Chapter 1: What is the main topic discussed in this episode?
Welcome to the podcast. I'm your host, Jaden Schaefer.
Chapter 2: What is SpaceX's plan for a million AI data center satellites?
Today on the show, I wanna talk about the latest news from SpaceX filing some paperwork with the Federal Communications Commission last Friday in what looks like a million satellite data center network, right? So they have filed paperwork to request to be able to shoot a million data center satellites up orbiting the Earth.
And at first, I think a lot of people said this is like, oh, you know, this is kind of just Elon. This is like a theatrical idea that is just kind of floating out there because, you know, it makes it sound good to merge SpaceX and XAI and make this $1.25 trillion company before an IPO.
I think if you look at what's happening, especially as of today, this is like a week later, I think it is pretty clear that that he actually means it. So today on the show, I wanna break down what this would look like, what a AI data center cluster floating around the earth of a million satellites would look like, why they would do it, logistically how this would work.
There is a lot to unpack here. including some really interesting quotes from Elon Musk on a recent podcast about using solar panels and how much more efficient they are in space, all these different crazy things. So we're going to dive into all of that. Before we do, I wanted to share some really exciting news about my startup, AIbox.ai. We've recently launched some new subscription tiers
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All sorts of things people are using it for, creating logos and anything you'd use AI for, but you could link multiple AI models together. We've just launched a brand new $9 a month tier that gives you access to over 40 of the top AI models in one place.
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Chapter 3: How does AIbox improve access to AI tools?
They make money by launching things into space. And so now if they own an AI company, that needs massive amounts of compute power. Launching things into space is kind of the best way for them to go about doing that. But according to Bloomberg, this whole SpaceX-XAI merger values them at about $1.25 trillion, and it makes it the most valuable private company in the world.
SpaceX has reportedly been preparing for an IPO, which might happen in June, but Elon Musk didn't say whether the merger is going to change those plans in any way.
I think it is interesting that on this podcast recently when he was talking about all this, he was there with the co-founder of Stripe, which is one of the other biggest privately held companies, which a lot of rumors about when they might IPO are circulating out there. Something that's really interesting is there was a memo that was kind of announcing this deal.
And Elon Musk basically framed the merger almost entirely around this kind of space-based data center. And that's basically why he said they needed to merge. And this is a quote from that memo. He said, Global electricity demand for AI cannot be met on Earth alone without putting pressure on communities and the environment.
And that's basically his argument, which of course is a little bit complicated. Right now, we know that XAI has been accused of straining local infrastructure at their data center in Memphis, Tennessee. I mean, this is probably where he's getting a lot of this from. I think he's gotten a lot of flack for that.
And so I think he's like, look, if we're going to scale this up, how do we get it so it's not directly impacting communities? But this is, you know, absolutely massive merger bringing some really huge companies together. XAI right now is burning about a billion dollars a month, according to Bloomberg, so 12 billion a year.
SpaceX, on the other hand, earns about 80% of their revenue from launching their own starlight satellite. So it's not just SpaceX. I think a lot of people think like, you know, SpaceX is making their money from just government contracts or putting satellites up for other companies. 80% of the revenue is just from their own product, which is Starlink and, you know, basically global internet.
And if you look at a report from routers that came out last year, XAI, when they acquired X, apparently in that deal, Musk said that the combined value was about $113 billion. And since then, with this merger, they valued XAI at about $250 billion. So since that merger, the company has, you know, gone up over a hundred billion dollars.
Elon said that this kind of space-based data centers are going to have, you know, they're going to need a lot of satellites. It's basically getting into like a steady flow of satellites. He didn't say how many. I think basically the requirement is going to guarantee though, that there's this ongoing launch demand for SpaceX. So this is, you know, SpaceX is never going to
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