.
- ninkendo 4mo ago> Starlink generated over 10B last year An entire one-hundredth of their proposed valuation!
- diordiderot 4mo agoYeah, crazy for a company with nothing but the largest civilian satellite network and what amounts to a monopoly on space flight.
- ninkendo 4mo agoProfitability of space flight has a hard maximum. It’s not anywhere close to what their valuation would suggest. There’s a reason Elon keeps trying to get investors to believe his “data centers in space” lunacy, because you need that sort of magic pixie dust to justify why any of this valuation makes sense, let alone have anywhere to go but down.
- sublimefire 4mo agoStarlink terminals are popular, they put them on drones to avoid jamming (Starling jamming exists but not that easy for now). It might be their sales are inflated due to its use at war.
- raphaelj 4mo agoThat's only about 35% more than the main telecom operator here in Belgium (Proximus: $7.2B revenue in 2025, $2.5B market cap, positive earnings for 15+ years). Obviously Starlink can and will growth. I'm just pointing out how insane the market cap is, when compared to similar scale "connectivity" businesses.
- hirako2000 4mo agoI'm with you the 5B loss for 18B overall revenue shouldn't grant a valuation anywhere near 1.7 trillion. was just answering the question.
- jeltz 4mo agoTheir 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.
- sidcool 4mo agoI can understand this being a move to increase valuation, but I can't connect with the stupidity and scamming investors argument.
- jeltz 4mo agoSorry, I was unclear. With that I did not talk about this particular deal. This particular deal seems sane. XAI built more compute that they can use themselves since Grok is not very successful so to not just have the hardware standing there they rent it out to competitors. Makes total sense. It is other things Musk has gone with Twitter and SpaceX which are shady.
- Laurel1234 4mo agoI'm pretty sure xAI is just Musk throwing a tantrum after being played for a fool by Lying Sam.
- ACCount37 4mo agoLaunch 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.
- jordanb 4mo ago
- sourcecodeplz 4mo agoA datacenter that also provides connectivity/Internet
- dgellow 4mo agoGovernment contracts. Dumping its shares on retail investors. Selling compute to AI vendors
- dehrmann 4mo agoElon Musk.