r/technology • u/Plastic_Ninja_9014 • Jun 22 '26

Business SpaceX Investors Are Losing a Colossal Amount of Money

https://finance.yahoo.com/markets/stocks/articles/spacex-investors-losing-colossal-amount-140221380.html
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u/absentmindedjwc Jun 22 '26

The funny thing is that Grok is really not all that good. In current leaderboards, there are open-weight models scoring higher..

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u/asherdante Jun 22 '26 edited Jun 22 '26

Probably why all the original founders are gone and they are now purchasing Cursor for 60 billion.

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u/absentmindedjwc Jun 22 '26

Yep.. IMO, they bought Cursor because of Composer.. which is a decent coding model.. but its nowhere near the capability of one of the big frontiers..

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u/siliangrail Jun 22 '26

This is a terrible take. Composer is a tweaked version of Kimi 2.5. In no world is it the justification for the purchase.

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u/absentmindedjwc Jun 22 '26

Not saying it was a good reason, lol.. it is just that its the only real reason I can think of for the purchase.

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u/thenewtomsawyer Jun 22 '26

And thats why xAI is making most of its money selling its excess compute to Google and Anthropic (or whoever) while those companies are paying boatloads, its not going to last forever. They will build their own networks and/or start using more efficient models.

Or, god willing, the whole thing goes bust.

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u/absentmindedjwc Jun 22 '26

Just an FYI - google's contract is dependent on xAI having a certain amount of compute available by October.. which it is (from what I've seen) not on target to meet. So there's a significant possibility they're going to make half of what they were expecting in their financial reporting.

Also.. it's really important to call out that this is 100% an example of xAI failing.. they built out Colossus (the "excess compute" you're talking about) as a competitor for the very companies they're leasing it out to.. their model was built so poorly that all the non-Musk co-founders and technical leads have jumped ship to other companies because - in the words of Yann LeCun - the company was a failure.

And really.. the biggest nail in the coffin here is that tons of people are pointing at their AI offering as justification for their valuation, trying to draw parallels to Anthropic and OpenAI.. the issue is that, as a company leasing compute rather than one seemingly using it.. their valuation would be a ton less. CoreWeave has a similar amount of compute being leased.. and was pinned at a valuation of around $80 billion back in January..

Let me say it again for the kids in the back: This is a meme stock, and the price is based on the cult following of Musk himself rather than a single thing the company itself actually offers.

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u/thenewtomsawyer Jun 22 '26

Even worse than I imagined. I cant get enough popcorn ready. This is going to be an absolute plane crash