Bloomberg is reporting that the deal is official and with both companies being private I am not sure how much Regulators are going to be able to mess with this combination.
One thing that does stick out to me though is the wording I keep seeing.... SpaceX is to merge with xAI and not the other way around. When I had read about this last week it was xAI going into SpaceX but now the opposite seems to be the case.
This is rapidly shaping up to be a monster IPO if both companies are combined and thus go public together. With SpaceX's eval alone almost $1 trillion xAI doesn't have to have to big of one (it was a couple hundred billion last time I checked) to get the combined company over a trillion. There is reason for this with the whole space data center idea but that is a huge if on the possibility. Ton of technological challenges remain granted SpaceX launch and reuse does help address a multitude of them.
archived link
Thanks!
No thx owed, it's my primary contribution to SN lol
I always am forgetting what the website is lol!
Thanks for posting this! I’m bullish on space x
They have a hell of a case in their favor. I mean profitable and expanding. Plus you throw in the AI stuff now and its well one of one!
Does USA have the electricity generation capacity to develop AI in the race with China?
You understand that China has a population much much higher so they have to produce more electricity right? When you have 4 times the population plus you manufacture crap for the world you have to produce stupid amounts of power.
The US doesnt have to produce near as much because of that.
You should look at something that would actually represent something. Per capita generation. These are terrible charts that serve no purpose besides propaganda and shock and awe. The US is deploying energy assets at incredible levels now and are no longer retiring all the only stuff just because.
Chinese have grown their electricity generation capacity at an exponential rate.
USA has not and cannot.
China have since the early 2000s adopted a massive and hugely successful strategy of energy efficiency which means they build the LEDs in the lighting in your office space.
They lead the world in nuclear power generation by a huge margin.
USA is the most inefficient wasteful user of energy on the planet...squandering resources and wrecking the climate in the process.
USA has failed to move its energy policy into the 20th century and remains hugely reliant upon out dated and dirty fossil fuels.
China are building a new hydro power plant that is three times bigger than the three gorges.
USA is forced to keep running old outdated and dangerous plants because its industrial capacity to build new electricity generation at competitive rates is so terribly degraded by decades of decadent neoliberal selling out of its industrial base.
Chinas rapid electricity power generation development and capacity highlights the advantages of the Chinese state capitalism model- a model that identifies and develops strategic capacity in areas where there is significant potential for economic growth.
Capital and resources are directed into these areas resulting significant results.
These 'terrible' charts show how far behind the US military industrial complex is in terms of major and significant factors such as the ability to generate electricity which is the fuel of the post industrial economy.
Chinese consumers and businesses pay less than half for electricity giving Chinese manufacturers a huge strategic advantage in global trade.
These terrible facts conflict with your faith in the merits of the USA and its military industrial based global hegemony. Tough. Time to face reality Uncle Sam.
Trump acknowledges Chinas success by himself increasingly adopting state capitalism.
The US has some of the most stringent environmental policies out there. China is rapidly poisoning their population with the growing number of cancer cities with heavy metal levels that the US can’t even touch. Our plants are not dangerous what are you even talking about? That’s some of the most absurd stuff you have said.
You know why China builds those dams? Because of failed environmental policy that ends up biting them in the end. It’s not even certain that that dam will be able to work like they think. Remember when China was blowing up dams because 3 gorges almost was toppled? You never see that in the US.
The chart is something no one would ever use 😂 why not throw up one that shows France leading the world in nuclear power generation because I mean they do their power mix is heavily heavily nuclear but that doesn’t mean they are good at building it or that it solves their energy needs.
You understand with the exception of Intel the companies the US took stakes in are companies where China has shown time and time again they don’t want free trade. Thus the US keeps the companies upright during their ramp ups.
Agree that the safety standards in China are not as stringent as in the USA.
This is a war for dominance and survival of two conflicting cultures and sacrifices will quite logically be made to win it.
Have you heard of 'eating bitter'?
Do you know what it means?
Or like many Americans-Westerners today, are you over weight if not obese on the rich diet and lifestyle enabled by global resource hegemony?
It is an existential conflict and contest between two conflicting cultures and belief systems.
China is racing to build its strength to avoid being subjugated by the USA.
The Chinese have not forgotten the lessons of The Opium Wars!
The USA farmed out a lot of the heavy industry that causes pollution and China took on most of that capacity that was outsourced by USA.
What USA did not factor was that China would not be content to be a US vassal like Japan, S.Korea, Canada, UK, EU or Australasia.
Chinas long heritage of being the dominant regional power continues today- their belief is that they deserve and must preserve their right to preeminence over other nations.
The USA holds a very similar self belief.
Since The Opium Wars that deep Chinese cultural self belief in being the naturally dominant culture was severely challenged, but today with their state capitalist model of mercantile power they are advancing it with convincing vigour and fundamental to achieving it will be winning freedom from US imperialist hegemony.
Ladies and gentlemen please place your bets...
Correction xAI is merging into SpaceX..... That makes a ton more sense
Either way they may lack the rare earths supply and electricity generation capacity to be competitive with China.
China won the trade war and controls the supply chains and generates a shit ton of electricity with future surpluses projected while USA stumbles along on fossil fuel dependence and stagnant production of electricity.
It costs 6X as much to build new nuclear generation in USA as it does in China.
Having plenty of low cost electricity is key to Chinas competitive advantage in manufacturing and the post industrial economy.
God you don’t pay any attention to states and it’s honestly annoying because you wouldn’t say stupid shit like the US has stagnated in production of electricity. That’s such a terrible take because it’s just not true. We are producing more electricity it might be straining the grid but we are turning on power demand as needed. Otherwise Texas and the PJM wouldn’t be setting new demand records year over year.
Maybe read and google before you type. The US still has some of the cheapest power in the world and yes it’s gone up and people are pissed but that’s what happens when your electricity goes from dirt cheap to cheap.
#1425079
Also -
https://www.wsj.com/tech/china-ai-electricity-data-centers-d2a86935
https://archive.ph/OrJVm
'ULANQAB, China—The U.S. invented the most powerful artificial-intelligence models and controls access to the most advanced computer chips, but China has an ace to play in the global AI contest.
China now has the biggest power grid the world has ever seen. Between 2010 and 2024, its power production increased by more than the rest of the world combined. Last year, China generated more than twice as much electricity as the U.S. Some Chinese data centers are now paying less than half what American ones pay for electricity.
“In China, electricity is our competitive advantage,” Liu Liehong, head of China’s National Data Administration, said in March.
The push for power supremacy is transforming remote expanses of Inner Mongolia, a Texas-like landscape of wide-open spaces now dotted with thousands of wind turbines and crisscrossed by transmission lines. They provide electricity for what officials describe as a new “cloud valley of the grasslands,” with more than 100 data centers in operation or on the way.
That is just the beginning. Morgan Stanley forecasts that China will spend some $560 billion on grid projects in the five years through 2030, up 45% from the previous five years. Goldman Sachs predicts that by 2030, China will have about 400 gigawatts of spare capacity, about three times the world’s expected data-center power demand at that time.'
WSJ
The stats say otherwise.
China is producing a huge surplus of electricity and its delivered at less than half the cost to manufacturers and consumers.
Less than half what US consumers and producers pay.
This is a significant economic advantage to the Chinese economy.
It may well come at an environmental cost, but wars do that.
USA should know that with the costs it has imposed on multiple nations it is imposed its will on...or do you forget the inconvenient trappings of power when you are winning?
Power generation has been fundamental plan in their mercantile state capitalist model of development and continues to be with projected power surpluses well into the future.
Lack of supply of rare earths could be a problem for both and for the US military industrial complex in general.
Having lost its supply of rare earths the US military industrial complex is in defensive mode.
USA cannot fight a war of any scale or duration, for the next decade at least, since China has halted supply of the rare earths essential to so many components in the US military industrial complex.