"Wednesday's announcement-paired with Musk's dissolution of his AI company xAI into SpaceX (to make SpaceXAi)-gives the IPO something it didn't have a week ago: a marquee AI customer for a credible cloud-infrastructure business."
"According to estimates from Antoine Chkaiban, an analyst at New Street Research, the Anthropic deal will generate $3 billion to $4 billion in annual revenue for SpaceX, with more than $2.5 billion in cash profit. The margins seem extreme, but that's because the data center is already built: the fixed capital expense is sunk, and the only meaningful operating cost is electricity plus the relatively minimal costs of staffing the place."
""He's not going to want multiple billions of dollars of GPUs sitting idle," Chkaiban told Fortune. "It's a very good business decision."And, it seems, the start of Elon Musk's transition from seeking to be a frontrunner in the model race, to being the landlord of AI."
""He who controls the data center, really does control the application of artificial intelligence right now," Andrew Moore, the former head of Google Cloud AI and now CEO of defense AI startup Lovelace AI, told Fortune. "So, yeah, I think both sides of this wedding of convenience will be a little stressed out by it.""
Elon Musk previously criticized Anthropic on X, but later leased the world’s biggest supercomputer to Anthropic. The arrangement is viewed as less about Anthropic’s business and more about supporting an upcoming SpaceX public offering. SpaceX is expected to start a public roadshow next month, with a confidential S-1 filed April 1 targeting a valuation between $1.75 trillion and $2 trillion. Musk’s move to dissolve xAI into SpaceX to form SpaceXAi adds a credible AI customer base for cloud infrastructure. Analysts estimate the Anthropic deal could generate $3 billion to $4 billion in annual revenue and over $2.5 billion in cash profit, with high margins because the data center is already built and operating costs are mainly electricity and staffing. The deal strengthens SpaceX’s position in AI infrastructure control.
Read at Fortune
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