LAST week Elon Musk announced that within 30 months Space X would be launching orbital AI data centres in space. Within a decade he plans to
send starships every two days to a city he will build on the moon. A few years ago predictions such as these would have been laughed out of
court. Not any longer. After a string of outlandish business successes across a raft of technologies from electric cars to spaceships, today
the worldrCOs biggest investors are prepared to back almost any new idea that comes out of MuskrCOs hyperactive brain. The result is that Musk is singlehandedly building companies that will change the very nature of
human existence.
MuskrCOs ambitions for humanity are seemingly limitless. For Tesla, theworldrCOs first and only profitable mass market EV company, the aim is rCyto accelerate the worldrCOs transition to sustainable energyrCO. Space X has rCythe ultimate goal of enabling people to live on other planetsrCO; X CorprCOs (formerly Twitter) mission rCyis to be the town square of the internetrCO. For xAI, his 2023 startup, the aim is to rCyunderstand the true nature of the universerCO. Neuralink, MuskrCOs bioelectronics company, is creating a generalised brain interface rCyto restore autonomy to those
with unmet medical needs today and unlock human potential tomorrowrCO; and the Boring Company, whose Prufrock 4 can tunnel at one mile per week,
aims rCyto solve the problem of soul-destroying trafficrCO.
So, what are MuskrCOs overarching goals in life? First, he believes that planet Earth faces existential risks. Transport needs to move away from fossil fuels. But he is not a swivel-eyed fanatic. He rejects the idea
that there is an imminent climate catastrophe. Of much greater concern
to Musk is global rCyde-populationrCO as the world falls below replacement fertility levels. Musk seems to be single-handedly trying to solve the problem. As hyperactive in his private life as business life, he has had
an estimated 14 children by four women.
In the short term, Musk believes that both fossil fuels and nuclear
power have a role to play in EarthrCOs insatiable need for energy, but rCyonce you understand the Kardashev Scale (the measure of human usage of available solar energy) it becomes utterly obvious that essentially all energy generation will be solarrCO. Apart from EVs, his main contribution
to global energy is solving the problem of solar energyrCOs intermittency. Over the last three years, Tesla has become the worldrCOs largest supplier of utility-scale batteries systems for renewable energy storage.
Second, Musk wants to avert civilisational collapse. In a recent conversation at the World Economic Forum in Davos, he opined that rCywe
need to do everything possible to ensure that the light of consciousness
is not extinguishedrCO. If Earth fails, his colonies on the moon and Mars will keep the flicker of human consciousness alive.
Third, Musk believes that, through technological advance, particularly
in AI and robotics, the world can achieve rCysuperabundancerCO. In a recent Moonshots podcast interview with Peter Diamandis, Musk advised: rCyDonrCOt worry about squirrelling away for retirement in ten or 20 years. It
wonrCOt matter . . . [there will be a] universal you-can-have-whatever- you-want income.rCO
In the fields of AI and robotics, most technology experts, including
Jensen Huang of Nvidia, believe that Musk is the market leader. The fact that institutional investors are willing to hold Tesla stock, which is
on a forward P/E ratio of over 200 compared to an average of 25-35 for
the other rCyMagnificent SevenrCO US tech stocks (such as Apple and Amazon), suggests high confidence that MuskrCOs robots, four-wheeled and humanoid, both driven by vision-only neural network training, will be fabulously profitable.
TeslarCOs Freemont, California, factory is being converted to produce humanoids at a rate of 500,000 per annum by 2027 and 10million per annum
by 2030; meanwhile TeslarCOs Gigafactory in Texas is expected to hit a similar run rate of MuskrCOs ground-breaking two-seater robotic cybercars over the next 18 months. Robotic Full Self Driving (FSD), operating in
Tesla taxis in Austen and San Francisco, is now rCya solved problemrCO.
These are ambitious targets. But he proved doubters wrong with EVs and
the market is betting that he will prove his critics wrong again. As
Huang has observed: rCyElon is singular in his understanding of
engineering and construction and large systems and marshalling
resources. ItrCOs just unbelievable.rCO
In 2024, xAI, using 100,000 Nvidia H100 GPUs (graphics processing
units), built the worldrCOs largest supercomputer, Colossus, for
development of its Large Language Model (LLM) Grok in just 122 days rCo a task that would have taken other companies two or three years. Recently
xAI launched Grokipedia to compete with the increasingly rCywokerCO Wikipedia. (Two years ago, Wikipedia removed my own entry). Colossus II, using a million of NvidiarCOs latest B200 GPUs, started operation on
January 17.
xAI, which in March 2025 merged with X Corp, the social media platform
whose fortunes Musk resuscitated, has now been acquired by Space X. The merged company is expected to go public later this year at a valuation
of $1.5billion (-u1.1billion) rCo about the same as TeslarCOs current market capitalisation. Will Tesla and Space X merge to create a broadly based technological behemoth? Maybe.
Space X dominates its industry, operating 70 per cent of all satellites
in low earth orbit. Last year the company accounted for 85 per cent of
all tonnage launched into space. Later this year its Starship, the
largest spacecraft ever built and reusable to boot, is expected to go
into commercial operation. The Gigabay spaceship factory, built at
MuskrCOs newly established city of Starbase in southern Texas, will have
an annual manufacturing capacity of 1,000 Starships.
With a payload of more than 100 tons, Starship will be able to carry
50-70 of its powerful new V3 satellites into orbit; Space XrCOs Starlink,
a satellite-based broadband and telephone service, which has grown its customer base to 10million since launch in 2022, is expected to double
this year. Soon the more powerful V3 will link directly to mobile
phones. Apple should watch out.
With $850billion (-u632billion), Musk is by far the richest man in the world. His net worth is more than double that of Mark Zuckerberg
(Facebook) and Jeff Bezos (Amazon) combined. So what drives Musk to work
17 hours a day, seven days a week? Neurologically, Musk is just
different. In May 2021, during a Saturday Night Live show, he revealed
that he has AspergerrCOs syndrome. Perhaps too, Musk was driven by a demanding, autocratic father and a difficult childhood in South Africa
where he was often the subject of bullying.
An engaging interviewee, Musk is possessed of a manic hyena laugh. His
jokes are often puerile. However, his mood can change quickly; ex-wives
have described how he can rapidly descend into a rCyblack dogrCO mood. Interviewers should be aware: two years ago, a lazy BBC journalist was brutally skewered. He grills employees intensively on technical details
that would be beyond most CEOs; astonishingly every engineer in his
company is quizzed every week. Musk hates paper-shuffling middle
management. His management structures are flat. He refuses to spend
money on advertising. He runs a lean ship and regularly sacks 10 per
cent of his employees. Despite this, his managers will run through brick walls for him, though they do tend to burn out. Top graduates are not
put off by MuskrCOs corporate work ethic. His companies have long been top employment picks for physics, engineering and aerospace graduates.
Musk may be a ruthless manager, but he is harshest on himself. He has no
off switch, often calling meetings late at night or in the early hours
of the morning. When faced with what he described as rCyproduction hellrCO in the manufacture of his first mass-market EV, the Tesla Model 3, for
18 months he worked the lines and slept on a mattress under his shop
floor desk. When he could not find a rocket designer to build his first spaceship, he took over the job himself. Leaving Tesla aside, Musk
combines being CEO Space X with being its chief engineer. At X he
remains chief technology officer.
In China, Musk enjoys cult status. So why is he so hated in America and Europe? Politics, of course. Musk, a lifelong Democrat, treacherously
for some, swung behind Donald TrumprCOs presidential bid. After TrumprCOs election victory, he was hated by the left for cutting US government
waste. In Europe, Musk has been aggressive, perhaps overly so, in his criticism of its sclerotic and censorious bureaucracies.
Musk is a self-described rCyfree speechrCO absolutist. The governments of Germany, France and the UK, which have been particularly tongue-lashed
on X, are variously seeking to silence him. However, financial pressure
will not make him back down. As Musk famously said to US advertisers who aimed to starve X into bankruptcy: rCyBlackmail me with money? . . .-a go f*** yourselvesrCO. It was a suitably blunt answer to countries whose GDP, within the next five years, will be eclipsed by MuskrCOs personal wealth.
Francis Pike
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