SpaceX is currently a state-funded powerhouse with vital government contracts, but merging it with a controversial social media site and a struggling AI lab raises serious questions about its future. We are being told this merger creates a company worth $1.25 trillion, but look at the math: you are marrying a profitable rocket company to xAI, which is currently burning $1 billion per month, and X, a platform facing global criminal investigations.
To justify this, Musk is pitching ‘data centers in space,’ a technical fantasy that ignores the laws of physics. In a vacuum, there is no air to move heat, meaning these high-density AI chips would require massive, fragile radiators just to keep from melting. Between the cooling crisis, constant hardware-killing radiation, and the lack of a legal framework for lunar data mining, it feels less like a business plan and more like a desperate search for cash to fund an ‘everything empire.’ Turning a successful company into a less successful one is a bold strategy, and for an investor focusing on the actual science, the numbers just do not add up.
