Berber Jin

And I think the IPO will really be an interesting moment in time where we'll see whether he gets rewarded or punished for this acquisition.

And we'll potentially even be able to get a look under the hood of just how much it costs to train AI models.

It'll depend on how they break it down, the financials.

But I mean, we could learn a lot.

I think we will learn a lot from that process.

We've reported that SpaceX is looking to go public as soon as the middle of this year, and this merger definitely throws a little bit of a curveball in those ambitions because SpaceX on its own is a profitable business, and XAI on the other hand doesn't generate a lot of revenue, but it burns through billions of dollars every year on computing costs.

So by merging the two companies together, he's essentially taking a very money-losing, cash-intensive business and

pairing it with SpaceX.

In a blog post, Elon essentially said that the merger is in service of this kind of almost sci-fi-esque vision of building AI data centers in space.

So Elon talked about having SpaceX building a constellation of data centers in space that can power AI training in the future.

And a lot of tech CEOs, including Google's Sundar Pichai and Sam Altman at OpenAI, have talked about space as a new frontier and be able to harness the power of the sun and have more leeway to build data centers in places where there are fewer regulations.

OpenAI's calculus is that whoever goes out first will definitely benefit from a lot of the attention that will come from being the first generative AI company to be a public company, and will be able to access a lot of the public money that is basically just waiting to be put into this new wave of GenAI companies.

You have to remember that these businesses lose a lot of money.

It costs a lot to build next generation models and to also power chatbots like ChatGPT and Claude.

And there's going to be a limit to how much these companies can keep raising in the private market.

It's a typical Monday at OpenAI, and the company's employees get hit with this Slack message from Sam Altman, the CEO, where he declares a code red.

Kind of like a company-wide emergency, telling employees that they had been seeing this big problem kind of creep up and then kind of explode in recent weeks.

In many senses, it was a memo that you wouldn't expect from Sam Altman because Sam Altman, his leadership style is to dream big and to spin up products at a really rapid pace and ship them really fast and kind of look to the stars.

And this memo was the opposite.

It was like, we need to become more disciplined and we need to focus on making the basic features of ChatGPT better for users.