TBOY Lite for Thursday, October 1st

0:00This is Nick, this is Jack. It's Thursday the new Friday. October 1st in today's spot is the best one. Yeah, this is a T-boy. Here's the top business story you need to know today. Today, SpaceX Rockets will launch a Google miniature data center into space. The tech industry is betting everything on this. But will data centers in space actually work? I mean, it sounds like the trailer to a movie, right? I mean, I like to think that our stories are kind of as entertaining as movies next out. I mean, interstellar 2, Chris Nolan, we know your list, then here's the plot, here's the screenplay. Yeah, these what factories were in the industrial revolution of the late 1800s, data centers are to the AI revolution. Get this, Zucks Hyperion Data Center is one single computer, the size of Manhattan Island, and hundreds of data centers that size are in the world. They are. But just about every single one of them is hated by the local community. But this one data center developer has offered all 4,500 residents in one Pennsylvania town, $10,000 each if they approve a single data center.

1:03And the town is saying no. They just don't trust the developer and they think it's a bribe, which it kind of is. And the reason here, well, data centers, they aren't quite as good neighbors as Mr. Rogers is. They drink up all the water, they raise the local electricity prices, big carbon footprint and they're noisy. So techies, they know that building 1,000 data centers for AI is critical, but it's an uphill battle here in America. So the solution that Elon and everyone else is talking about, if no one wants data centers on Earth, let's put them in space. I mean, Jack outer space, nobody's backyard, nobody can say nimby and the real estate up there is measured in light years. So let's attach giant computers to solar panels, have them orbit the earth and beam the compute down to us. Man, it'll give new meaning to the term cloud computing, like literally in this case. But everything we just said, that's insane. That can't possibly work, right? It does sound like a work of fiction, Jack. Well, today we're going to answer that question. Will computers in space actually function? Well perfect timing, because today Google launches project sun catcher a space mission to test a data center up in space.

2:04Matt Damon, time to get on the screen. At 11, 18 a.m. Pacific today, a SpaceX ride share rocket is going to launch holding 130 different payloads is bringing up to orbit. And one of those payloads is a cluster of four tensor processing units made by Google. Tensor processing units, TPUs, it's Google's version of NimbyDia's GPUs. Okay, but Jack, first potential issue here, you've got a 10 minute long rocket trip to get to low earth orbit. And the vibrations and intense G forces up to 50 to 100 G's, that could disrupt the chips on board. Okay, Jack, another problem we should point out here is the radiation. Another event in cosmic rays up in outer space can wreak havoc on electronics. Okay, and not to go full rocket scientists, but another problem we got to talk about. Cool. GPUs get really hot when they're computing your chat GPP prompt. They must be cool. Here on earth, we basically blow cold air at the GPUs. Okay, but from watching Sandra Bullock in whatever space movie that was Jack, I'm pretty

3:05sure space has no wind or air. Correct. Which is why Google is going to use the combination of heat pipes and radiators to move the heat away from their TPUs. Last days we should point out, Google did test this for all three of those variables and they even built a space like vacuum chamber to do it here on earth. On earth, it worked, but it was still theoretical. We need to test these out and practice up in space. And in real world space, they'll also be using laser beams. Yeah, this is like the final kicker. Once these are up there, there's going to be a bunch of them. And these orbital data centers are going to need lasers to avoid colliding with each other. That's right, sharks with laser beams strapped to their heads up in earth, oh, minus the sharks. And the lasers, according to Google, will require precision like hitting a coin-sized target for miles away while both points are in motion. Like we said, the stuff of movies and today is the moment of truth. Starting today, we'll find out if a big slice of SpaceX's valuation will actually work. Data centers and space.

4:05So Jack, what's the takeaway for all our buddies looking up in the sky to answer that dumb prompt they gave to Gemini? Protests aren't the real problem. Power is. And the sun is the ultimate solution. Yet, the size of data centers are measured not by the number of chips or the amount of compute. They're actually measured by how much electricity they consume. Zux Hyperion data center, it uses the electricity equal to five Vermonts. OMG, the data centers we have in the pipeline. They need so much power right now, Jack. In Texas right now, the applications for new grid connections is electricity equal to five times the peak electricity used ever in Texas. Okay, even in Texas, extremely pro AI, pro business state, they have now put a moratorium on data centers because of the power constraints. They just don't have nearly enough power to power all those data centers in the pipeline. Now, yeah, you should remember, Jack and I visited a next generation nuclear reactor last month, and that is one way we can power the AI revolution. Either way, besides nuclear, we could use the sun.

5:08The sun, you put solar panels in the right orbit and it generates five to eight times more electricity than the same solar panel here on Earth. And according to Google, the orbit plan that they have for these data centers will have almost 24, 7, 365 sun. Although the word 365 doesn't matter up there, but it's a different measurement of time. No shade, literally. The news headlines besties, they suggest the problem for the data centers is local protests. But the even bigger problem is actually power. And today we'll find out if the solution is the sun. Yeah, it is. You look fantastic for the new Friday. If you haven't yet, drop down to his five stars. That helps. Scroll the show. If you're looking for something predictable and low friction over the long term, public markets may be a suitable option. But the moment you want different investment characteristics, it may be time to consider the private markets. See how your wealth can work smarter at creativeplaining.com slash access.

6:12Introducing the state of mental wellbeing, a podcast on mental health and substance use hosted by Mohini Venkatesh. Each week, here from leaders in the field and explore the challenges, innovations, and opportunities shaping the future of care. Subscribe now and join the movement to make mental wellbeing a reality for everyone everywhere.