Alphabet, which owns 6.11% with a permanent board seat, of SpaceX joins the IPO fraud with a fake deal for $920m/month of Xai datacenter rentals (www.cnbc.com)

submitted 1 day ago by humanspiral@lemmy.ca to c/technology@lemmy.ml

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Nevermind that colosus 2 of xAI was supposed to serve Grok, or expected (paying $60b for) Cursor composer models, and they are renting out capacity instead of using it...

Google has massive out clauses for following through on this BS deal. They are slightly overpaying, but in off chance that GB200 rental market is strong in 2027, they have the option of following through if they can resell capacity, though have full cancellation rights.

Google can dump 100% of their SpaceX shares prior to cancellation date. They also have 63% gradual dump rights ahead of most other locked up SpaceX investors.

SpaceX merger with xAI was based on lie of economic viability of space datacenters and terrafab, and IPO expands on the fraud, with so much of financial industry invested in the fraud.

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[-] humanspiral@lemmy.ca 4 points 1 day ago

There are signs that IPO is too big for market. 30% retail, and $135/share fixed price are because demand is not present. The illegal private/SPV market is trading below $129, where SPV entity that was not a fraud about to go bankrupt, and confident in the IPO would buy back shares up to close to $135.

This BS by google is desperation to pump their existing stake. Anthropic's headline $1.25B/month deal is also a fraud. Big discounts until after the IPO, and same cancellation rights.

xAI got a made up (no one putting cash in) $250B valuation in its merger. Including Twitter it has barely any revenue, and without having to rent gpu datacenter space, was still losing $10b/year for a not particularly competitive Grok model.

What’s withholding SpaceX from selling more stock with an even shorter time until they can be dumped?

97% of the stock is already issued. 3% goes to new IPO bagholders, shortly later, passive index forced buying from the 3% market. The 97% are the ones with accelerated dump rights, that kick in a percentage shortly after fraudulent accelerated index inclusion date.

this post was submitted on 05 Jun 2026

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