Subsea Cables & Internet Infrastructure

The chart shows US business paid AI subscription growth. Musk's AI company is in last place. He shoved xAI into SpaceX in order to siphon off SpaceX cash flow and IPO proceeds to finance his struggling venture. On its own, no one would lend to xAI given its third tier position in the AI service and its $1 billion per month cash burn. Now Anthropic is leasing a huge chunk of xAI data center capacity to estimate its models. Supposedly worth about $1.25 billion per month. I say supposedly because contracts can vary from rock solid to as soft as jello. Indeed, some industry contracts are really just letters of intent, non-binding expressions of customer interest. In this case both sides can cancel the agreement with only 90 days notice. Again, the Musk cheerleaders are prematurely celebrating. What this deal implies is that there's very little demand for xAI's models. So just as X pivoted from social media platform to AI, it is now pivoting to the AI data center b...

Amazon plans to dominate the business market for LEO connectivity. Its Ultra phase array antenna in satellite field tests with corporate beta users has simultaneously clocked 1.2 gigabits down and 400 megabits up. Indeed, LEO management has publicly stated that its download performance will be 2x better than Starlink's and enjoy 6x to 8x better uplink performance. The uplink edge is essential to Amazon's strategy. While residential Internet traffic is lopsided with downloads predominating, business and network applications are often symmetric or nearly. Even Starlink's 400 megabit service requires several hours to upload large gigabyte files.   Amazon is targeting mobile operators and IoT aggregation hubs for its 1 gigabit service. Mobile towers are often long distances from the nearest fibre optic network in many countries. Amazon will carry the local traffic back to the mobile operator's POP or data center. Indeed, Amazon's service is ideal for remote data center...