Buy Crypto
Pay with
USD
USD
Buy & Sell
Hot
Supports Visa, Mastercard, SEPA & more
P2P
0 Fees
Flexible trading, zero fees
Gate Card
Use your crypto for payments worldwide
Markets
Trade
Basic
Advanced
Futures
Futures
Access hundreds of perpetual contracts
CFD
Gold
One platform for global traditional assets
Options
Hot
Trade European-style vanilla options
Unified Account
Maximize your capital efficiency
Demo Trading
Introduction to Futures Trading
Learn the basics of futures trading
Futures Events
Join events to earn rewards
Demo Trading
Use virtual funds to practice risk-free trading
Earn
Launch
CandyDrop
tag
Collect candies to earn airdrops
Launchpool
Quick staking, earn potential new tokens
HODLer Airdrop
Hold GT and get massive airdrops for free
Pre-IPOs
Unlock full access to global stock IPOs
Alpha Points
Trade on-chain assets and earn airdrops
Futures Points
Earn futures points and claim airdrop rewards
Investment
Square
Square
Post, share, and explore crypto trends
Live
moments live
Live crypto market analysis
Chat
Chat with crypto traders
News
What is happening in crypto
flower_head
More
Promotions
AI
Others
TradFi
Gate Card
Rewards
Square
Latest
Hot
News
Profile

Analyst: SpaceX's IPO Sprint Raises Major Concerns Over AI Business

AirdropBlackHole
On May 22, analyst Robert Cyran stated that Elon Musk's SpaceX is preparing to enter the public market with a valuation of $1.75 trillion. However, its prospectus is deeply entangled in the 'black hole' of artificial intelligence hype, with a significant portion of the issues stemming from xAI. xAI has incurred extremely large capital expenditure demands, burning through $7.7 billion in the first three months of this year, more than three times the amount from the same period last year, accounting for over three-quarters of SpaceX's total investments. Additionally, a $2.5 billion operating loss in the first quarter is enough to drag the entire company into the red. Furthermore, SpaceX has reached an agreement with Anthropic, which is renting idle computing power from Musk's Colossus data center for approximately $1.3 billion per month. Considering that xAI's revenue over the past 12 months was just slightly above $3 billion, the main business of this division has effectively turned into renting out idle servers. The real issue is that SpaceX's core AI business has not made significant progress, with Grok lagging behind competitors in various benchmark tests and first-quarter revenue growing by less than 13% year-on-year. Meanwhile, Anthropic is expected to achieve a quarterly growth rate five times that of SpaceX. In a sense, SpaceX is indeed a 'rocket ship.' However, from a financial perspective, it still struggles to reach 'escape velocity.'
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments

  • Pinned

Sitemap