alt Hacker NewsElon makes a relatively good case in the Dwarkesh podcast. I recall it like this:
1) Energy infra is going to be seriously limited on the production side well, well below demand
2) energy engineering solar for space requires less materials than for gravity-based solar (!)
3) you cut out distribution network needs when you just launch stuff all per-pod in space
4) SpaceX thinks it can create a scalable vertically integrated production facility to turn raw materials into space datacenter pods, with the exception of chips.
As a business bet, this is predicated on 10,000x inference demand growth - if we have that, and SpaceX can get the integrated production rolling, and get Starship launching, then these will be actively utilized at scale.
Whether you are bullish on the whole plan should, I think come down to your take on those priors: 10kx growth, ability to manage supply chain and production, Starship outlook, and silicon access.
I'm not bearish on this after listening to the podcast; it has a very Elon-like returns distribution - if they're wrong on a lot of this, they'll probably have some moderately price-competitive datacenter facilities in space and a lot of built organizational knowhow while Brooklyn journalists dunk on them for spending all that effort to just replicate what we have on Earth. If they're right about most of this, they'll have an unreplicable head start, both due to years of experience, and due to the cheap launch they gambled on ten years ago, they'll have a nearly insurmountable moat.
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Everything relating to a datacentre that you can do in space you can do more easily on earth, regardless of 10,000x inference growth or supply chain or production or starship or silicon. I just don't think you can be cost competitive with earth bound data centres if 'protected from the poors' isn't a selling point.
By the way, 10,000x inference growth would look like what happened with cryptocurrency mining - after a couple of years, you'd be needing to upgrade all your machines with ASICs and the market would be flooded with very cheap graphics cards. I doubt that upgrading space data centres would be fun.
Every one of those points is false or an outright lie, though.
You forgot 5: SpaceX has a monopoly on deploying satellites to LEO, with practically unlimited room for growth, and far less red tape and obstacles than anywhere on Earth. Whatever R&D and operational costs this insane engineering feat might have are offset by their market advantage, and Musk's Elizabeth Holmes-ian capability to fund his projects, in addition to relying on his own personal wealth and all of his other companies combined.
The fact that this lunatic is polluting humanity's view into the universe mainly for enriching himself and his shareholders, and that everyone is playing along with this, is sickening.
>Elon makes a relatively good case in the Dwarkesh podcast.
Are we still going to pretend that the man who has gotten every single prediction wrong so far knows what he is talking about?