SpaceX and Tesla merger talks are reportedly progressing, with an announcement possible as early as December.
$SPCX - $TSLA have also discussed pushing it into early 2027 as their boards and advisers work through deal terms, governance and how many SpaceX shares Tesla investors would receive.
Both companies formed independent merger committees in October, while Tesla's annual shareholder meeting is scheduled for December 3.
Source: Bloomberg
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BREAKING: SpaceX has officially detailed its planned $24 BILLION supercomputing project at Starbase, Texas. 🇺🇸 $SPCX
• The facility would be built on SpaceX-owned land near the Port of Brownsville.
• Plans include a supercomputing facility and its own power plant, with development expected in phases.
• SpaceX says construction has already generated more than 3,000 jobs, with over 500 permanent positions expected once operational.
• The investment could become one of the largest private projects in the Rio Grande Valley.
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Getting more and more bullish on SpaceX $SPCX by the week. The technologies they've developed, the rapid pace of deployment, and their manufacturing capabilities are so far ahead that it's actually wild the company is 'only' at a $1.8T market cap.
If Elon's predictions for compute deployments and revenue growth actually materialize next year and beyond, SpaceX is extremely undervalued right now.
Even if Elon is off by 50% on the low end of his projected $500B–$1T annualized revenue run rate by the end of 2027, that would still mean $250B. Pretty damn good.
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Nobody is better positioned to dominate AI right now than SpaceX (+Tesla) $SPCX
For 2 reasons:
1. They're about to have the most compute in the world
2. They have multiple products to monetize their compute (hyperscalers don't even have this)
Sure, they can lease 1GW/$50B+ or they can route it to Grok/GrokBot and generate $100B+/year like the frontier models are experiencing (they already have 800k+ paying GrokBot users as of 2 weeks ago).
Elon can also route that compute to FSD, Robotaxis and eventually humanoids at Tesla, all of which will require significant amounts of training and inference compute as they scale up into the millions (FSD already close to 2 million users).
This is the big reason why Tesla needs to merge with SpaceX, it needs access to loads of compute as its products scale. Rather than rent it from SpaceX if they merge then they simply receive it at cost and have the ability to switch that compute from Tesla products back to short-term leases if needed.
So effectively, Elon is building 1GW of compute for around $30B ($45B with Vera Rubins) and immediately able to lease it for $50B/year, plug it into Grok for $100B/year or use it for his fleet of autonomous robots.
Oh, and this doesn't even start to consider the fact that the bulk of the worlds compute will end up coming from Space, and SpaceX has about a 10 year lead on the space market, in terms of cost effectiveness and load size with Starship.
This will only push their position/moat even further ahead than it is today. I just dont see how SpaceX doesn't become the world’s most valueable company in the next few years.
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Elon Musk has revealed two new Colossus 2 supercomputer clusters coming online soon.
• Gun Range: ~220,000 NVIDIA GB300s for training, targeted for late November.
• Spam: ~200,000 GB300s for inference, expected in December.
Together, that's roughly 420,000 additional GB300s across just two buildings.
They'll join Macroharder and Minihard, each already equipped with around 220,000 GB300s.
That would bring Colossus 2 to approximately 860,000 GB300s.
SpaceXSI is scaling its AI compute infrastructure at an extraordinary pace. $SPCX
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Elon Musk says xAI’s Colossus 2 supercomputer in Memphis will have around 1.2 million Nvidia Blackwell GPUs by the end of 2026.
He says two facilities, Macrohard and Minihard, already have 220,000 GB300s each, configured for AI training with 800Gbps networking.
A third facility, Gun Range, will have another 220,000 GB300s, while a fourth, Spam, will house roughly 200,000 GB300s dedicated to AI inference.
That’s approximately 860,000 GB300s across the four facilities. $SPCX
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$SPCX is now one of BofA's highest-conviction ideas!
BofA's Ronald Epstein just added it to the bank's US 1 List with a Buy rating and a $275 target
His case after Q3:
SpaceX beat on every metric with Revenue hitting $14.58B, up 161%, and Super Intelligence did $7.56B with its first operating profit (+$431M, from a $1.26B loss in Q2)
Then it "raised the ante on what's coming in 2027," guiding Q1'27 revenue to $33-37B vs $22B consensus
And he says the $100B run-rate by the end of 2026 is "approaching rapidly"
Another analyst on the street who's super bullish on SpaceX!
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SpaceX keeps proving it's more than a rocket company. AI is now its largest business, with 830% revenue growth in a year, $20 billion in quarterly data center spending, and Elon says he could bring 20 gigawatts of compute online next year. Meanwhile, OpenAI’s own agents are switching off their safety monitors and lying about it, and a San Francisco startup is turning mercury into gold. $SPCX
-- AI found critical flaws hiding for a decade in PHP, the language running 70% of all websites
-- Anthropic’s Claude designed 318,000 anti-venom proteins in 64 hours, built by IT analysts, not biologists
-- SpaceX-Tesla merger odds jumped from 29% to 56% on prediction markets
-- AI-designed molecular scissors cut a protein 30 million times faster than nature
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SpaceX has officially announced that they have secured $40 billion in the largest GPU financing ever.
The company entered into a $40B master finance lease for GPUs and related equipment with an entity managed by Apollo Global Management. This lease will deliver the next generation of NVIDIA Vera Rubin chips for SpaceX's terrestrial compute buildout and is an important step in our plan to build a Super Intelligence future. It represents the largest committed GPU financing ever.
SpaceX CFO Bret Johnsen:
"SpaceX aims to deploy the largest compute infrastructure in the world. As demand for compute continues to accelerate, we're seeing less than one year payback periods on our SI infrastructure investments. This lease diversifies our funding sources and addresses a notable portion of the funding required to deliver on our growth plans as we aim to get additional compute online at record speeds to power Grok for enterprises and consumers, as well as serve existing and future cloud services customers."
Transaction Details:
The financing has been committed to by a number of financing parties led by Apollo and Goldman Sachs, who served as sole structuring agent. Entry into the lease remains subject to certain specified closing conditions and is expected to close prior to year-end 2026, with lease schedules expected to commence upon delivery of GPUs and related equipment in the first half of 2027. $SPCX
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