Hello Wednesday!
Hello, Curse and Coffee friends,
Today, we explore the xAI and SpaceX coming together.
Hit reply and let us know what you think (we read all of your kind words).
Coffee at the ready…
The Big Sip
The take: SpaceX's acquisition of xAI is a bailout in disguise. Investors know it.
What happened: SpaceX announced Monday that it's buying Elon Musk's AI startup xAI in an all-stock deal valued at $1.25 trillion.
Why it matters: xAI burns $1 billion per month and has earned roughly $200 million through September. OpenAI hit $20 billion. SpaceX's profitable rockets are now propping up an AI company that burned $7.8 billion in cash in nine months.
What to watch: SpaceX's June 2026 IPO. It now carries a cash-burning AI division that generated child sexual abuse material (CSAM) last month.
Musk says he's building data centres in orbit. Translation: the burn rate looks better from space.