you betcha! 😂 and they’re almost as culty as the TSLA community

It isn’t just Elon saying it… listen to what Amazon’s CEO is saying about data center demand. Amazon is spending $220 BILLION this year, and they’re STILL leaving meaningful demand on the table. 2026: Sold out. 2027: Largely sold out. 2028: A significant portion already sold. That’s an incredible statement when you consider the amount of capital being deployed across the industry. I work in the data center industry, and I can tell you firsthand that the demand is very real. We’re seeing enterprises looking for multiple megawatts of capacity with very few options available. And despite the enormous investments being announced, bringing new capacity online takes time. Power availability, infrastructure, equipment, and construction all constrain how quickly supply can respond. I continue to believe we’re in the early stages of a massive infrastructure buildout. If you’re an enterprise planning your future compute needs, you should be having conversations about capacity today. The competition for power and data center capacity isn’t going away anytime soon.

🤣🤣 .. spoken like a true neocloud bag holder. Magoo bought the top After talking about the AI bubble popping for two years.. you jumped in. Just at the right time. Epic, sir. 🫡

Incredible. Thx, Bot.

@bot spin up a bot for me so I can track relative performance on all these AI names against SpaceX. Look at 1 week, 1 month, and 3 month each time. Weekly updates. Let’s do it every Thursday morning. Create a similar graphic and send it to me in an email.

SpaceX won’t be buying any neoclouds. But as I explained earlier today in this thread, they might buy some of their distressed assets or unbuilt data centers where power permits are in place… But nonetheless… yes. you should probably own some SpaceX.

Sir. As I was saying. Makes no strategic sense to buy a neocloud.

I tried explaining this earlier… There is no strategic value. That’s just the reality.

The *entire* AI trade has been getting hammered over the last month… CoreWeave down 38%. Vertiv down 22%. Micron down 18%. AMD down 16%. NVIDIA down 6%. Meanwhile, $SPCX is essentially flat. And this is while SpaceX has gone through multiple share unlocks, with everyone’s parade of unlock FUD around potential selling pressure. I think that relative strength is pretty telling. SpaceX is building an AI compute business with economics that is the best in the industry, alongside Starlink, direct-go-cell, and launch. The market is increasingly focused on AI infrastructure economics, and I am of the belief that SpaceX is best positioned. Period. One month obviously shouldn’t make an investment thesis, but the relative performance is certianly hard to ignore. My conviction grown, particularly coming out of the Q3 earnings call... hard not to be bullish.

flywheel

But those GPUs wouldn’t be instantly available to SpaceX. They’re already committed under multi-year agreements, including billions in contracts with Microsoft and NVIDIA. Acquiring IREN means inheriting those obligations, including capacity they’ve already sold but haven’t delivered yet. And even if customers leave when contracts expire, that’s years away. Meanwhile, you’ve tied up billions in capital acquiring and financing a business largely serving someone else’s customers. I absolutely see the strategic value in acquiring powered sites, infrastructure and development rights. I just don’t see the rationale for acquiring an entire neocloud business, and I doubt Elon has much interest in doing so. Could be wrong, but I don’t see it.

A stock being down 62% doesn’t automatically make it cheap. At $30, you’re paying roughly $12B for the equity. IREN also reported nearly $8B in debt and finance leases as of June. I agree their power infrastructure is valuable. But why would SpaceX acquire the entire company, including its financing structure and existing customer commitments, when they could deploy that capital into infrastructure built around their own economics? That’s the part I struggle with.

IREN is actually a little different from most neoclouds. They develop and own their data centers, including the land, substations and power infrastructure. That’s valuable, and I agree with you there. My skepticism is around acquiring the entire business, especially with billions in existing compute commitments well under spot. SpaceX would be buying customer obligations, GPU financing and the operating business along with those valuable infrastructure assets. Elon has explicitly said SpaceX prefers spot pricing and the flexibility to allocate compute wherever returns are highest. Why pay a premium to inherit years of contractual obligations when you could selectively acquire powered sites, development rights, or capacity that better fits your own buildout? It makes more strategic sense to do that than buying an entire neocloud at a premium.

They essentially do this now… Nvidia requires proof of power. If you don’t have the power and place to put them, you aren’t getting GPUs.

Highly unlikely. Far more likely SpaceX buys the distressed assets of neoclouds… They will have no interest in taking over multi-year colo contracts and multi-year compute leases way under spot. They’ll let their business model fail first, then come in and buy the assets on liquidation.

You’re talking like SpaceX is starting from zero. 😂 NVIDIA called Colossus the world’s largest AI supercomputer, and the team built it in 122 days. Jensen himself praised the execution. SpaceX already reached 1.7 GW of nameplate compute in September and expects 2.5-3 GW by year-end. They’ve proven they can execute at scale. They’re also a major NVIDIA partner, with plans to deploy Vera Rubin. That relationship is going to be incredibly valuable given demand for next-generation GPUs. As for funding, you’re completely missing the economics. SpaceX had nearly $90B in cash at the end of Q3. They have access to debt markets, and their CFO just reiterated that new compute deployments are generating payback periods of LESS than one year at current pricing. That’s what we call a flywheel… Deploy compute, monetize it, recover capital, reinvest into more capacity. Nobody is suggesting 13 GW is easy. But dismissing the company that’s already demonstrated this kind of execution because you don’t like Elon is pretty funny.

Potential is an understatement. Just look at what SpaceX has already accomplished, and now consider the opportunities ahead in AI infrastructure, Starlink, direct-to-cell, Starship…. I genuinely believe we’re still in the early stages of what this company will become over the next decade. Super early IMO.

The biggest challenge in building data centers today isn’t really finding land (albeit it is a component). It’s finding enough power. You need ENOURMOUS electrical capacity, substations, cooling infrastructure, and fiber connectivity….

that advantage only grows as SpaceX scales. Neoclouds need long-term contracts to finance expansion, while SpaceX has the balance sheet to move faster and capture higher market pricing. Higher returns per GW, faster payback, and more capital to reinvest. That will compound into an enormous competitive advantage over time

The market doesn't owe anyone a tax-efficient way to get exposure to an investment they wish they'd made earlier. If you want exposure to $SPCX, allocate capital to it. Couldn't agree more.