Subsea Cables & Internet Infrastructure

"It's not out of the question that, at some point, Starlink will operate most of the world's internet," Musk said." Despite this optimism, shares of SpaceX fell by more than 7% in after hours trading on Tuesday, wiping out gains made during the day.

 

The 2Africa cable has been up and down since Wednesday. Repair was declared completed and all services live Friday Morning Abidjan time. WACS should be fixed by Wednesday next week.

 Oracle's stock price is diving. Why? A lesson for the AI industry. An AI data center customer faces no switching costs as they are simply installing data and software in bare metal servers leased to them by the data center. The result is a buyer's market as opposed to the traditional sellers market in which Equinix and Digital Reality operate. Oracle, the software company, reinvented itself as a cloud provider and then pivoted to AI data centers when the cloud angle proved disappointing and AI became hot.  But in a traditional data center the customer installs their equipment and this makes leaving the facility very expensive and difficult as it means they lose an operating network node. In many cases the exit costs can be in the millions of Euros or dollars and require a network redesign to ensure traffic flows are not disrupted. So the traditional data center is more like the Hotel California in the Eagles song where you can check in, but never leave.  In contrast, mos...

Nvidia guaranteeing OpenAI's 250 billion in data center commitments is a huge gamble given that OpenAI is forecasting it will burn through $665 billion in cash by 2030. Nvidia's entire future depends on OpenAI's success or failure. The lack of prudence and financial discipline is astonishing. Russian roulette, anyone? History is quite clear: never finance money losing customers. Any credit check would have disqualified OpenAI using its own financial projections. For more details, https://thetechcapital.com/nvidia-to-backstop-250-billion-of-openai-data-centre-commitments/.

Just a few months ago Linkedin Prophets were proclaiming SpaceX hegemony. It was in their words 'a space utility' that would dominate space infrastructure due to 'vertical integration', Musk Infallibility, and 'rocket launch cadence'. Now their only excuse is 'short selling' as though $18 billion in annual revenues naturally implies Space is worth two trillion dollars. This inference is built on the flimsy foundation of rocket usability and 'they launch a lot of stuff into space'. In fact, SpaceX is a space trucking company. Logistics. There is no intellectual moat, and in fact, SpaceX has no patents on rocket design. Not a single one. It has an edge on rocket design, but textbook economics tells us abnormally high profits attract competition and similar designs. Just last week a Chinese company completed their first successful reusable rocket launch.