THE NEOCLOUD BOOM

Summary from the TLDR AI newsletter

SpaceX bought xAI, took the two Colossus data centers Elon built, and started renting them to Anthropic for $15 billion a year. SpaceX did $18.7 billion in total revenue last year after 23 years of building rockets, so they almost doubled the company in a quarter by becoming a cloud provider. The bigger math is wilder, the AI buildout adds up to $7.5 trillion of spend over the next 4.5 years, about 5% of US GDP and on par with the 1880s railroad boom. Even if neoclouds only catch 20% of the $13.5 trillion of value that buildout creates, that's $2.5 trillion up for grabs because no handful of hyperscalers can build it all.