SemiAnalysis says SpaceX (SPCX) could build data center capacity matching Google's nearly three-decade buildout in just 18 months, reaching 13 GW by 2027 after raising its target from 10 GW. The firm has identified more than 9 GW of sites, including 3.6 GW under construction, and says SpaceX's build times of about five months at MiniHard and a targeted four months at Gun Range are far faster than the typical 8–12 months. However, it flags a possible power shortfall above 300 MW at Colossus 2, as tracked generation capacity of more than 8 GW falls short of over 9 GW of planned data center capacity. SpaceX's AI business includes Anthropic's May agreement to use all of Colossus 1's capacity and Google's access to about 110,000 GPUs, with a combined annual contract value of $26 billion. SPCX rose nearly 4% to $141.31 on Tuesday, its second straight gain, though it is down 12% year to date.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
SpaceXdata centersAI investmentcloud computing
Open a keyword to see other news on the same topic.
Related tickers and likely impact
GOOGL
• NeutralAlphabet Inc. (Class A)
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $3.5T |
| Close on 11/03/2026 | 279.91 |
| Change that session | +0.33% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Amazon, Google and Microsoft Are “Absolute Jokes” at Building Next to SpaceX, Says Sequoia Partner
Sequoia partner Shaun Maguire's model projects SpaceX revenue rising from about $51.5 billion in 2026 to $731 billion in 2028, with about four-fifths coming from renting out AI compute. The model assumes rivals will struggle to build terrestrial compute, and Maguire called Amazon, Google and Microsoft “absolute jokes” at building in the physical world compared with SpaceX. Wall Street consensus is far lower, at $336 billion of revenue in 2028, while SpaceX says its Colossus data center was built in 122 days, against an industry norm of about two years. However, SpaceX rents compute at effectively spot market rates, one customer (identified by Bloomberg as Anthropic) accounted for 34.5% of third-quarter revenue, and analysts expect free cash flow of negative $140.7 billion in 2027. To reach Maguire's 2028 figure, SpaceX would need to grow capacity nearly tenfold from the roughly 2.2 gigawatts it expected by the end of October.
- Elon Musk Predicts a Wave of Failures Among AI Cloud Companies. Is SpaceX Stock a Sell?
Elon Musk warned on X that debt markets have largely stopped lending to companies without sizable revenue beyond AI data centers, and predicted that most of the more than 200 neoclouds will fail or be absorbed by others. SpaceX (SPCX) said it closed $40 billion in debt to buy GPUs, citing its investment-grade credit and revenue from Starlink and launch. Its super intelligence segment generated $7.56 billion of the company's $14.58 billion third-quarter revenue and made $431 million at the operating level in the quarter, even after $1.2 billion in stock-based pay linked to the Cursor deal. Management forecasts fourth-quarter capital spending of $35 billion to $40 billion, and the payback from new GPUs depends on rental prices staying high. The stock, at around $147, is about 30% below its June 16 closing high of $211.39, and the author says Musk's warning does not change his view, while the stock at about 34 times sales is not cheap at today's price.
- Musk warns over 200 AI neoclouds face ‘guppy-level death’
Elon Musk warned on X that more than 200 specialist AI cloud providers, or neoclouds, could fail or consolidate as lenders stop financing firms without substantial revenue outside AI data centers. He said SpaceX secured $40 billion of debt financing for GPUs thanks to its investment-grade status and revenue from Starlink and its rocket business. The warning follows a Gartner forecast that more than 80% of neocloud providers will cease operating independently by 2030, as AI providers may spend nearly $1 trillion on infrastructure in 2026 and another $6 trillion from 2027 to 2030 without sufficient revenue for profitable returns. Bitcoin miners that have pivoted into AI infrastructure, such as IREN and Core Scientific, could also be affected. Meanwhile, SpaceX's “Super Intelligence” business generated $7.6 billion in third-quarter revenue, up 830% from a year earlier and more than half of the company's $14.6 billion in quarterly sales.
- A Surprising New Rival Is Threatening CoreWeave (and It's Not Best Known as an AI Cloud Company)
CoreWeave shares have come under pressure due to its heavy debt, plans for large AI data center spending, surging interest expenses and rising competition in the neocloud market. According to the article, SpaceX (SPCX) is rapidly scaling its own neocloud business: in its third-quarter report, AI business sales rose 830% year over year to $7.56 billion, more than its space ($1.77 billion, up 6%) and connectivity ($5.25 billion, up 69%) segments combined. The AI segment's sales likely came mostly from renting out compute, while CoreWeave posted revenue of roughly $2.58 billion for comparison. The article argues that SpaceX's financial strength and positioning could pressure CoreWeave's pricing and make it harder for CoreWeave to secure next-generation processors from Nvidia, which holds a larger stake in SpaceX than in CoreWeave. It concludes that SpaceX's rise does not necessarily doom CoreWeave, but it adds stress points to the company's scaling and GPU lifecycle assumptions.
- Google Is Paying SpaceX $11 Billion a Year for Compute. Here's the Concentration Risk Nobody Is Pricing In.
Google has started paying SpaceX $920 million per month, or $11 billion per year, to lease xAI's cloud infrastructure through 2029, rather than building more data centers to fill its shortage of Nvidia GPUs. According to Synergy Research Group, Google held 15% of the global cloud infrastructure market in the second quarter of 2026, placing third behind AWS (28%) and Microsoft Azure (20%), while Google Cloud revenue rose from $19.2 billion in 2021 to $58.7 billion in 2025. The deal gives Google access to a cluster of roughly 110,000 GPUs, and Alphabet owns a 4%–5% stake in SpaceX. The author warns the arrangement adds concentration risk: Google is effectively funding xAI's growth into a cloud competitor, it reinforces Nvidia's dominance, and the cluster sits at xAI's centralized facilities, including Colossus in Tennessee, where power failures or disruptions could affect many tenants.
- Why SpaceX has the potential to be the world's largest hyperscaler
SpaceX shares rose after its third-quarter results beat estimates, with the AI business generating $7.56 billion in revenue. Kenny Polcari and Daniel Newman argue SpaceX could be not just the fifth hyperscaler but potentially the largest, if Elon meets his ambitious plans, and mention a possible merger with Tesla. The discussion notes top-tier customers paying over 50 million dollars per megawatt and Elon's claim that capex returns arrive in under one year. The speakers also dismiss oversupply concerns, citing comments from Jensen and Sundar Pichai and spot pricing, and expect strong results from Amazon, Microsoft and Google next week.
Related markets
Latest news
- What Silver Standard Resources (SSRM) Said on Its Q3 Earnings Call
SSR Mining (NASDAQ: SSRM) produced nearly 104,000 gold-equivalent ounces in the third quarter and remains on track to meet full-year production guidance, but expects all-in sustaining costs to end about 10% above the top of its guidance range due to Puna mine-plan changes, higher royalties, diesel, labor and supplies. Quarterly revenue was $448 million and free cash flow before working-capital changes was about $111 million; at quarter-end, the company held $1.6 billion in cash, no debt and $2.2 billion in total liquidity. An updated Marigold plan extends the mine's reserve life to 2040, while the planned Converse acquisition could add 150,000–170,000 ounces of annual gold production from the early 2030s. In the first nine months of 2026, the company repurchased nearly 17 million shares and reinstated its dividend.
- HFIC plans to transfer its capital stake in Eximbank
Ho Chi Minh City State Investment and Finance Company (HFIC) plans to transfer its stake in Eximbank (EIB) through stock trading on HoSE, citing difficulty in managing the investment and protecting its rights amid frequent senior leadership changes at the bank, and aiming to recover capital for portfolio restructuring. HFIC began investing in 2006 with initial capital of 12.15 billion VND and currently holds nearly 8.5 million EIB shares (0.45%). According to the shareholder list updated on 14/10/2026, Viconship (VSC) holds 18.775 million EIB shares (1.01%). At Eximbank's third extraordinary general meeting of 2026, shareholders elected Phạm Thị Huyền Trang to the board, and she was appointed CEO from 1/8/2026, replacing Trần Tấn Lộc. The meeting also approved removing the 6% cap on foreign ownership, with the limit to follow the Law on Credit Institutions.
- Masan simultaneously appoints two new senior executives, one of whom previously worked at TikTok and Alibaba with a workforce of 20,000
Masan has appointed David Tan Wei Ming as Group Director of Strategy & Investment and Rob Chang as Group Director of Human Resources, effective 2/11/2026, with both reporting directly to Group CEO Danny Lê. David Tan, who previously held leadership roles at KKR and TPG Capital, also stepped down as an independent board member and will lead efforts to access global capital markets, simplify the group structure and shape capital allocation strategy. Rob Chang has over 15 years of international leadership experience at technology groups, helping expand ByteDance/TikTok's international organization to more than 20,000 staff, overseeing HR for AliExpress across more than 30 markets at Alibaba Group, and most recently serving as Chief People & AI Officer at V-Tech. He will roll out the Masan HR Digital Twin model to track workflows, feedback and performance in real time. Masan's stated goals include deeper access to global capital markets and data-driven HR governance under its 'Go Digital, Go Global' strategy.
- Russia launches massive strikes, paralysing Ukraine's energy system
Russia used dozens of missiles and hundreds of drones to strike Ukraine's energy infrastructure, leaving many regions without power. According to President Zelensky, overnight on 2–3/11 Russia launched 289 drones, 17 ballistic missiles and 59 cruise missiles at power plants and substations from Odesa to Rivne, and DTEK said three of its five thermal power plants had stopped operating. Kyiv lost power along with at least six other areas, and water supply and transport were also disrupted. The attack came less than two days after a short humanitarian ceasefire in Oleshky ended, and just a week before the US-mediated peace talks planned in Abu Dhabi on 10–11/11. German Chancellor Friedrich Merz said the planned trilateral talks were the right step but Europe must be part of the process, and that he had seen no sign Russia would seriously negotiate a ceasefire.
- Trương Gia Bình and Lieutenant General Trương Sơn Lâm unveil major plans between FPT and MobiFone
On 3/11, MobiFone Telecommunications Corporation and FPT Corporation signed a memorandum of cooperation to develop secure digital infrastructure, strengthen businesses' technology self-reliance and advance national digital transformation, in line with Resolution No. 57-NQ/TW of the Politburo. The partnership combines MobiFone's telecom infrastructure and customer ecosystem with FPT's research, development and solution-deployment capabilities across telecom, technology, commerce, media and training. Planned areas of cooperation include MVNO, 5G SIM, M2M, IoT and AI-based value-added services, as well as cloud computing, big data, cybersecurity, 5G/6G and UAV. Trương Gia Bình suggested starting with concrete tasks and pilot projects to identify obstacles, then refining proposals and expanding cooperation. The two companies' ties date to a 2020 strategic cooperation agreement, under which FPT's mobile network began operating on MobiFone's infrastructure.
- There's a 99% Chance That Democrats Retake the House, and History Says This Shift Will Have a Huge Impact on Stocks
According to prediction market Kalshi, as of 8:50 p.m. ET the odds of Democrats retaking the House had risen above 99%, meaning President Trump would likely face a divided Congress from January 2027. A Retirement Researcher review of S&P 500 returns from 1926 through 2023 found an average annual return of 7.33% during 34 years of divided Congress with a Republican president, compared with 16.63% during 15 years of divided Congress with a Democratic president. The article notes that gridlock would make major tax and spending legislation hard to pass, while debt-ceiling talks would be harder. UBS puts the chance of a Democratic sweep of both chambers at 50%. Still, Carson Group's Ryan Detrick notes that the six months after midterm elections have historically been strong, and the S&P 500 hasn't been down in the six- or 12-month period after a midterm over the last 75 years.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.