00:00I know there had been some questions as to whether SpaceX combines with Tesla or what XAI going with
00:05Tesla. Why this deal in this form? Why is this what Elon Musk is eyeing? So it seems like this
00:09is what's been gaining traction over the weekend and late last week, that it's going to be XAI and
00:13SpaceX, the two private companies, or well, there's more private companies in Musk's portfolio,
00:17but the two biggest private companies would merge. It's going to be some more financial
00:22engineering. You might remember last year, X and XAI came under one umbrella. So this just,
00:27you know, furthers that consolidation among these private companies in his wheelhouse.
00:32I want to bring back Mandeep Singh from Bloomberg Intelligence, because I have
00:36long heard from market participants that they expect all these companies to combine in order
00:42to drive Tesla's market cap up to eight and a half trillion. That way Musk can get his trillion
00:47dollar pay package. Is this just a test run? Does Musk put these two companies together before he
00:53combines them eventually all with Tesla? I mean, right now, I think XAI needs a lot of money when
00:59you compare them to the other foundational model players. They are investing heavily up front to,
01:05you know, develop the model for inferencing as well, serving the model traffic. XAI has to raise more
01:13money. And so from that perspective, they already lost $11 billion. That was their cash burn for 2025.
01:19How do you convince investors to invest in XAI ahead of OpenAI or Gemini or, you know,
01:26Anthropic? And so from that perspective, combining, you know, SpaceX and XAI makes more sense because
01:33that makes it more palatable as an entity to invest in. And so that for me is the rationale
01:38because there's no doubt that XAI needs more money. Otherwise they would trail, you know,
01:44behind these three frontier models.
01:45Well, just on that point, Liana, I know you wrote in your story too, that part of the impetus of this
01:49is putting data centers in space. And I have to say, we had a space executive on who was like,
01:54we're going to put data centers on the moon. And I thought it was the most insane thing I'd ever
01:58heard. I mean, does this get it closer to reality? Does this help in some nature?
02:02I've been more focused on the SpaceX IPO. That's a little more realistic, but I think some filings came
02:08out where, you know, Musk is laying the groundwork for potentially these data centers in space.
02:14Maybe Mandeep would know more about the Grok chips and how that would work,
02:18but definitely there's so much demand for power generation that'll be needed here on earth and in
02:22space. How does it change the IPO then if these two combine? I'd say I mentioned before, there's
02:27some financial engineering here. It's just a cleaner if this is one company. It would definitely make for
02:32a longer IPO prospectus, but we'll see if this goes out this year, it'll be one of the most high profile
02:39and biggest IPOs we've seen.
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