late night project going way, way late....saw this on the Xer tonight (link below)
Will this be tied to Terafab in any way? I'm guessing no but the nuclear energy could be very valuable at first. Not sure how long these take to build out. Once Terafab starts putting DCs in space, it's all over for the land DCs. SpaceX/Terafab will own the compute/DC market. The Amazons, Microsofts, Googles, IBMs, and Oracles will be using SpaceX DCs for compute. It's inevitable because SpaceX will be getting free solar energy 247x365 from the sun in space and never really need anything more (that we know of). I see why this is such a monster money-maker for Elon. It's enormous. Nothing anywhere close. If we balk, they'll have others. It's too big. In the grand scheme of things, the compute that the cloud companies use right now is very small on the GPU landscape (chips for mining) but that will pick up as they all become AI companies (which seems to be the inevitable).
The cloud world right now runs through West/East coasts and all over the world. This would probably go away and the space world would take over (funny that they called it cloud but it never really left the atmosphere - not the case for space DCs). Space DCs are the future and SpaceX/Terafab will run it. Nobody even close. That's why Google has already promised $2 billion/month to SpaceX for their compute. It's probably a great deal at this point. I'm sure Amazon will come up with their own space DCs but they are probably set back right now with the Blue Origin (owned by Bezos) accident a couple weeks ago. I never read up on it but they basically blew up a launch site in Florida a couple weeks ago. It was all over the news for a couple days. Bezos didn't say much. Neither did Elon.
Elon and Larry Ellison are best buds so I don't see why they won't rely on each other down the road. Oracle is not near the cloud company that Amazon is (in overall market share) but they've gone all-in on AI with the DC being built in Abilene. Again, this may be temporary until the space DCs get going. Space will be much cheaper to run DCs in the long run and it certainly is the future. Why nobody ever came up with this idea is beyond me. I guess we never had anywhere near the capability to even think it until now. Not sure if this will affect the mining DCs around the area but my guess is that they'll eventually go in space as well once they see SpaceX doing it (no idea on this though).
One way to think or look at SpaceX/Terafab/etc is Amazon when they entered the cloud industry. They already had the DCs because they needed them to run Amazon.com (retail). The cloud company (AWS) was a side project that became as big as their retail division based on the fact that they had most of the infrastructure already to do it. They just needed to expand a little and market it (which they did). They had a 5-10 year head start on the technology as Microsoft, Google, IBM, and Oracle had to play catch up. These other companies had the name brands but they eventually had to run them in Amazons DCs to keep up with them. They all have their own DCs now but they probably won't be sustainable when space DCs kick in. SpaceX/Terafab is similar to Amazon starting cloud in that they know they need Terafab and space DCs to make this profitable or even possible (economically) because we don't have the energy nor the land space right now to accomplish this kind of manufacturing (24x7x365). Elon knows this and has already jumped ahead of the curve by going into space. It's brilliant and makes me believe in this guy even more because the cloud companies right now kind of have control of the job market globally (bringing in the best talent) but they'll lose that eventually if they don't adapt in some way. Again, AI plays a huge part in that though.
Just rambling on some things I learned tonight I guess. Feel free to butcher whatever I posted. I'm sure I got something wrong. This is one of those landmark items in civilization though.
I hope I did not offend anybody with this post. If I did, please come see me at my address in my profile so we can talk.