Spending Like a Hyperscaler
SpaceXAI’s first public quarter showed hyperscaler-scale AI capex without hyperscaler cash flow, pressuring its stock and bonds.
Excerpt
SpaceXAI reported $18.37b of capex in its first public quarter, $15.83b of it AI infrastructure, against a $13.2b consensus. Amazon spent $53.1b in the same quarter, Alphabet $44.9b, Microsoft $41.0b & Meta $31.1b, & sequential dollar additions were comparable across all five. The difference is funding : operating cash flow covers 155% of capex at Microsoft & 106% at Meta but only 12% at SpaceXAI, with Oracle at 89%, Alphabet 87%, Amazon 84% & CoreWeave 39%. Both markets have repriced it, with SPCX closing at $108 against a $135 IPO price & every tranche of the $25b June bond trading below par.
Read at source: https://www.tomtunguz.com/the-newest-hyperscaler/