Breaking
TROperation on 'James the Whale'! American fraudster caught in IstanbulCNThe woman suffered from emotional instability after being hospitalized for a long time. She fell to her death from the 20th floor on the day she returned to the hospital.CNMLB》The wild cards were swept by the White Sox, the Astros and the general manager broke upCNFocus Stocks》Wistron: plunged 6%, all five electronics brothers are in MexicoCNIncrease the flexibility of agency employment! Examination Yuan will pass loosening restrictions on job allocation at the grassroots levelCNA minivan hit a wall in Taichung early in the morning and the driver died tragicallyCNThe delivery boy got into trouble for saying something on the way. Four men were dissatisfied with the retort and were violently assaulted in the street.CNMajor car accident on National 3 Changhua road section! A small truck collided with a construction truck, and the front of the truck was completely smashed. The woman died tragically.AUBreaking: Greens senator takes leave amid allegations of comments towards womenTR'Fever reducer' claim in the death of a three-year-old child! Overdose is life threateningTROperation on 'James the Whale'! American fraudster caught in IstanbulCNThe woman suffered from emotional instability after being hospitalized for a long time. She fell to her death from the 20th floor on the day she returned to the hospital.CNMLB》The wild cards were swept by the White Sox, the Astros and the general manager broke upCNFocus Stocks》Wistron: plunged 6%, all five electronics brothers are in MexicoCNIncrease the flexibility of agency employment! Examination Yuan will pass loosening restrictions on job allocation at the grassroots levelCNA minivan hit a wall in Taichung early in the morning and the driver died tragicallyCNThe delivery boy got into trouble for saying something on the way. Four men were dissatisfied with the retort and were violently assaulted in the street.CNMajor car accident on National 3 Changhua road section! A small truck collided with a construction truck, and the front of the truck was completely smashed. The woman died tragically.AUBreaking: Greens senator takes leave amid allegations of comments towards womenTR'Fever reducer' claim in the death of a three-year-old child! Overdose is life threatening
Newsgather
All StoriesWorldSportsFinanceTechScienceHealthCultureClimatePoliticsSpace
BackRaising the money is just the first step! Musk revealed: If you want to build an AI data center, you must do "these three things"
Raising the money is just the first step! Musk revealed: If you want to build an AI data center, you must do "these three things"
Developing
自由时报48 minutes agoBusiness2 min readChinaView original

Raising the money is just the first step! Musk revealed: If you want to build an AI data center, you must do "these three things"

ai data centerMuskTesla

Quick Look

  • Musk warned that although the demand for AI data centers is strong, successful financing does not mean that companies can build and operate complex systems.
  • Actual implementation faces three major challenges: power, cooling, and network systems.
  • Even SpaceX has a top team and finds the project extremely challenging.

AI-generated summary

Why It Matters

Global technology companies are investing huge sums of money to expand artificial intelligence data centers, but the market's concerns about investment returns have increased, resulting in pressure on AI-related debt, and investors are demanding higher bond yields to compensate for financing risks.

Font size

The demand for AI data centers is booming! Musk poured cold water: there are three major difficulties behind it. (AFP)

[Financial Channel/Comprehensive Report] Global technology companies are investing huge sums of money to expand artificial intelligence (AI) data centers, but can they be built if they have money? Tesla CEO Elon Musk warned that market demand for supercomputer data centers remains strong, but successfully raising funds does not mean that companies have the ability to build and operate these complex systems. Even though SpaceX has the world's top engineering team, actual execution is still quite difficult.

According to the US media "Benzinga", Musk posted on the social platform X on Tuesday that it is not that there is a lack of demand for supercomputer data centers. In fact, the demand is indeed very strong. However, he emphasized that obtaining funding and actually building complex hardware facilities that require huge power, cooling and network systems are two completely different things.

Please read on...

Musk was responding to a post about pressure on the AI credit market. As investors' doubts about the return on investment in AI infrastructure have increased, the market has begun to demand higher bond yields to compensate for the financing risks caused by data center expansion.

"Reuters" previously pointed out that rising interest rates and concerns about investment returns are putting pressure on AI-related debt, including the data center financing plans of CoreWeave, Oracle and large cloud service providers, all of which have attracted market attention. As AI infrastructure sets off a massive wave of borrowing, investors are beginning to examine whether these projects can generate enough cash flow in the future to cover increasing financing costs.

However, Musk believes that the real problem is not demand, but whether companies can implement huge investment plans. He said that SpaceX has an extremely good team, and its performance is far superior to other competitors in terms of the efficiency of sending cargo into orbit, but even so, the team still believes that the related projects are very challenging.

Musk's companies themselves are also actively expanding their AI infrastructure. According to reports, its Colossus supercomputer was completed in just 122 days, and was later expanded to 200,000 Nvidia H100 GPUs, with long-term plans to move towards 1 million GPUs. Musk has also said that Colossus 2 may deploy more than 1.2 million Huida GB200 and GB300 chips in the future.

In addition, Tesla also continues to expand its internal AI computing facilities. According to the second quarter filing, Cortex 1 and Cortex 2 in Texas already have more than 205MW (million watts) of computing facility capacity, and plan to further expand before the end of the year.

Musk’s AI infrastructure layout even extends to space. SpaceX believes that future orbital data centers can use solar energy, radiant heat dissipation and Starlink laser communications to avoid some of the land, power grid and cooling constraints faced by ground data centers.

However, space data centers also face serious challenges. "Reuters" quoted experts in April this year as pointing out that the space data center may face engineering and economic problems such as extremely high launch costs, heat dissipation difficulties, limited hardware upgrades, and harsh space environments.

Grasp the economic pulse with one hand. Click here to subscribe to Free Finance Youtube Channel

Open Questions

  • Can the space data center overcome the limitations of heat dissipation and hardware upgrades in actual operations?
  • When will the AI ​​infrastructure expansion plans of Musk’s companies reach their long-term planning goals?
  • When will the pressure on the AI ​​credit market ease?

Related Topics

ai data center
PeopleMusk
OrganizationsTeslaSpaceXCoreWeaveOracle
PlacesUnited StatesTexasspace
TopicsMuskTeslaspacexcolossuscortexOrbital Data Center
This article was originally published by 自由时报.

Related Stories

Focus Stocks》Wistron: plunged 6%, all five electronics brothers are in Mexico
BREAKING·

Focus Stocks》Wistron: plunged 6%, all five electronics brothers are in Mexico

Affected by the heavy fall of the four major U.S. stock indexes, the weighted index of Taiwan stocks once plunged 1,600 points during the session. The share prices of the five major electronics companies in the AI OEM group were all in the red. Wistron fell more than 6% during the session and fell below the 180 yuan mark. Compal, Pegatron, Quanta, and Inventec also fell simultaneously. The legal person believes that the fundamentals are stable, but the short-term stock price may be affected by geopolitics, inflation, and the uncertainty of U.S. interest rate policy.

自由时报
1 min read
High salaries in the AI industry are difficult to benefit all people. Legislators propose the establishment of an AI National Growth Fund
Business·

High salaries in the AI industry are difficult to benefit all people. Legislators propose the establishment of an AI National Growth Fund

Legislator Chung Jia-bin pointed out that the operating profit rate of Taiwan's AI industry is 3.5 times that of other industries, but employees account for only 7% of the population, and high salaries have not driven the median. He proposed the establishment of an AI national growth fund to encourage the AI industry to engage the public through the issuance of corporate bonds or special shares. Ye Jun-hsien, chairman of the National Development Council, promised to discuss it and emphasized that the issuance of special shares by enterprises requires a board of directors resolution. He also revealed that the development regulations for small, medium and micro enterprises will be implemented, and it is expected to increase 100 billion yuan in funding to assist small, medium and micro enterprises in their transformation within eight years.

自由时报
2 min read
The EU-China trade war is about to break out! Petrol and electric vehicles are just the first step. It is rumored that the EU is considering targeting "these" industries
Developing·

The EU-China trade war is about to break out! Petrol and electric vehicles are just the first step. It is rumored that the EU is considering targeting "these" industries

After forcing China to accept restrictions on automobile exports, the EU began to consider follow-up actions in industries such as chemicals and machinery. People familiar with the matter revealed that Germany will urge the implementation of similar restrictions on Chinese imports. Brussels pointed out that products such as furniture and motorcycles have been severely affected by Chinese imports. EU Economic Affairs Commissioner Dumb Rovsky said the trade imbalance was not limited to the auto industry, and the agreement reached last week was seen as a well-thought-out concession. But Chinese state media warned that if the EU "played new tricks" it would take action in response, and EU leaders will meet on Thursday to discuss next steps, a move that would jeopardize the broader goal of avoiding a trade war.

自由时报
3 min read
Focus Stocks》Wiying: Yaochi Golden Mother sold more than a thousand pieces yesterday and plunged to the limit today
Urgent·

Focus Stocks》Wiying: Yaochi Golden Mother sold more than a thousand pieces yesterday and plunged to the limit today

Wiwynn (6669) was slashed by 1,034 contracts by "Yaochi Golden Mother" 00981A yesterday. Today, the stock price hit the lower limit of 1,905 yuan, with a trading volume of 7,284 contracts. There are still 2,179 lower limit price commissioned sell orders that have not been completed. Foreign investors bought more than 1,088 lots yesterday and ended their four-day selling streak, but investment trusts sold more than 1,591 lots, self-operated dealers sold more than 152 lots, and the three major legal persons sold a total of 655 lots. The company announced yesterday that it will join hands with Ayar Labs and Creative Electronics to demonstrate the integrated computing system and real-time telemetry monitoring for the first time at the 2026 OCP Global Summit.

自由时报
1 min read
Taiwan stock market fell 1,630 points, 10th worst in history! TSMC leads nearly 1,500 companies in a big dive, and the index breaks through 47,000
BREAKING·

Taiwan stock market fell 1,630 points, 10th worst in history! TSMC leads nearly 1,500 companies in a big dive, and the index breaks through 47,000

Affected by doubts about interest rate hikes caused by higher-than-expected inflation data in the United States in September, Taiwan stocks plunged 1,630 points on Thursday, the 10th largest drop in history. TSMC led nearly 1,500 listed electronics stocks in a plunge. Asian stocks plummeted across the board, Korean stocks triggered a circuit breaker, and Japanese stocks plunged more than 3,200 points.

自由时报
1 min read
More on this topicai data center