Elon Web Services boosts SpaceX valuation
The bull case argued for SpaceX is that its emerging 'Elon Web Services' (EWS) hyperscaler business provides a massive, high-margin revenue stream that subsidizes xAI and justifies a premium IPO valuation.
The argument
The guests argued that leasing the Colossus 1 data center to Anthropic could generate $4-5 billion in incremental revenue this year, mitigating the massive CapEx of training frontier models. This infrastructure scale positions SpaceX to trade at a premium revenue multiple of 40-50x during its roadshow.
The thesis, stress-tested
✓ What validates it
- ✓SpaceX officially filing for an IPO at a valuation exceeding $2 trillion
- ✓EWS securing additional multi-billion dollar leasing agreements with other AI developers
▸ Risks discussed
- ▸Severe data center power and grid capacity constraints
- ▸Organized activist protests delaying local data center approvals
Hear it yourself
"And he basically said, like, I really felt offended and I was, you know, nervous about this because of my personal safety. And he called him out. Mondami came out with, like, a, a mealy mouthed response that didn't even apologize for what he did. Just doubled down on it, essentially. Alright. Let's get to the I don't know if you guys saw it or not, but Who cares? New York is becoming a flyover city. It's interesting way to put it. Don't disagree. Alright. First story, Elon just leased all of Colossus 1, his data center."
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