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by vessenes
34 days ago
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It's worth being specific: "Will this decrease Revenue?" -- only if demand for high quality tokens is inelastic. If demand is instead elastic (grows with cheaper pricing) then revenue will likely increase. "Will this lower earnings?" -- they have a current inference margin for their old models, and with the Elon deal in place, they have a new inference margin. It might be better or worse than their old one. If it's worse, then they'd need to see a concomitant increase in usage. If they don't, then yes it might lower earnings. "Will this lower corporate value?" -- no - not least because this company is going to be owned by SpaceX approximately 90 days after IPO -- so all the new owner will care about is being benchmark competitive with Anthropic and oAI for the first n quarters. If they can do that, it will massively increase the corporate value of SX; it's hard to build a frontier lab. |
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