TechCrunch AI highlights a deal that, while significant, may raise more questions than it answers. Google’s reported $920 million monthly expenditure on SpaceX’s compute resources seems excessive for a company already sitting atop the AI compute hierarchy. The timing, coinciding with SpaceX’s IPO, suggests this could be as much about bolstering SpaceX’s valuation as it is about Google’s AI ambitions.
Critics argue that Alphabet’s spending spree, now exceeding $180 billion in capital expenditures, may reflect a lack of strategic focus rather than genuine necessity. The cancellation clause included in the deal further hints at potential instability, leaving room for skepticism about its long-term viability.