SpaceX and Google Want to Launch Data Centers Into Space -- 2 Things Investors Should Know
Orbital data centers may prove critical to AI growth.
SpaceX and Google Want to Launch Data Centers Into Space -- 2 Things Investors Should Know
Overview
The historic SpaceX (NASDAQ: SPCX) IPO is now behind us. The company successfully raised $75 billion from outside investors, a sum that could balloon even higher thanks to underwriter allotments and additional share sales. With its market cap soaring, I wouldn't be surprised to see SpaceX sell even more shares at a richer valuation sooner rather than later.
What will the company do with all this new capital? A quick glance at the company's IPO prospectus reveals the answer. Of the company's claimed $28.5 trillion total addressable market, $26.5 trillion of that is dedicated to a single growth opportunity. It's not rockets or Starlink, but artificial intelligence (AI).
Details
Artificial intelligence growth, however, will be greatly limited by data center infrastructure. Without more data centers, SpaceX's AI ambitions will remain capped. Building more data centers as quickly as possible is, therefore, now critical to SpaceX's long-term growth and survival.
Source
Originally published at www.fool.com.
