@failedLyndonLaRouchite @nswigger SpaceX loses money because the only profitable arm is StarLink. SpaceX and X.com lose some money, and xAI loses a ton like every other AI company.

LLMs are very expensive to make and operate. All LLM companies have burned through billions trying to hook customers through subsidized pricing. Datacenters have physical world realities that software does not and bringing them online is slow. So compute hungry LLMs are getting real world limits imposed, so LLM companies are moving to usage based billing. Enterprise customers are getting a taste of what’s to come with exploding LLM costs. Learning these tools are actually not cheap.

So SpaceX hiding xAI, OpenAI, Anthropic, etc. need to IPO before the truth comes out. Their investors want a return ASAP so they don’t take huge losses when the truth is exposed. To do this they changed the rules of the Nasdaq to allow these upside down companies to be placed on the index so index funds and other algorithmic buyers push the risk to the public.

The public buys and takes on high risk, early investors can cash out to a level of risk they are happy with. A handful of billionaires and new trillionaires laugh all the way to the bank because their latest confidence game worked.

Privatize profits and socialize losses at its finest.