“What we’ve done at SpaceX is we’ve taken a team that has been able to achieve a market share in mass to orbit that is almost 90 percent,” - Now, he said, SpaceX was applying that same team to the deployment of terrestrial compute.

As, "The question is whether Musk would devote his Falcon engineering team solely to Starship. Perhaps not."

This is not really the right conclusion IMO. It does not take the same kind or size of engineering team that Falcon took to develop or support to build cooling systems for data centers. The data center work is going to be a small side project for a small number of engineers in a small number of disciplines.

The larger point of the government not having control of its own launch capability has been an issue since an American rocket was designed with a Russian engine - Atlas V.