Comment by kadoban
8 hours ago
Anything is possible here, it's just there's no goddamn reason to do any of this. You're giving up the easiest means of cooling for no benefit and you add other big downsides.
It's scifi nonsense for no purpose other than to sound cool.
It's about creating a flywheel for scale.
Getting better at creating and erecting solar panels & AI datacenters on earth is all well and good, but it doesn't advance SpaceX or humanity very much. At lot of the bottlenecks there are around moving physical mass and paperwork.
Whereas combining SpaceX & xAI together means the margins for AI are used to force the economies of scale which drives the manufacturing efficiencies needed to drive down launch etc.
Which opens up new markets like Mars etc.
It is also pushing their competitive advantage. It leaves a massive moat which makes it very hard for competitors. If xAI ends up with a lower cost of capital (big if - like Amazon this might take 20 years horizon to realize) but it would give them a massive moat to be vertically integrated. OpenAI and others would be priced out.
If xAI wants to double AI capacity then it's a purely an automation of manufacturing problem which plays to Elons strengths (Tesla & automation). For anyone on earth doubling capacity means working with electricity restrictions, licensing, bureaucracy, etc. For example all turbines needed for electricity plants are sold years in advance. You can't get a new thermal plant built & online within 5 years even if you had infinite money as turbines are highly complex and just not available.
Hmm, Elon really did run that flywheel pretty well. He built the Roadster to drum up some cash and excitement so he could develop the Model S, then he used that success to do the Model X, and then he expanded capacity to develop the 3 and Y, and he reinvested the profits to develop the Model 2, finally bringing EVs to the masses, displacing ICEs everywhere, and becoming the undisputed leader of both EV and battery manufacturering.
Oh wait, that didn’t actually happen, because he got distracted or something? He doesn’t really have battery capacity worth writing home about, the Chinese are surpassing Tesla in EV manufacturing, and Waymo is far ahead in self-driving.
The amazing space computation cost reduction process sounds rather more challenging than the Model 2, and I’m not sure why anyone should bet on Elon pulling it off.
We must be living in parallel universes.
Tesla invested into the first Lotus roadster - and put that cash into the S then the X. Used that cash to build the worlds largest factories and make the 3 & Y which sold at enormous volumes - so large in fact that the S & X are now tiny single percentages of sales which is why Tesla is stopping manufacturing them now.
Tesla is one of the very few vehicle manufactures which makes a profit manufacturing vehicles. Tesla throws off cash which allows the flywheel to keep spinning.
Tesla is now operating fully autonomous rides. They've constantly proved their naysayers wrong at every turn in time. What the Chinese are doing in battery tech is irrelevant to US vehicles as they will never be allowed to sell in the US which is Teslas largest market.
The model 2 has the possibility of being profitable at insanely low purchase price which has the potential to completely disrupt the economics of US sales in such a way that legacy auto could well be bankrupt in 5-10 years. Who will be making Waymo's vehicles then?
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> Oh wait, that didn’t actually happen
Not sure how you can say that. Nothing lasts forever, especially in the face of Chinese market dumping, but for a while there Tesla really was the undisputed king of EV manufacturing, that flywheel is how he got there, he did release all the patents because he said from day one he didn't anticipate or aim for 100% market share for Tesla and assumed there'd always be lots of EV manufacturers in future. All that sounds like - mission accomplished?
As for Waymo being ahead, maybe today. But Waymo's tech stack is largely pre-DL, they rely heavily on unscalable techniques like LIDAR and continuous mapping. Tesla is betting big on the "scale up neural networks" model we know works well and their FSD can drive everywhere. They're perhaps behind Waymo in some ways, but they're also in different markets - Waymo won't sell anyone a self driving car and Tesla will. I wouldn't count them out. Their trajectory is the right one.
> I’m not sure why anyone should bet on Elon pulling it off.
PayPal, SpaceX existing at all, then doing reusable rockets, Tesla, FSD, large scale battery manufacturing, Starlink, X ("he can't fire 80% of employees it'll crash immediately"), robotics, training a SOTA LLM so fast even Jensen Huang was shocked ... the man consistently pulls off impossible seeming things in the face of huge skepticism. How many examples does it take before people start taking the guy seriously? Infinity examples?
There is nothing we need on Mars other than science. It's not a market because there isn't money to be made outside of what is required to do whatever economically useless but scientifically valuable efforts we can convince people to fund.
We can't build an independent colony we can't live there any time soon. Arguably it may never make sense to live there.
With that attitude mankind would still be living in caves. Why build a farm and stay in one place - we should follow the animals around.
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