“There's nobody better on planet Earth than Elon at converting electrons to tokens. He was building EWS all along.” - Brad Gerstner on how becoming a hyperscaler impacts SpaceX’s outlook @altcap on @elonmusk's cloud strategy: “It's a critically important evolution to the story. SpaceX has this five-layer cake: launch, connectivity, compute, hyperscalers, space datacenters, and then applications and models, and then other bets. And now we see the ace card that Elon's playing. He was building EWS all along, and so I estimate that this is going to generate, in this year, an incremental $4 to $5B of revenue on top of what analysts estimate is in the mid-20s. That's a material amount of incremental revenue to offset the cost of the investments that he's made here, and that will subsidize, to Chamath's point, all that he's investing to build the next generation of Grok. Remember, too, that he has three facilities, Colossus, Macro Hard, and Macro Harder. 1.2 gigawatts in Macro Hard and Macro Harder in Blackwell. So he's given the one that's kind of less connected, H100's great for inference, to Anthropic. He's monetizing it in a big way. It's terrific for Anthropic, and it solves what I think was the biggest question in the valuation story, which is what if he spends ahead of xAI's revenue? It takes the pressure off xAI delivering immediate revenue. Now he becomes an immediate competitor in the hyperscalers. I don't think this is the last announcement. And I would just say finally, everybody has talked about how we don't have enough power, how we don't have enough compute, how the revenues would not show up this year, but the chaos that is American capitalism somehow finds a way.”