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- [00:01]
A
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- [00:30]
B
Elon Musk has done another newsworthy action of acquiring Xai with his company SpaceX. So SpaceX now officially owns Xai. They're planning to build data centers in space. Tons of crazy stuff. Today we're going to get all into that and talk about it. But before you do, Jane, why don't you tell them about our school community?
- [00:48]
C
Yeah. Every single week, Jamie and I post an exclusive piece of bonus content on our school community. We don't post it anywhere else where we break down the tools and techniques we are using to make money with AI. And this the last couple of weeks we've been doing a segment on Vibe coding, Vibe building. I am not a developer in any way, shape or form. And for developers there, like no offense, but the site of code makes my eyes bleed a little bit. And so we have essentially I've created an entire software. It's called podcaststudio.com, which is like a clone of Spotify for Creators, a podcast distribution service. I've added tons of AI features in there and I actually just created it for myself to be able to upload one audio file. It fills out tons of data for me, it translates my podcast, it dubs my voice. This podcast AI hustle that you're listening to right now, we have this going out in tons of different languages. Spanish, French, Mandarin. If you speak any of those language, go find it. And all of that is done by me just literally uploading one file and all of it gets translated, dubbed, posted to multiple places. And it's all done with this one software that I built using Lovable. And we've tried other. We talk about other Vibe coding tools in there as well. I do not know anything about development. I've created this complete software if you're interested in how I did that. We have a tutorial and videos and classes on how to make like anything if you're not a developer, how to make any software, along with dozens and dozens of other videos of different tools and AI things that we're working on. So if you want to check it out, there's a link in the description. $19 a month. You can join the AI hustle school community. And yeah, we'd love to have you as a member of the community. There's over 300 people in the community, so it's an awesome place to learn and grow with AI. All right, let's get into what's going on with OpenAI right now, so. Or, sorry, with SpaceX right now. So the thing that I think is really interesting about this is the fact that there seems to be this, like, data center play. Because at first it seems like, oh, Elon Musk is just trying to, like, merge some of his companies together. We know he's got an IPO coming. He probably doesn't want to have an IPO for XAI and an IPO for SpaceX. So I'm assuming he's just sticking the two companies together and is like, well, throw it all together kind of. Kind of thing. But in order to, you know, throw something like an AI company and a spaceship company together, I think there needed to be, like, a reason. And so the reason has been putting data, AI data centers in space. Now, this isn't the first time that this concept has kind of been out there. I've heard of a lot of startups that have raised money for doing, for like, building drugs in space. And while it sounds crazy, they swear that there's like a economical benefit because there's like, no gravity. And like these certain kinds of drugs need, like, really specific machinery. And there's like, it's, you know, nice and cold and so there's like, no heat to do cooling and like, blah, blah, blah. There's like all these different, like, alleged benefits of building drugs in space and apparently data centers in space. Jamie seems skeptical about this whole thing when I first started talking to him about it. So I want to get your opinion on this.
- [03:46]
B
I don't know, I mean, so Elon Musk is just an interesting character, right? And he's got all these different companies and businesses. To me, like, merging them seems a little bit fishy. Like, is it one of those investor, you know, appeasement plays or trying to show revenue? You know, apparently XAI is burning a billion dollars a month right now. That's what this article says. So that's a lot of cash he's losing there. Is he trying to boost, you know, his shareholder value by combining companies? I don't know. It all seems a little bit strange, you know, however, SpaceX, you know, and the Starlink satellite thing is actually turning out to be quite the, quite the company that I think people wasn't really on people's radar and it's, I, you know, I think Starlink is, has potential really to change the world and, and these data centers. Maybe, you know, maybe he's on something. I don't know, I'm not as smart as him, so I'm not, I'm not gonna make any judgments. But it's an interesting play for sure.
- [04:43]
C
Definitely. I have to read you. There is just this absolutely crazy sentence in email or sorry in I guess the post that Elon put out about this whole merger and I guess doing this whole data center thing. He said while launching AI satellites from Earth is the immediate focus, Starship's capabilities will also enable operations on other worlds. Thanks to advancements like in space propellant transfer, Starship will be capable of landing massive amounts of cargo on the moon. Once there, it will be possible to establish a permanent presence for scientific and manufacturing pursuits. I think that was kind of getting at like some of the drug kind of manufacturing stuff that other startups have already been kind of like working on. This is the crazy thing he said though. Factories on the moon can take advantage of lunar resources to manufacture satellites and deploy them further into space. By using an electromagnetic mass driver and lunar manufacturing, it's possible to put 500 to a thousand terawatts a year of AI satellites into deep space, meaningfully ascend the Kardashian scale, and harness a non trivial percentage of the sun's power. It's just wow, factories on the moon to send satellites and okay, as far as harnessing a non trivial amount of the sun's power, I will say something that's really interesting. I mean we see this with other types of satellites already in space. Like this is a new technology, but because of, because you're closer to the sun, the radiation's more intense. Solar does work better. There's just like all these different interesting elements in space that apparently they're going to be able to harness with all this. Now of course it's no secret that SpaceX is coming up to their IPO this year, apparently and they are literally the most valuable public or private company in the world. So this is going to be a massive ipo. It's going to be interesting. There's a lot of other players watching where this goes. You have companies like Stripe, which is also a massive private company, and then you have OpenAI and Anthropic and all these other players. But it seems like this is just a completely different scale because SpaceX had, last I checked, a $200 billion value valuation. And I think open ERA at the time of this merger, XAI might have been like at 40 to 80 billion. I gotta go check that. So anyway, SpaceX is meaningfully larger, but sticking them together now, it's going to be a really interesting combination to see what they're able to pull off with this.
- [07:05]
B
Yeah, it says the combined value of the two companies together is $1.25 trillion.
- [07:11]
C
With a T. Oh, okay. I was, I was a little bit off on that then.
- [07:15]
B
Absolutely mind blowing. So I don't know. That's, that's crazy. You know, I think, you know, the infrastructure side of AI is definitely an issue. And especially with all the cooling, you know, a lot of environmental concerns. Honestly, maybe space is the best place to put all this stuff. Who knows? Again, I'm not claiming to be as smart as Elon, but definitely an interesting play.
- [07:41]
C
Yeah. And one thing that I will say is like right now, when you look at like, okay, here's the other funny thing that's happening that I want to talk about, where the revenue is coming from for all of this, but something that a lot of people have been posting on is the fact that, is that X, which is, you know, formerly Twitter, got acquired by xai, and then x I got acquired by SpaceX. So it's like all. So SpaceX technically owns Twitter right now, which is kind of hilarious. And there's a lot of memes about, a lot of memes about this. But mostly it's because on X, if you post a lot, right, you get paid like ad revenue, basically. And so everyone's always. There's all these people posting about how they're so excited to finally be working for SpaceX and accomplishing their dreams of basically being an astronaut because they post on Twitter.
- [08:25]
B
That's funny. Love it.
- [08:26]
C
So that's pretty funny. Okay, but speaking of the revenue that's actually coming from like SpaceX, where it's actually getting most of its money, about 80% of its revenue is from launching their own Starlink satellites, which is, that is really crazy because I mean, this is a company that they have massive, you know, $100 million contracts with the government and with a lot of other people for launching satellites. I mean, this is where they make all their money is like launching satellites for the government and for other people. I didn't realize that it is now at 80% of this is Starlink, which of course is an incredible product. Right. There's all these satellites in space. I know tons of people with like my. I think my dad has a Starlink dish for his rv. Whenever he travels he can turn it on and just get super fast, you know, Internet in the middle of the forest. I know people that do like van life that do that. I know people that own boats and they have Starlink on their ship. Which personally, when I was growing up, my family bought a sailboat and we sailed for a whole year from, we bought it in California and we sailed to the South Pacific. So we spent a whole year sailing around like Tahiti, Fiji, Samoa, like all the islands in the South Pacific. And we had no Internet. The best thing, we had the best innovation. If you know what a ham radio is, is ham radio, right? It's like these kind of like high frequency long range radios, but like very ghetto. Someone had figured out basically they made like an email system on our computer that would you tune into a certain ham radio frequency and it would basically send like a fax, like a beep, beep, beep, beep, like a bunch of funny like beeping sounds which would go to a receiving tower which would decode it into an email. And then that had the technology to send like an email to people. So people send an email, would go to that receiving tower and then you could like send your faxes and receive your faxes from the. It was, and it was like this certain one hour window every day that we would like do the send and receive and like it was, it was crazy technology to get that whole thing even set up on our boat. My dad had like all these crazy tech people like trying to figure out this system before we left. And so yeah, I remember sending and receiving my daily email. The world is a completely different place with Starlink. Whether you're on a boat, whether you're on Van Life, whether you're on remote parts of the world, you literally get satellite Internet access anywhere. And it's actually pretty fast. So in fact I know people that got Starlink in places like in America where just the WI Fi, the Internet was slow, there was no fiber had been installed and they just got Starlink because they're like, this is literally faster and cheaper than, you know, whatever Broadcom or Spectrum or these legacy dinosaur companies were offering in their neighborhood. So I knew that this was like a big business. I didn't realize I was 80% of SpaceX's business. Like that is a ton of the revenue. It makes sense, right? It's a very useful product, but that's a ton of the revenue. And so yeah, now the whole company is worth $113 billion apparent. According to or, sorry, I guess that was when Xai acquired X, that company was worth $113 billion. And now that that's been added into SpaceX, which has much higher revenue, is at 1.25 trillion. Absolutely incredible.
- [11:30]
B
Crazy. Well, yeah, we'll be sure to keep you guys updated on any developments with this story. And if you got any value out of this episode, we would really appreciate a rating or review wherever you're listening. Really appreciate those. And be sure to check out the AI Hustle School community where you can learn how to grow and scale your business using AI, or even just make money on the side. Thanks for listening and we'll see you next time.