Jared Vennett (narration): "In the years that followed, hundreds of bankers and rating agency's executives went to jail. The SEC was completely overhauled, and Congress had no choice but to break up the big banks and regulate the mortgage and derivatives industries."
"Just kidding. Banks took the money the American people gave them, and they used it to pay themselves huge bonuses, and lobby the Congress to kill big reform. And then they blamed immigrants and poor people, and this time even teachers."
None of this has anything to do with business or innovation. Do you not immediately see that? Most of my friends reaction to this news was that this is so obvious it's almost funny (or actually it is funny, since most were laughing as they read the headline).
I'm curious how you could not understand the relevance of the quote unless you were aggressively trying to not understanding it.
But regardless, I think quotes like these should have some commentary around them as it helps create a discussion around whatever point they might be trying to make rather than having to make assumptions.
Datacenters in space, on the other hand, are a terrible idea because of the laws of physics, which will not get "solved" anytime soon. But don't take it from me, listen to this guy with a PhD in space electronics who worked at NASA and Google:
https://taranis.ie/datacenters-in-space-are-a-terrible-horri...
You're also passing these judgements without knowing their full plan. Maybe we only know one part of the plan and maybe other details have not been announced. They may have a much bigger plan for this than just the specific information we have.
What I am saying is that clearly SpaceX/xAI feel that this is a viable option based on many experts research/facts that are more knowledgeable than a single bloggers opinion. If I am thinking rationally why would I choose to believe a single random person over a group of experts banking A LOT of money that they have a solution that works?
As for dismissing the article: the author has a PhD in space electronics, worked at NASA, and spent a decade at Google including on AI capacity deployment. He walks through power, thermal, radiation, and communications constraints with actual numbers. You do not get to hand-wave that away with "he is anti-Elon" and then defer to "the team spending the most money." That is not rational analysis, that is fandom.
And the idea that SpaceX's experts looked at this and concluded the combination makes strategic sense - seriously? This is the same playbook Musk has run repeatedly: SolarCity into Tesla, X into xAI, now xAI into SpaceX. Every time there is a struggling asset that needs a lifeline, it gets folded into a healthier entity with Musk negotiating on both sides. xAI is burning $1B/month. There is already a fiduciary duty lawsuit over Tesla's $2B investment in xAI. The "space data centers" rationale is a pretext for giving xAI investors an exit through SpaceX's upcoming IPO. This is not a strategic vision, it is financial engineering solving an obvious problem for Elon.
Meanwhile, Grok has been generating sexualized images of children, the California AG has opened a formal investigation, the UK Internet Watch Foundation found CSAM attributed to Grok on the dark web, Musk personally pushed to loosen Grok's safety restrictions after which three safety team members quit, and xAI's response to press inquiries was the auto-reply "Legacy Media Lies." This is the company whose judgment you are trusting over a domain expert's detailed technical analysis.