“.. So now Google and Anthropic pay rent on the hardware Grok couldn't use, and that rent is the AI revenue story SpaceX takes public on Thursday.”

@Yuchenj_UW They are sure in comfortable position but im sure Elon would rather have his own AI running on this hardware. And looking at progress with grok build and their own models, we might see that shift by end of this year.

@BlissyOnX Elon be like:

@PawelJLisowski Sure, I hope xAI catch up.

@Yuchenj_UW spacex being a bigger cloud provider than actual cloud providers is wild

elon really just backed into this by accident lol

**Neo** = **new**.

"Neocloud" refers to the new wave of specialized GPU cloud providers built for AI workloads (CoreWeave, Crusoe, Lambda, etc.), as opposed to traditional hyperscalers like AWS, Azure, or Google Cloud.

SpaceX is jokingly called the largest one here because it's renting massive GPU capacity to AI companies.

@Yuchenj_UW

@Yuchenj_UW Are paying is wrong, as of today there is no single GPU up there.

They will pay , it will take a huge amount of time and effort to build a million GPU data centre in space.

@Yuchenj_UW @BlissyOnX And...

@FuckElon54528 @Yuchenj_UW Not at all, their deal with cursor and grok build release show he simply changed approach but far from giving up. Can’t say same about meta or msft tbh

The part nobody’s highlighting: both the Google and Anthropic deals include 90-day termination clauses after December 31.

SpaceX gets to count $2.1B/month in recurring revenue for the IPO roadshow but neither contract is locked in past year-end. The investors pricing this at $1.75T should know that.

@Yuchenj_UW Buying then renting out GPUs is a shitty business. It’s the option to turns those GPUs into training and inference for Grok that’s super valuable.

That’s why all these cloud deals have options to cancel with 90 days notice.

If it were a great business Microsoft would moon

@Yuchenj_UW and no bottlenecks, pure margin capture

@carlquintanilla I said this a year ago, and I’ll say it again: @HowardSchilit it’s time for the 5th edition of Financial Shenanigans.

@Yuchenj_UW @PawelJLisowski he basically gave up, while Meta and MSFT are still trying

@Yuchenj_UW Is this like a bot thing, why am I seeing multiple tweets saying Elon accidentally built a bunch of data centers?

@Yuchenj_UW @grok what does the « neo » prefix mean in this context?

@Yuchenj_UW GPU rental has become the larger portion of SpaceX, maybe they can call themselves Data centerX too

@Yuchenj_UW @grok which of my earlier post already mentioned this?

@carlquintanilla How dare SpaceX make revenue on their compute resources! We were told those resources were built *checks notes* to make revenue on compute!