00:00The story around SpaceX has changed now, you know, pre-IPO it was about space, it was about Starlink, Satellite,
00:07Starship, the next generation, a rocket which are all very critical to its ambitions around space, around data centers in
00:13space, but now we're almost seeing the emergence of a cloud business here for SpaceX as it looks to get
00:20NVIDIA chips and it has a very good relationship with NVIDIA.
00:22We heard Elon Musk talk a lot about Jensen Huang, a lot about NVIDIA and access to compute right now
00:27in a market which is compute scarce is a very competitive advantage which Elon Musk has been very bullish on
00:35as well and that's where he's trying to position SpaceX at this point as a cloud player, offering some of
00:41this compute, renting out capacity.
00:42And the key here is, is this a long-term strategy or is this just SpaceX now in a market,
00:47as I mentioned, which is compute scarce trying to take advantage of companies that need access to this power as
00:54well?
00:54So that's a big question.
00:55I mean right now, more than I think anyone expected, they are taking advantage of a huge supply demand imbalance
01:03in compute. They are spending more money, you raise the question about capex concerns, I think that's fair, but what
01:10their payback looks like is much higher than we're seeing elsewhere, maybe coming on at 80% gross margins.
01:17You know, I mean they've just talked, you heard Elon's comments there, $100 billion revenue run rate by the end
01:24of this year, that is way above where anyone on the street was expecting.
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