00:00SpaceX just bought XAI. All stock transaction. The SpaceX bit valued at $1 trillion, the XAI bit
00:07$250 billion, the combined entity $1.25 trillion. XAI becomes a subsidiary of SpaceX, which is
00:16subject to rules around the use of technology in defense applications. Thus, XAI will basically
00:22run as a separate company. There are concerns about XAI's debt pile and some of the financing
00:27behind this. The question is why? Elon Musk's argument is quite simple. AI is running out
00:32of power here on Earth. It's putting a burden on the grid. It's impacting communities, using up water,
00:37and there isn't enough space to build data centers. So Elon Musk's solution, put the data centers in
00:42space, near constant solar power, instant cooling, no space constraints. Pardon the pun. By merging XAI
00:49with SpaceX, Elon Musk has the talent, the rockets, the satellites, the communications network,
00:55network, and an orbital-based space data center footprint. And an AI stack is one integrated
01:02system. Starship becomes the enabler, launching massive AI compute systems that rely on solar
01:08to power them. Sure, there's a bigger picture longer term. Get to Mars, moon bases, space-based
01:14economy. We still think the SpaceX IPO is coming in 2026, because even if these data centers go
01:20into space, somebody's got to pay for the GPUs.
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