00:00spacex's shares are down in late trade despite the revenue exceeding estimates in the company's
00:04first earnings report after its mega ipo in june that came in at 7.8 billion dollars for the last
00:09quarter capex jumped to about 18.4 billion boomberg's danny lee joins us now for uh more and
00:15danny really this was really due to investor alarm over how much spending is going into the ai side
00:21of the business unsurprising though given how elon musk's been viewing this company
00:29yeah well spacex has always positioned itself before the ipo and now uh continually as an ai
00:35company and so there's this very heavy levels of spending that uh the company is having to push
00:41through uh just to fulfill its uh ambitions and also uh some of the uh the the kind of clients
00:48it
00:48has as well so yeah for investors that puts the shares under more selling pressure after having
00:54fallen like over 50 percent at least from its uh peak uh only a couple of months ago so yeah
01:00again more pressure but when you do as you said look at the earnings now it did much better uh
01:05than
01:05expected on the revenue and themselves and just uh ultimately the business units are all performing
01:10better we still only have uh the uh the starlink business uh the connectivity side which is the cash
01:16account and profitable making money uh but interestingly even on that kind of business
01:21subscribers fell light but there's just that focus on the capex number of 18 4 billion 18.4 billion
01:28that really is just ways on the company and that focus is likely to continue right that scrutiny
01:35because so much of these ambitions of data centers in space are largely unproven
01:43uh yeah i mean spacex does have a lot of ambitions for example putting uh data centers in space uh
01:49but
01:50yeah even when you come to the likes of of capex the fact that that level of spending is going
01:54to
01:55continue for another couple of quarters but still as they look to improve other sides of the business
02:00even for for starlink they're looking at ground-based infrastructure to complement satellite businesses
02:05and even then the fact that it is selling compute capacity to other major tech players that is providing
02:10genuinely good revenue
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