Dan Ives, partner and senior managing director at Yorkville Ives & Co., examines the first quarterly report from SpaceX as the company disclosed higher-than-expected spending on its artificial intelligence business.
——–
More on Bloomberg Television and Markets
Like this video? Subscribe and turn on notifications so you don’t miss any videos from Bloomberg Markets & Finance: https://tinyurl.com/ysu5b8a9
Visit http://www.bloomberg.com for business news & analysis, up-to-the-minute market data, features, profiles and more.
Connect with Bloomberg Television on:
X: https://twitter.com/BloombergTV
Facebook: https://www.facebook.com/BloombergTelevision
Instagram: https://www.instagram.com/bloombergtv/
Connect with Bloomberg Business on:
X: https://twitter.com/business
Facebook: https://www.facebook.com/bloombergbusiness
Instagram: https://www.instagram.com/bloombergbusiness/
TikTok: https://www.tiktok.com/@bloombergbusiness?lang=en
Reddit: https://www.reddit.com/r/bloomberg/
LinkedIn: https://www.linkedin.com/company/bloomberg-news/
More from Bloomberg:
Bloomberg Radio: https://twitter.com/BloombergRadio
Bloomberg Surveillance: https://twitter.com/bsurveillance
Bloomberg Politics: https://twitter.com/bpolitics
Bloomberg Originals: https://twitter.com/bbgoriginals
Watch more on YouTube:
Bloomberg Technology: https://www.youtube.com/@BloombergTechnology
Bloomberg Originals: https://www.youtube.com/@business
Bloomberg Quicktake: https://www.youtube.com/@BloombergQuicktake
Bloomberg Espanol: https://www.youtube.com/@bloomberg_espanol
Bloomberg Podcasts: https://www.youtube.com/@BloombergPodcasts
The latest financial news and market analysis, direct from Bloomberg TV, it is distributed globally, reaching over 310 million homes worldwide….brought to you by SloppBoxx.
![Sonny Fodera & Becky Hill – Say Something [Lyric Video]](https://sloppboxx.com/wp-content/uploads/2026/08/Sonny-Fodera-Becky-Hill-Say-Something-Lyric-Video-768x432.jpg)
![Dan + Shay – The Old Guys (feat. Cody Johnson) [Audio]](https://sloppboxx.com/wp-content/uploads/2026/08/Dan-Shay-The-Old-Guys-feat.-Cody-Johnson-Audio-768x432.jpg)
This makes no sense. If xAI needs so much capex for it’s own AI, why has it already announced that it has more than it needs and will rent it out to other companies? This is exactly the same as Meta. They have both now determined that they can’t make money with all the data centers, so they are panic leasing them to other people.
Burn all the money and wish for a Fenix? Does not sound like a sound investment target. Hey, SpaceX was $106.66 at aftermarket today and most likely $99 something tomorrow.
Please. Stop insulting your viewers with the clown in the clown suit. You cannot find someone else on Wal Street to honestly discuss the matters at hand.
Ives…lol…biggest talk-your-book, snake-oil salesmen in the history of the securities industry. He ended up settling on charges brought by the SEC – without admitting wrongdoing (wink, wink). I rate him as 3rd in his ability to disassociate from the truth. Trump and Elon are obviouly #1 and #2. Tough call between Dan and Cathie Wood for #3, but I give the nod to Dan.
So, they suddenly DISCOVERED they have a mix of legacy Nvidia chips…
So are you saying they didn’t know what they purchased?
Or is it more likely, they discovered there was little demand for xAI-s Grok, realized they had a majority of unused compute right before an IPO, and so begrudgingly sold that extra compute to their bitter rivals who actually can make use of it because they actually do have unmet demand?
What a mess and fluff piece but that’s standard for Ives. There’s a reason the stock is down.
There’s 0 sight to profitability. They have zero moat around datacenters no matter what partnership they have with Nvidia. Every single Ai company in the US, Europe, India, and many in the Gulf states have a partnership with Nvidia. They put money into everything. Are ww already forgetting Stargate?
And notice how they mixed AI revenue in one pool. That’s just to hide the horrible Grok sales. Most of that revenue comes from their rivals, Anthropic and Alphabet. That’s for bridge compute. Using old available Nvidia chips as they wait for their clusters ans datacenters to come online. These are not long-term customers. And there will be very few businesses able to replace the billions they pay.
And of course, it’ll be interesting how they handle and book the need to replace 70% of their old H100 and H200 chips in the next 2 years.
Then take a look at their CAPEX. ~$28 billion. That’s 1/7th to 1/9th of what real hyperscalers are spending to build out their own chips, models, and datacenters. To be able to spend that, they had have record breaking IPO that’s down nearly 50% from its highs. And even then, it still had to go immediately take on debt for more cash. It can’t IPO twice, more debt will only get more expensive considering their financials, and they make very little free cash flow to come anywhere near being able to fund all of their ambitions in the medium term.
More utter nonsense from Dan the clown Ives