amit
@amitisinvesting
breaking down tech, business, & stocks $PLTR
Joined December 2021
974 Following 672.2K Followers
goodness Elon is being ruthless to the neoclouds
“That means the 200+ neoclouds are going to see guppy-level death and consolidation. Some will make it through, but not many.”
my theory is that for him to get that $500B-$1T ARR, it will primarily come from SpaceX’s datacenter business scaling exponentially
which means he wants every contract possible, every GPU possible, and he knows he can actually do this because he has a business that can get cheap capital compared to everyone else
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Pretty much.
As of the past few weeks, debt markets have almost entirely shut off access to money for any company that doesn’t have substantial revenue independent of AI data centers.
SpaceX closed $40B of debt for GPUs, but we’re investment grade and have Starlink & launch revenue.
That means the 200+ neoclouds are going to see guppy-level death and consolidation. Some will make it through, but not many.
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