Musk Targets 2GW AI Compute

SpaceX just dropped jaw-dropping numbers: $18.4 billion spent this quarter, most of it pouring into artificial intelligence and compute power, with Musk promising 2 gigawatts of AI compute and Grok 5—its next-gen AI—before year’s end. Starlink doubled subscribers, revenue hit $7.8 billion, but profits stayed elusive and the stock slid below its IPO price, weighed down by a tidal wave of shares set to hit the market and a surge in short bets. Investors are left to wonder: can Starlink’s rapid growth and big-name AI contracts from the likes of Anthropic and Google turn these wild investments into a sustainable, cash-generating machine?

But here’s the catch: all this ambition means staggering capex now, with profitability kicked down the road. Starship rocket launches are ticking up, and Musk is hyping lunar satellite factories and “Starmind”—satellites with onboard compute—but each new project raises the stakes. Meanwhile, rumors swirl about a Tesla-SpaceX merger, but regulatory headaches and investor nerves make formal integration unlikely for now. Instead, expect more behind-the-scenes data sharing and AI cross-licensing before any bold corporate moves.

Featuring insights from Reuters, The Wall Street Journal, Barron's, Fortune, and observer.com—this episode unpacks what’s fueling Musk’s biggest bets and what it’ll take to keep investors on board.

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