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burnerRhodov3 | on: SpaceX S-1
Edit: Page 122 of the S-1. They are paying SOFR + 0.75%. So around 5.5% on the $20B.

I'll keep the below for integrity sake:

Well, i'm sure SpaceX bought Xai using some kind of prefered share/debt financing, but that's not to say that XAI had the original debt financing.

We can never know what the exact details, and the exact financing is on this debt. Maybe it's tied to Elon's Tesla Shares, Maybe it's tied to a convertible, maybe it is actual "loans" from a bank. Even at $9b in debt, and you naivly assume they are paying 10% (Def not 20% as OP claimed), you are paying $900m a year, for the entirety of xAi. Including that in the calculations to rent out the entire compute is folly. Not only is 900M not directly attributed to c1, cause it's split between c1, c2 and all the training runs, but you can never verify the interest. And even then, one month of this deal pays for the whole year of interest expense.

So go ahead and lower my estimate by 10%... doesn't make a difference.

kgwgk | parent
> We can never know what the exact details

If only there was some SEC filing available disclosing additional information about the 6-months $20bn bridge loan which was on the news four weeks ago…

burnerRhodov3 | root | parent
oh, nice! thanks for this. This confirms spaceX has $20B at a SOFR + 0.75%. So around 5%-5.5%. Found on page 122 of the S-1. I assume they will retire all debt with the $50B raised from the IPO, plus have $30B to... dominate with starship. If starship is around $100m per launch right now, they can launch 300 ships with the IPO. or 30,000T in orbit.
hvb2 | root | parent
> If starship is around $100m per launch right now, they can launch 300 ships with the IPO. or 30,000T in orbit.

Uh, starship is still a development program. There's 1 launch pad right now able to launch V3. No starship has flown with an actual live payload. The starlinks going out the PEZ dispenser are probably the only thing launching on it anytime soon.

Basically, Starship launching thousands of tons to orbit isn't constrained by money but by time.

burnerRhodov3 | root | parent
we will see tomorrow, won't we :)

But you are right to call out the launch infrastructure as the true bottleneck. They have 3 pads currently under development. So in 6-9 months they'll have 4 operational pads.

Also, how do they heat tiles hold up? How fast can they catch, refurbish and relaunch is what remains.

I'm confident, and will be putting my money where my mouth is (By investing in the IPO) that they will have useful orbital payloads this year.