xAI is looking more like a datacentre REIT than a frontier lab 1 month ago
The math currently works given a lot of rosy assumptions about xAI's ability to develop Starship + orbital cooling but no way it works in 5 years.
There's a huge GPU shortage right now, so prices are inflated. In the long term what matters is that
cost of launch + space hardware < cost of electricity
Electricity is only about 10-15% of the cost of running a terrestrial AI datacenter, so that doesn't give them a lot of room to undercut their terrestrial competitors