WEBVTT - SpaceX Goes Public, Musk Becomes First Trillionaire 0:00:02.520 --> 0:00:13.480 Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive 0:00:13.520 --> 0:00:17.319 from coast to coast with Caroline Hyde in New York 0:00:17.600 --> 0:00:19.600 and Ed Lovelow in San Francisco. 0:00:21.880 --> 0:00:23.200 This is Bloomberg Tech. 0:00:23.200 --> 0:00:24.960 I'm Ed Ludlow and I'm Caroline Hyde. 0:00:25.000 --> 0:00:29.040 And today is the day SpaceX's big debut in the 0:00:29.120 --> 0:00:32.000 public markets. The company is set to begin trading any 0:00:32.200 --> 0:00:32.880 moment now. 0:00:32.960 --> 0:00:35.720 And break down what that means for investors and for 0:00:35.800 --> 0:00:39.680 the space economy and for the IPO pipeline. Elon Musk, 0:00:39.760 --> 0:00:42.919 speaking at Star based Texas just a couple of hours ago. 0:00:43.560 --> 0:00:48.720 I give SpaceX less than a ten percent chance of 0:00:49.520 --> 0:00:50.480 succeeding at all. 0:00:51.040 --> 0:00:53.440 To be clear, In fact, I told people this. 0:00:53.680 --> 0:00:55.480 Look, we're probably gonna fail, but you know, we should 0:00:55.480 --> 0:00:59.720 give it a try, because if we don't, if there's 0:00:59.760 --> 0:01:02.640 not an new company that erospace, we will never be 0:01:02.760 --> 0:01:04.480 a truly space varing civilization. 0:01:06.120 --> 0:01:08.720 And we check in on these markets as the latest 0:01:08.760 --> 0:01:11.400 indicated price of SpaceX shares is one hundred and sixty 0:01:11.440 --> 0:01:13.920 two dollars each, the IPO price one hundred and thirty 0:01:13.920 --> 0:01:14.280 four dollars. 0:01:14.319 --> 0:01:16.440 We look at the Nasdaq one hundred ed are we're 0:01:16.520 --> 0:01:17.880 up rockit rightti percent. 0:01:18.120 --> 0:01:20.679 Yeah, and look, this is about geopolitics, this is about 0:01:20.680 --> 0:01:22.720 hopes on some sort of deal and are you with 0:01:22.760 --> 0:01:25.080 Iran in the United States? But thus far we are 0:01:25.080 --> 0:01:27.360 completely focused on the impact of this IPO. 0:01:27.600 --> 0:01:27.839 Yeah. 0:01:27.840 --> 0:01:29.959 Look, there is a lot of evidence that whatever asset 0:01:29.959 --> 0:01:32.200 class you look at, people are trying to be positioned 0:01:32.520 --> 0:01:34.640 to play this IPO in the moment when we start 0:01:34.640 --> 0:01:37.959 trading imminently, starting trading indicated right now to open at 0:01:37.959 --> 0:01:39.440 one hundred and sixty two dollars each. 0:01:39.520 --> 0:01:42.080 We price the IPO one hundred and thirty five. 0:01:42.520 --> 0:01:45.560 But loads of disappointed people on the institutional side and 0:01:45.600 --> 0:01:46.200 the retail side. 0:01:46.240 --> 0:01:47.600 Yeah, who didn't get allocations. 0:01:47.800 --> 0:01:49.360 But if you've got an allocation, you're looking at maybe 0:01:49.360 --> 0:01:51.400 a twenty percent pop if it opens at that level. 0:01:51.440 --> 0:01:54.400 Your hira a land is down at the Nasdaq for us. 0:01:54.880 --> 0:01:56.200 What are you hearing? What are you seeing? 0:01:57.720 --> 0:02:01.120 Well, the fanfare from the opening well is over, but 0:02:01.240 --> 0:02:04.640 we still have legions of Elon Musk fans outside and 0:02:04.680 --> 0:02:07.480 some movement behind me on the Nasdaq floor. But as 0:02:07.480 --> 0:02:10.600 you guys were saying, we've gotten a series of indications 0:02:10.680 --> 0:02:13.240 throughout the morning and they've continued. 0:02:13.000 --> 0:02:15.040 To edge lower. As traders work through. 0:02:14.880 --> 0:02:19.120 The price discovery process. The latest indication is one hundred 0:02:19.120 --> 0:02:22.000 and sixty two dollars a share, down from earlier levels 0:02:22.000 --> 0:02:25.520 that were around one seventy five. Even so, that is 0:02:25.560 --> 0:02:28.480 above the one hundred and thirty five IPO price and 0:02:28.600 --> 0:02:32.760 does imply a valuation of some two point one trillion dollars, 0:02:32.800 --> 0:02:36.679 meaning SpaceX would still rank among the most valuable companies 0:02:36.720 --> 0:02:40.560 in the world from its very first trade. 0:02:40.160 --> 0:02:43.280 One sixty two a share twenty percent from the IPO price, exactly, 0:02:43.360 --> 0:02:46.359 implying a market value roughly two point one trillion dollars. 0:02:46.400 --> 0:02:48.640 Bloombok to your heart and end back throughout the hour 0:02:48.919 --> 0:02:52.520 at the Nasdaq. Let's talk about SpaceX. Christian Garrett one 0:02:52.520 --> 0:02:55.320 three seven venches, managing partner. SpaceX was one of the 0:02:55.360 --> 0:02:59.440 first investments that one three seven Benches made net net. 0:02:59.480 --> 0:03:02.480 In the end, the state worth billions and billions of dollars. 0:03:02.840 --> 0:03:05.640 And you've been with the company as its story changed, 0:03:06.320 --> 0:03:10.400 started with reusability and rockets. It's a future of AI 0:03:10.520 --> 0:03:13.480 and the enterprise. I just ask you, Christian, to reflect 0:03:13.520 --> 0:03:16.360 on what this IPO represents to you in the firm. 0:03:16.960 --> 0:03:20.720 Well, you know, first off, we're extremely excited for the IPO. 0:03:21.200 --> 0:03:24.600 It's a great milestone, but you know, as long term investors, 0:03:24.639 --> 0:03:26.520 this is just the beginning of the journey. 0:03:26.280 --> 0:03:29.919 For the Company'd say that, of course, Look. 0:03:29.720 --> 0:03:31.600 I think you know, the company, like you mentioned, has 0:03:31.639 --> 0:03:35.240 gone through this evolution, and many things have grown in 0:03:35.320 --> 0:03:37.280 the vision or scope, but many things have stayed the 0:03:37.320 --> 0:03:39.840 exact same. The company has always had the mission to 0:03:40.040 --> 0:03:45.600 make humanity multiplanetary, to expand consciousness across the universe, and 0:03:45.680 --> 0:03:48.480 they knew that they had to find incredible business models 0:03:48.480 --> 0:03:50.760 where they had advantages in order to fund that vision. 0:03:51.240 --> 0:03:55.240 They started by really bringing launch back to America, which 0:03:55.240 --> 0:03:57.040 in and of itself is an incredible thing to be 0:03:57.080 --> 0:03:59.760 a part of. They were the first company to build 0:03:59.800 --> 0:04:03.160 a reusable rocket, a partially re usable rocket, which dramatically 0:04:03.240 --> 0:04:06.440 dropped costs for launch. That advantage gave them the infrastructure 0:04:06.440 --> 0:04:09.240 to build Starlink, which is the world's largest constellation, and 0:04:09.320 --> 0:04:11.400 from there you're seeing that they have the advantage to 0:04:11.400 --> 0:04:17.080 build infrastructure terrestially and hopefully in orbit for data centers. A. L. 0:04:17.160 --> 0:04:20.279 Musk We started the show saying, just a ten percent 0:04:20.360 --> 0:04:23.360 chance that was survival. Was that what you thought when 0:04:23.360 --> 0:04:26.240 you first were getting under the skin of this company 0:04:26.279 --> 0:04:28.760 at one, three seven, Did you have bigger bets from 0:04:28.800 --> 0:04:30.200 that in terms of thinking it'd be more than ten 0:04:30.200 --> 0:04:33.440 percent probability? And where do you see your holdings going 0:04:33.560 --> 0:04:34.240 longer term? 0:04:34.360 --> 0:04:36.719 I think, guys, investors, you always can have some revisionist 0:04:36.720 --> 0:04:39.159 history sometimes and so I'm sure we were always extremely 0:04:39.160 --> 0:04:41.040 confident in the company. But look, I mean, I think 0:04:41.040 --> 0:04:43.359 there's just been multiple points of inflection for the business, 0:04:43.400 --> 0:04:46.400 and so I think there's high confidence that NASA really 0:04:46.440 --> 0:04:48.280 we needed launch capacity to come back to the state. 0:04:48.360 --> 0:04:50.480 So it was an understandable bet back in the day 0:04:50.480 --> 0:04:53.480 when my two partners were at Founders Fund in one 0:04:53.480 --> 0:04:55.640 of the early investment in the company. When we continue 0:04:55.640 --> 0:04:58.159 to invest when what the Seven Ventures was formed two ten, 0:04:58.160 --> 0:05:01.560 twenty eleven onward and inve in the company every single 0:05:01.640 --> 0:05:04.400 year for sixteen years, I think the bet still remain 0:05:04.480 --> 0:05:06.760 the same, which was fundamentally. 0:05:06.320 --> 0:05:07.160 After they nail launch. 0:05:07.200 --> 0:05:09.559 After the Nail reusability, you then were making a future 0:05:09.560 --> 0:05:12.159 bet on Starlink, which was unclear, but the technology was 0:05:12.200 --> 0:05:14.599 proven and in just a couple of years that business 0:05:14.600 --> 0:05:17.040 went from zero dollars in revenue to over eleven billion 0:05:17.080 --> 0:05:19.520 dollars in revenue and the largest constellation. I think you're 0:05:19.520 --> 0:05:22.600 seeing a similar inflection point now where you're betting on starship, 0:05:22.600 --> 0:05:25.960 you're betting on data centers in space, and you have 0:05:26.040 --> 0:05:28.880 early data and indications that many investors, including ourselves, are 0:05:28.880 --> 0:05:31.200 extremely confident in, and I think other people will see 0:05:31.240 --> 0:05:34.200 that same execution. That's basics is historically they're going to 0:05:34.200 --> 0:05:35.120 continue to do in the future. 0:05:35.680 --> 0:05:38.280 They're doing this IPO. They need capital. 0:05:38.400 --> 0:05:40.560 That's why you know he could in the end he 0:05:40.640 --> 0:05:42.920 got there when musc was speaking to Jamie Diamond, Well, 0:05:42.960 --> 0:05:43.920 we need capital. 0:05:45.560 --> 0:05:47.039 How do you expect them to deploy? 0:05:47.160 --> 0:05:50.039 That is a completely separate question, right The thing that's 0:05:50.040 --> 0:05:53.680 missing in their perspectus is where the Capex plans. What 0:05:53.720 --> 0:05:55.880 do you see happening in the first instance, Christian, I. 0:05:55.880 --> 0:05:59.600 Think the company has been pretty consistent publicly and talking 0:05:59.600 --> 0:06:01.800 about of their plans. You know, Brett Johnson just did 0:06:01.800 --> 0:06:03.599 a great interview with the friend of ours of the 0:06:03.640 --> 0:06:06.360 firm having Makavin Baker, which was great and they talked 0:06:06.360 --> 0:06:09.200 a lot about one the infrastructures build out data centers, 0:06:09.240 --> 0:06:11.960 I think terrestrially, and you see with XAI, you know 0:06:12.000 --> 0:06:14.240 a lot of the Capex investments for that young company 0:06:14.240 --> 0:06:16.600 over the last couple of years that investors have been 0:06:16.600 --> 0:06:19.080 trying to understand. And then obviously data centers in space 0:06:19.160 --> 0:06:21.240 is going to be a huge CAPEX investment, their continued 0:06:21.240 --> 0:06:24.160 investment starship development. But for the most part, I would 0:06:24.160 --> 0:06:26.520 say it's going to be heavily focused on data centers 0:06:26.520 --> 0:06:28.440 within the XAI business because. 0:06:28.200 --> 0:06:31.680 That almost was what shops everyone right head in the 0:06:31.880 --> 0:06:35.360 S one the total addressable market more than twenty eight 0:06:35.360 --> 0:06:37.960 trillion dollars was like enterprise application. 0:06:38.040 --> 0:06:39.960 It was AI was really where a lot of this 0:06:40.080 --> 0:06:40.599 is coming from. 0:06:40.880 --> 0:06:44.800 Yeah, absolutely, I think the company really sees that business 0:06:44.800 --> 0:06:47.400 line being a massive opportunity and quite frankly, if you 0:06:47.440 --> 0:06:50.480 look at their advantages going after that, it's fundamentally driven 0:06:50.520 --> 0:06:53.000 by cost structure. Right, they have infrastruts, they have a platform, 0:06:53.240 --> 0:06:55.560 they can deliver capabilities at a lower costs and get 0:06:55.560 --> 0:06:58.080 to scale that other people can't. And I think one 0:06:58.080 --> 0:06:59.919 of the great touch points for that is if you 0:07:00.040 --> 0:07:02.680 look at their Classes one and two data centers and 0:07:02.720 --> 0:07:04.400 you look at the business that they just launch on 0:07:04.400 --> 0:07:07.400 the compute side, they're giving you signal that terrestrially this 0:07:07.400 --> 0:07:09.640 can be a massive business. So in orbit, it will 0:07:09.680 --> 0:07:11.720 be a much much larger one. They're on a twenty 0:07:11.800 --> 0:07:14.960 six billion dollar run rate for their interrestrial compute business 0:07:15.880 --> 0:07:18.560 and those are just two deals within a month. Imagine 0:07:18.560 --> 0:07:20.120 where this business is going to be in ten years. 0:07:20.240 --> 0:07:22.160 I think there are questions from a lot of investors 0:07:22.160 --> 0:07:24.200 will hold on, why aren't you using that capacity for 0:07:24.240 --> 0:07:26.760 your own models, either training or on inference, and we 0:07:26.800 --> 0:07:28.920 will get to that. Christian Garrett, partner at one three 0:07:28.920 --> 0:07:31.880 to seven stays with us. One quick note, look at 0:07:31.880 --> 0:07:35.080 shares of rocket Lab actually down now about six percent. 0:07:35.120 --> 0:07:37.680 That was selling everywhere right when we started to get 0:07:37.720 --> 0:07:40.120 those indications of SpaceX. However, it was up in the 0:07:40.120 --> 0:07:42.760 pre market. Nasdak announced it will be one of the 0:07:42.840 --> 0:07:46.040 five companies joining the Nasdaq one hundred index on June 0:07:46.080 --> 0:07:49.040 twenty second, And obviously like highly analogous with SpaceX, but 0:07:49.120 --> 0:07:52.600 the distant, small number two launch provider in the United 0:07:52.640 --> 0:07:54.160 States right now, and now. 0:07:54.000 --> 0:07:56.480 We go back to the number one because coming up 0:07:56.560 --> 0:08:00.440 SpaceX is launching onto the public markets. But it's about 0:08:00.520 --> 0:08:02.560 far more than rockets. So we're just talking. We're going 0:08:02.600 --> 0:08:04.720 to delve ever more into this AI growth story. 0:08:05.360 --> 0:08:17.360 This is bloombg Tech welcome back. 0:08:17.920 --> 0:08:21.600 All in on this record SpaceX IPO, which we understand 0:08:21.640 --> 0:08:23.920 the shares are indicated to open at one hundred and 0:08:23.920 --> 0:08:27.240 sixty dollars per share, that is nineteen percent above the 0:08:27.280 --> 0:08:29.960 IPO price. Many Singh is our global head of tech 0:08:29.960 --> 0:08:32.880 research bloomg Intelligence, and he joins us along with Christian 0:08:32.920 --> 0:08:35.400 Garrett from one three seven Ventures, who has been investing 0:08:35.800 --> 0:08:36.559 round after. 0:08:36.480 --> 0:08:38.360 Round, and SpaceX from the venture side. 0:08:38.440 --> 0:08:41.680 Mandy, you're out with new research stating that xai could 0:08:41.720 --> 0:08:44.200 soon dominate SpaceX's sales by the end of the year. 0:08:44.720 --> 0:08:48.520 This is an AI company. Walk us through. 0:08:48.640 --> 0:08:51.600 You're thinking, yeah, I think the two recent deals and 0:08:51.679 --> 0:08:55.280 Tropic and Google. I mean they add almost twenty six 0:08:55.320 --> 0:08:59.080 billion dollars in recurring revenue, and we know cloud is 0:08:59.120 --> 0:09:02.920 a very high, stable margin business and so this is 0:09:02.960 --> 0:09:05.760 no different. You know, they have become a neo cloud 0:09:05.920 --> 0:09:10.160 AI infrastructure player overnight, and no one really saw this 0:09:10.320 --> 0:09:14.199 coming because the focus was clearly on the space launch 0:09:14.280 --> 0:09:18.200 business and the starlink business. But I think the recurring 0:09:18.240 --> 0:09:21.000 revenue gives them a lot of stability in terms of 0:09:21.080 --> 0:09:24.319 driving that top line growth, and they're showing a lot 0:09:24.360 --> 0:09:27.680 of capex sufficiency. That's the other aspect about what they've 0:09:27.720 --> 0:09:28.080 done here. 0:09:28.120 --> 0:09:32.240 So team, there's a discrepancy here, right. So Christian and 0:09:32.280 --> 0:09:34.760 the team at one three seven started investing when this 0:09:34.880 --> 0:09:38.319 was about reasonability and rockets. The pitch for this IPO 0:09:38.800 --> 0:09:41.520 is a future where the entire TAM basically twenty six 0:09:41.600 --> 0:09:45.320 point five trillion is enterprise AI. Your thesis is based 0:09:45.320 --> 0:09:48.160 on them being a neocloud running out capacity. When does 0:09:48.240 --> 0:09:51.600 GROC start making money? When do the models become valuable? 0:09:51.720 --> 0:09:54.880 So that's where I think if they close the Cursor 0:09:54.960 --> 0:09:58.720 deal within the first thirty days, I mean that's huge 0:09:58.760 --> 0:10:02.840 in terms of improving rock model and coding agent is 0:10:02.960 --> 0:10:06.679 the real success story when you think about llms. That's 0:10:06.720 --> 0:10:10.800 where every frontier lab is making money. Guess what Cursor 0:10:11.120 --> 0:10:14.480 is the top asset outside of the frontier labs when 0:10:14.520 --> 0:10:17.840 it comes to coding agents. So a huge acquisition. I 0:10:17.880 --> 0:10:21.120 think they will close it and that will really beef 0:10:21.200 --> 0:10:23.720 up you know the grock side of things where it's 0:10:23.760 --> 0:10:27.360 mostly consumer subscriptions and we know that's not the high 0:10:27.360 --> 0:10:29.560 growth drivers. It has to be Cursor. 0:10:29.640 --> 0:10:32.600 I mean, Christian go up through the thinking for us 0:10:32.640 --> 0:10:36.240 because initially you need and reaction might be why. 0:10:36.040 --> 0:10:38.439 Have they got spare capacity from that. 0:10:38.440 --> 0:10:40.000 That was kind of my point. 0:10:40.520 --> 0:10:44.120 Compute, if it's not being put and deployed into groquai, 0:10:44.559 --> 0:10:46.240 will they be able to have more and more to 0:10:46.280 --> 0:10:48.600 sell to Athropic, to Google and others, or they get's 0:10:48.640 --> 0:10:49.520 not using it themselves. 0:10:49.720 --> 0:10:51.679 One of the fascinating things about the company is actually 0:10:51.720 --> 0:10:54.040 the speed that they've gotten this capacity of, and that 0:10:54.240 --> 0:10:57.280 changes the underwriting here. If you look at Colossus one 0:10:57.280 --> 0:10:59.640 and two, some of the fastest data centers built right 0:10:59.679 --> 0:11:02.000 within the ecosystem for these kind of neoclouds focused on 0:11:02.040 --> 0:11:05.600 AI compute. Colossus three obviously a project that's coming online, 0:11:05.640 --> 0:11:06.960 and so I do think that what you're going to 0:11:06.960 --> 0:11:09.079 see is that they build these data centers faster, cheaper, 0:11:09.120 --> 0:11:11.880 and that gives them sphare capacity on the older ones 0:11:12.040 --> 0:11:13.960 to be able to offer it for the hyperscalar business. 0:11:13.960 --> 0:11:17.319 And then companies like Cursor, which obviously the acquisition probably 0:11:17.360 --> 0:11:21.160 closes after the listing, and then the Grock models will 0:11:21.200 --> 0:11:22.599 give them their own kind of first part of the 0:11:22.640 --> 0:11:24.840 enterprise AI offerings that they can use that compute for. 0:11:25.200 --> 0:11:27.000 And I think a lot has publicly said that they 0:11:27.000 --> 0:11:29.280 want to work with their partners, you know, if demand 0:11:29.400 --> 0:11:31.959 drastically increases, they may take some of that capacity back 0:11:32.000 --> 0:11:34.800 the older capacity. If you demand continues a scale, but 0:11:34.840 --> 0:11:37.240 they build capacity at a similar rate, then there's more 0:11:37.280 --> 0:11:39.360 than enough to go around for everyone. I think once again, 0:11:39.360 --> 0:11:41.800 it's just the company realizing what are their inherent advantages 0:11:41.840 --> 0:11:44.800 and it's really building infrastructure, and so I think that's 0:11:44.800 --> 0:11:46.320 fundamentally the that you want to make is can they 0:11:46.320 --> 0:11:49.000 build infrastructure, can they vertically integrate. 0:11:48.600 --> 0:11:49.280 And cut costs? 0:11:49.280 --> 0:11:52.120 And does that give them some advantage on these huge markets? 0:11:52.240 --> 0:11:54.960 If you look inside the tin can and where the 0:11:55.000 --> 0:11:57.960 tin cans are a lot of differences between Colossus one 0:11:58.480 --> 0:12:00.800 and Colossus two and three. Bring it a bit more 0:12:00.800 --> 0:12:05.040 about that later, what happens next for the company. And 0:12:05.280 --> 0:12:07.520 you know, if you're high up the cap table as 0:12:07.520 --> 0:12:11.360 a VC that's been on the long journey, there's a 0:12:11.400 --> 0:12:15.960 lot of daylight between present day and the future. It's 0:12:16.040 --> 0:12:19.800 still all predicated on Starship working and being reusable. 0:12:20.160 --> 0:12:22.160 How much do you think about. 0:12:21.880 --> 0:12:25.400 That, Yeah, Starship's a huge piece of the equation. It's 0:12:25.440 --> 0:12:28.800 what unlocks you know, the Version three satellites for Starlink. 0:12:29.200 --> 0:12:32.320 It's what helps obviously unlock and be able to launch 0:12:32.440 --> 0:12:34.720 data centers in space. It's what gets to the Moon, 0:12:34.800 --> 0:12:36.640 is what gets the Mars. It's a very important piece 0:12:36.640 --> 0:12:39.319 to the platform. The businesses you see if you look 0:12:39.360 --> 0:12:42.640 at Starlink has just been built on the Falcon nine platform, right, 0:12:42.679 --> 0:12:44.679 if you look at their AI compute business. 0:12:44.400 --> 0:12:45.120 That's terrestrial. 0:12:45.200 --> 0:12:47.280 So there's a lot of scale for the business on 0:12:47.400 --> 0:12:49.839 just where they are today with the current sets of 0:12:49.920 --> 0:12:52.720 launch capabilities. But Starships is a huge a huge driver 0:12:52.800 --> 0:12:54.439 for that, and quite frankly, I think it's one of 0:12:54.480 --> 0:12:56.400 these things that is as an American and I think 0:12:56.400 --> 0:12:58.000 for everyone around the world, that you want to root 0:12:58.040 --> 0:13:02.079 for because SpaceX is the launch provider for the entire world. Right, 0:13:02.120 --> 0:13:05.000 most of the world has works with them, and they 0:13:05.280 --> 0:13:07.080 are all on the same boat of really wanting this 0:13:07.120 --> 0:13:10.160 company to succeed because of what they've unlocked for I 0:13:10.160 --> 0:13:12.280 think the country here in the States and on our 0:13:12.320 --> 0:13:15.319 allies as well. By bringing launch capacity back, Starship's going 0:13:15.320 --> 0:13:16.640 to take that to a next level where I think 0:13:16.679 --> 0:13:19.160 it's going to unlock not just new opportunities in new markets, 0:13:19.160 --> 0:13:21.600 but also help more and more businesses be formed in space. 0:13:21.760 --> 0:13:23.719 You know, the Falcon nine platform led to companies like 0:13:23.800 --> 0:13:27.080 Varda being formed. What happens when Starship, you know, reaches 0:13:27.120 --> 0:13:29.400 the kind of scale and capacity that SpaceX is targeting. 0:13:29.559 --> 0:13:31.040 What kind of businesses could be launched? 0:13:31.040 --> 0:13:31.199 Then? 0:13:31.480 --> 0:13:31.640 Right? 0:13:31.640 --> 0:13:32.360 We have no idea? 0:13:32.520 --> 0:13:34.520 Right, maybe instead of venture backed businesses, it turns out 0:13:34.520 --> 0:13:36.679 you can have small businesses and small business owners be 0:13:36.720 --> 0:13:37.959 able to build businesses in space. 0:13:38.000 --> 0:13:39.679 This is a totally new world that we're entering in. 0:13:39.720 --> 0:13:40.760 This is an ecosystem. 0:13:40.880 --> 0:13:44.000 This is maybe fueled and more angel investing, more venture 0:13:44.000 --> 0:13:45.720 capital investing, but more founders as well. 0:13:45.800 --> 0:13:47.520 But Mande the risks here? 0:13:47.640 --> 0:13:49.839 What should an investor keep in mind as we await 0:13:49.880 --> 0:13:50.800 the first trade? 0:13:51.000 --> 0:13:54.400 I mean, look, the valuation is already likely to exceed 0:13:54.440 --> 0:13:58.000 two trillion. So when I see that kind of market cap, 0:13:58.200 --> 0:14:01.280 even with the triple digit growth that I am baking 0:14:01.320 --> 0:14:04.959 in for the XAI side of things, I can't see 0:14:05.000 --> 0:14:08.320 you know how that you know, one point five trillion 0:14:08.600 --> 0:14:14.520 combined SpaceX and starlink valuation can be justified if my 0:14:14.679 --> 0:14:17.000 numbers for XAI are closed through you know, three to 0:14:17.000 --> 0:14:20.200 four hundred billion dollars with the growth rates. So I 0:14:20.400 --> 0:14:23.720 just find the valuation to be quite rich at this level. 0:14:24.160 --> 0:14:25.800 A lot of people I know that are already on 0:14:25.840 --> 0:14:27.960 the cap tables say they're thinking about the evaluation in 0:14:28.000 --> 0:14:31.040 twenty thirty or twenty fifty, and they work backwards. Mandeep 0:14:31.080 --> 0:14:34.960 Singh Bloomberg Intelligence leads our research of technology. Christian Garrett 0:14:34.960 --> 0:14:37.600 Investment Partner at one three seven, one of the early 0:14:38.040 --> 0:14:41.400 and durable investors on the SpaceX cap table. 0:14:41.400 --> 0:14:41.840 Coming up. 0:14:42.160 --> 0:14:45.160 SpaceX's IPO marks one of the most significant wind pools 0:14:45.400 --> 0:14:47.760 in bention capital history. We're going to discuss who the 0:14:47.760 --> 0:14:50.120 big winners and the big names on that cap table are. 0:14:50.200 --> 0:14:52.760 Character waiting with baited breath. But as we go to break, 0:14:52.800 --> 0:14:53.360 here's actually a. 0:14:53.360 --> 0:14:55.120 Live look at what's really happening right here, right now. 0:14:55.120 --> 0:14:59.480 A panel Chevron CEO Mike Worsty there see, speaking with. 0:14:59.440 --> 0:15:02.520 Amory Hold and Vern Houston follow along my lifego. 0:15:03.560 --> 0:15:04.200 The supply was. 0:15:04.160 --> 0:15:06.200 Shut off and so that's where you saw differentials getting 0:15:06.280 --> 0:15:06.880 very wide. 0:15:08.160 --> 0:15:10.840 But subsequently you know you've got supplied. 0:15:14.600 --> 0:15:17.480 Some of the venture firms that are back SpaceX. 0:15:17.000 --> 0:15:19.440 Are set to earn tens of billions of dollars in 0:15:19.480 --> 0:15:23.720 returns today. They include founders Fund and recent Horowitze Koa Capital. 0:15:23.880 --> 0:15:27.480 Brinberg's Ventures reporter Rebecca Torrance joins us now. I mean 0:15:27.480 --> 0:15:29.040 it's paper money, but it's big money. 0:15:29.960 --> 0:15:30.720 It's huge money. 0:15:30.760 --> 0:15:32.920 And I think one of the most interesting things about 0:15:32.920 --> 0:15:37.160 this is that not just SpaceX's early backers are going 0:15:37.200 --> 0:15:39.200 to make a huge wind fall off of this, but 0:15:39.240 --> 0:15:39.680 even some of. 0:15:39.640 --> 0:15:40.680 The late ones as well. 0:15:40.760 --> 0:15:43.800 So so Koya and Reeson Horowitz both came in fairly 0:15:43.920 --> 0:15:46.760 late relative to the entire life cycle of this company, 0:15:47.600 --> 0:15:51.000 you know, the multi decade history, and yet stand to 0:15:51.040 --> 0:15:53.280 make tens of billions of dollars off of this IPO. 0:15:54.320 --> 0:15:55.720 Of course, the same is true for some of its 0:15:55.760 --> 0:15:58.280 early backers as well, and long time eland Musk allies, 0:15:58.720 --> 0:16:01.000 including Valor equity partners and founders fund. 0:16:01.080 --> 0:16:03.160 Yeah, the founder's fund number, like you double check it 0:16:03.240 --> 0:16:05.120 fifty billion plus because you know, I was on stage 0:16:05.120 --> 0:16:07.320 with Tray Stevens the other day, one of the twelve 0:16:07.400 --> 0:16:09.520 investing partners at the firm. I think they did six 0:16:09.560 --> 0:16:12.640 hundred million over a many period of time. Like just 0:16:12.640 --> 0:16:16.320 talk about those two bigger beasts, right, So. 0:16:16.520 --> 0:16:19.000 I mean, I think it is it's really fascinating to 0:16:19.040 --> 0:16:23.200 see how Musk's early allies continued to back him. Of course, 0:16:23.320 --> 0:16:27.280 you know, across the lifetime of this company. First investments 0:16:27.280 --> 0:16:29.520 around two thousand and eight, two thousand and nine, and 0:16:29.560 --> 0:16:32.000 of course has been many years since then. Some of 0:16:32.000 --> 0:16:34.120 these were folks back from the PayPal days, for example 0:16:34.120 --> 0:16:39.840 Peter Thiel and you know early investors that believes in 0:16:39.960 --> 0:16:42.800 musk and it's base x before the space economy really 0:16:42.840 --> 0:16:43.280 took off. 0:16:43.360 --> 0:16:45.440 For Indreacing, this would be the biggest return in the 0:16:45.440 --> 0:16:48.480 firm's history doing both Rebecca Torrent's top job, Thank you 0:16:48.600 --> 0:16:51.960 very much. What does this IPO mean for other AI 0:16:52.040 --> 0:16:55.040 IPOs in the pipeline? Goldman SAX President and COO John 0:16:55.080 --> 0:17:00.000 Waldron thinks it's a step closer to a wave of listings. 0:17:00.040 --> 0:17:02.760 Seventy five billion dollar ipo, the largest in history. I 0:17:02.800 --> 0:17:06.680 think it presages the beginning of a pretty sizable wave 0:17:06.720 --> 0:17:09.119 of IPOs, which we're excited about. I also think it 0:17:09.160 --> 0:17:12.160 shows you that the capital markets, led by the US 0:17:12.200 --> 0:17:14.800 capital markets, but the global capital markets, are demonstrating a 0:17:14.840 --> 0:17:18.320 willingness to finance this AI infrastructure build and this building space, 0:17:18.400 --> 0:17:19.320 which is quite exciting. 0:17:20.800 --> 0:17:24.720 Pegas is founder in CEO and Isthuisman agrees, and it's 0:17:24.800 --> 0:17:30.240 invested in all three companies, SpaceX, Open AI and Anthropic. 0:17:31.480 --> 0:17:35.959 How difficult is that to pick the winner. It is 0:17:36.000 --> 0:17:36.920 not that difficult. 0:17:36.920 --> 0:17:41.879 Actually, I started investing in Spaceics first, and you know, 0:17:42.040 --> 0:17:45.720 I had a fantastic time, and you know, we continued 0:17:46.119 --> 0:17:49.040 seeing the growth of the Spacics. It was a space 0:17:49.160 --> 0:17:53.560 exploration company, and then started doing good in Sterling and 0:17:53.800 --> 0:17:58.240 Sterlink started expanding, and then came in open Ai and 0:17:58.400 --> 0:18:01.880 Nthropy and they were all you know, connected to each 0:18:01.920 --> 0:18:05.640 other in some sense. When Spacics started blooming, I think, 0:18:05.680 --> 0:18:10.000 you know, we were feeling confident enough. When OpenAI came in, 0:18:10.280 --> 0:18:14.200 we invested in OpenAI and then we followed it anthrofit. 0:18:14.400 --> 0:18:16.440 So it happened one after another. 0:18:16.720 --> 0:18:18.840 And there's room for all three. 0:18:19.200 --> 0:18:23.000 Look, I've spoken to Thrive when they raised their last round, 0:18:23.160 --> 0:18:25.800 and they are ride or dies, just open Ai. They 0:18:25.840 --> 0:18:29.280 don't believe in spreading your bets like this. But is 0:18:29.320 --> 0:18:31.000 it okay that they're all kind of in on the 0:18:31.000 --> 0:18:31.840 same business model? 0:18:31.880 --> 0:18:37.040 Here they are, But you know, AI is such a 0:18:37.040 --> 0:18:40.359 big market. I mean, there's so much opportunity. When we 0:18:40.400 --> 0:18:43.320 looked at OpenAI and they were doing good, at the 0:18:43.359 --> 0:18:46.440 same time, we found that, you know, Anthropy was focusing 0:18:46.520 --> 0:18:50.760 on more enterprise level, you know AI, so they're more 0:18:50.760 --> 0:18:54.040 focusing on the business to business side. They were more 0:18:54.040 --> 0:18:57.320