Jeff Bezos said he doesn’t know if SpaceX is worth $1.75T or $2T but has no doubt space will become a “gigantic industry.”
Entire businesses will be built on top of the backbone SpaceX is creating.
$NVDA Preview Note Abstract
• TP: $308 (from $292)
* FY27/28E EPS $8.8 / $13.2
• F1Q Rev: $80.6B vs Street $80B
• F2Q Guid: $91B vs buy-side $90B
• Potentially new capital return program?
Product Pipeline:
• Reit Rubin MP push out by 1 mo to Sept
* Rubin’s N3 wafer was partly shifted to Vera
* Rubin 2300W unchanged
• Momentum to be fueled by Blackwell, Vera CPU, and rapid LPX ramp.
• Market needs inferencing-optimized GPUs, likely Feynman
#NVDA #AI
This is a catastrophic signal for neoclouds like $CRWV and $NBIS.
These companies exist because compute was scarce. When someone like SpaceX enters the rental market with 220,000 GPUs at once, they become the 800lb gorilla.
SpaceX has the advantage of vertical integration and they can underprice neoclouds into oblivion just to keep their utilization rates at 100%.
Anthropic was a crown jewel customer for specialized clouds. If they are moving their heavy lifting to SpaceX then the moat for neoclouds just evaporated.
Now regarding xAI:
Colossus 2 is supposed to bring them toward 1 million GPUs, but if they can't even utilize the first 200k for a winning internal model, the Gigafab becomes a massive, expensive monument to overcapacity for them.
If xAI had a model capable of leapfrogging GPT-5 or Claude 4, they would be using every single one of those 220,000 H100s/GB200s to train it. You don’t let a direct competitor take over your primary training ground unless:
- xAI’s research might have hit a wall where throwing more compute at Grok isn't yielding proportional returns.
- Maintaining a 300MW facility with 200k+ GPUs costs billions in power and debt service. If they can’t justify the internal training run right now, they have to rent it out to stop the bleeding.
- Musk will clean up the books for a SpaceX IPO. Renting out the hardware makes SpaceX a high-margin infra provider rather than a high-risk research lab.
$TSLA