SpaceX Is Quietly Becoming One of the Most Important Data Center Companies in AI. Here's What That Means for Investors
SpaceX's business now goes beyond rocket launches and internet service.
SpaceX Is Quietly Becoming One of the Most Important Data Center Companies in AI. Here's What That Means for Investors
Overview
Space Exploration Technologies Corp. (NASDAQ: SPCX), better known as SpaceX, is a more complex business than many people believed prior to its recent IPO. In addition to its industry-leading rocket launch business, the company has the highly profitable Starlink satellite internet service and the AI-focused xAI platform.
When it comes to the xAI business, much of the investment thesis has centered around the Grok AI model and long-term aspirational projects like putting data centers into orbit. But with three major deal announcements in recent months, investors are starting to see that there is more to SpaceX's AI business than many had thought. They're also seeing that it could become the company's primary revenue driver as soon as next year.
Details
It was a big surprise for many investors when SpaceX announced a deal with Anthropic shortly before its IPO. The AI company behind the popular Claude platforms agreed to lease about 300 megawatts of AI compute from xAI, the entire capacity of the Colossus 1 data center.
Source
Originally published at www.fool.com.
