Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: This is Bloomberg Tech coming up. SpaceX continues to rocket,
Speaker 2: eclipsing Amazon in value this as it lands it's sixty
Speaker 2: billion dollar takeover of Cursor, plus Anthropic meets with US
Speaker 2: officials to resolve a national security dispute with the Trump
Speaker 2: administration over its most advanced AI models and Sequoia partner
Speaker 2: SpaceX investor and AI thinker Sean maguire, on set in
Speaker 2: San Francisco, is to go deep on the Cursor deal
Speaker 2: and Orbital Data centers. Tuesday, June sixteenth, twenty twenty six,
Speaker 2: SpaceX its third day of trading in the public markets,
Speaker 2: and it continues to soar. It's all about valuation in
Speaker 2: the here and now. We are currently on track for
Speaker 2: SpaceX to eclipse Amazon in market value. It's been a
Speaker 2: volatile session. One point, the stock up seventeen percent and
Speaker 2: in just a brief moment, eclipse Microsoft in terms of
Speaker 2: its market value in the moment. Indeed, but here's the thing.
Speaker 2: When you think about SpaceX's relative value too Microsoft or Amazon,
Speaker 2: there's a catalyst in the news cycle, and that is
Speaker 2: it will move forward with a sixty billion dollar deal
Speaker 2: for Cursor in the AI coding space. Let's get the
Speaker 2: details on that deal with Blimbox and Attasha Mascarinus, who
Speaker 2: covers AI and venture and here with us in SF
Speaker 2: Let's start with the details the structure. There's also the
Speaker 2: idea that in April they had the right to acquire
Speaker 2: a Cursor just days after the going public they.
Speaker 3: Are exactly, I mean, in April weys our first of
Speaker 3: its kind announcement an agreement to have the option to acquire.
Speaker 3: Now we have the news that they are moving ahead
Speaker 3: with the agreement and they will plan to acquire Cursor.
Speaker 3: It's going to be for that price tag that we expected,
Speaker 3: a sixty billion dollar implied valuation, and the Cursor investors
Speaker 3: will be getting stock as a.
Speaker 4: Result of it, SpaceX stock.
Speaker 3: Sorry, SpaceX stock as a result of it.
Speaker 4: Exactly.
Speaker 2: So there's a big question here about like, well, who
Speaker 2: wins on the Cursor side. Cursor has been active in
Speaker 2: raising money in recent years. They had a lot of momentum.
Speaker 2: You have a pretty good understanding of who's on the
Speaker 2: cat table there.
Speaker 3: Yeah, I mean, this has been one of the most
Speaker 3: explosive AI companies outside of open an Anthropic. If you
Speaker 3: ask me this is the number one other company I've
Speaker 3: been focused on for the past year. We think about
Speaker 3: the biggest winners from this deal when the deal does close,
Speaker 3: which is expecting in a few months, it's actually some
Speaker 3: of the same investors for SpaceX. Unsurprisingly, two of the
Speaker 3: biggest investors in Cursor are Thrive Capital and Injuries and
Speaker 3: Horowitz and you know last week we heard them celebrate
Speaker 3: as well when it came to the SpaceX IPO. And
Speaker 3: so Thrive is expected to have a stake worth north
Speaker 3: of ten billion according to sources. When we think about
Speaker 3: the SpaceX and Cursor combination, and Andresa, you know, heading
Speaker 3: into this, had about six billion worth of stake in Cursor,
Speaker 3: and so another kind.
Speaker 2: Of they already reported that, you know, for Indreeson on
Speaker 2: the SPACEXIPO, this would be the biggest payoff in the
Speaker 2: in the firm's history. Let's go to the AI bit
Speaker 2: of it. I think Elon Musk has been pretty honest
Speaker 2: that in the coding space XAI had been behind your anthropics,
Speaker 2: your open AI is even what is SpaceX doing with Cursor?
Speaker 2: What's the plan here?
Speaker 3: Yeah, I mean people forget that SpaceX actually merging with
Speaker 3: XAI is still a recent move. Yeah, I mean the
Speaker 3: ink is still you know, drying on that one. But yeah,
Speaker 3: I mean, listen, it's the same goal. Elon wants to
Speaker 3: strengthen their AI talent Cursor. I mean, when I was
Speaker 3: first writing about Cursor, they were bringing on people to
Speaker 3: their office for two weeks before they made an acquisition,
Speaker 3: before they made a hiring offer, and so they really
Speaker 3: spent a huge amount of time in recruiting the best
Speaker 3: AI talent in samp and Cisco, building a very unique
Speaker 3: kind of culture. And now Elon Musk is getting you know,
Speaker 3: that highly vetted talent as he looks to make SpaceX
Speaker 3: ANAI company, and so there's a lot of interest in
Speaker 3: the talent. We'll see if all people do come on
Speaker 3: as a result of the acquisition, but it's hundreds of
Speaker 3: employees joining the spacexta.
Speaker 2: And even before spacexxai closed there was high turnover at XAI.
Speaker 2: They had people departing from the founding group, et cetera.
Speaker 2: Bloe miss and attached Miss Garinus on the Cursor deal.
Speaker 2: Let's get more in SpaceX's surging valuation in the public markets.
Speaker 2: Bloomberg Equities reported common Rhinikey joins us with the latest,
Speaker 2: so right now on track to eclipse Amazon. You and
Speaker 2: I have been talking all morning about price to sales ratios,
Speaker 2: and then there's the volatility in the session itself. Explain
Speaker 2: it all.
Speaker 5: Yeah, So there are two things that are really important here.
Speaker 5: The first one is that we have really low float
Speaker 5: actually trading for SpaceX. We know it is about five
Speaker 5: percent or less than five percent of total shares became
Speaker 5: available in the io. That can make trading very volatile interday,
Speaker 5: and it can elevate stock prices because there's just not
Speaker 5: that much float on the market.
Speaker 6: So that can elevate the stock price.
Speaker 5: But then the total shares outstanding, even ones that are
Speaker 5: locked up right now, is what's used to calculate the
Speaker 5: market cap, so it can sort of elevate things there.
Speaker 5: The second thing you brought up price to sales. This
Speaker 5: is so important to think about. So SpaceX at about
Speaker 5: two point seven trillion valuation right now, it's alongside Amazon
Speaker 5: and Microsoft. But the total amount of revenue that SpaceX
Speaker 5: is bringing in tells a very different story. So last
Speaker 5: year in twenty twenty five, SpaceX had about nineteen billion
Speaker 5: dollars in revenue and Microsoft, in comparison, had two hundred
Speaker 5: and eighty one billion dollars in sales, So that's a
Speaker 5: huge difference. It's about fifteen times more than SpaceX, even
Speaker 5: though they're valued right now based on market cap at
Speaker 5: a roughly the same.
Speaker 2: It's come Rhini case SpaceX up for a third day
Speaker 2: a lot to factor in. Thank you, Franklin Templeton BACKSPACEX
Speaker 2: long before it's IPO. Really interesting private public market and
Speaker 2: esther in the tech space here in the Bay Aria
Speaker 2: Sarah Rahi Franklin Timmeton, portfolio managers with us. It's so
Speaker 2: great to have you on the program.
Speaker 6: Great, thank you for having me.
Speaker 2: Timing is everything right. Let's start with the Cursor deal,
Speaker 2: if we may. So, we knew that this could happen
Speaker 2: because they had the right to acquire Cursor. They stayed
Speaker 2: in April, but they've moved very quickly, you know since
Speaker 2: since the IPO on Thursday Friday. What is it that
Speaker 2: you think SpaceX gets with Cursor? What do you think
Speaker 2: they intend to do?
Speaker 7: Yeah, you know, the company has been very clear that
Speaker 7: they want to have a role in the AI space
Speaker 7: and that they want to be one of the competitors
Speaker 7: within that space. And so with GROC they have the
Speaker 7: opportunity here and now with the Cursor team, as you
Speaker 7: were just talking about earlier, they acquihire a team here
Speaker 7: that they can ultimately come in and potentially give them
Speaker 7: a chance with the competitors in the space. So I
Speaker 7: think it's brilliant. You have the successful IPO and the
Speaker 7: ability to come in and do this deal right on
Speaker 7: day three now.
Speaker 6: So pretty big aquire, Pretty big acquire.
Speaker 2: I mean the mechanics of that I find really interesting
Speaker 2: because SpaceX's valuation, actually it's valuation today relative to Friday,
Speaker 2: it's a bit of an advantage right in an all
Speaker 2: stock deal. How do you feel about it? You know,
Speaker 2: the mechanism a sixty billion dollar deal right now in
Speaker 2: how that impacts the stock as an existing investor.
Speaker 7: Yeah, look, we were already we knew this was going
Speaker 7: to come, right, and so the fact that it's coming
Speaker 7: now it makes sense. With the fact that this IPO
Speaker 7: was very successful. I mean, they've done a fantastic job.
Speaker 7: The Bankersterer, Goldman, Morgan Stanley did a great job bringing
Speaker 7: this to the public markets. It actually opens up the
Speaker 7: public markets for other deals to come and so it
Speaker 7: makes a lot of sense for them to do this
Speaker 7: cursor deal here now and ultimately take advantage of their
Speaker 7: stock price.
Speaker 2: Do you mind if we talk a little bit about
Speaker 2: Franklin Tumbledton's history with SpaceX. You know, maybe viewers of
Speaker 2: Bloomberg Tech will be a little bit more familiar of
Speaker 2: kind of like the mutual funds and private growth teamams
Speaker 2: participating in a lot of the themes we cover. Franklin
Speaker 2: Tumbleton's name that comes up, but just how you got
Speaker 2: in and the journey now to being a public holding
Speaker 2: in the.
Speaker 6: Funds, Yeah, definitely. So I am.
Speaker 7: I work on a team, the Franklin Equity team at
Speaker 7: Franklin Templeton and here. Over a decade ago, we decided
Speaker 7: that it was time for us to invest in private companies,
Speaker 7: not only through our mutual funds, but also we have
Speaker 7: dedicated venture.
Speaker 6: Vehicles within our group.
Speaker 7: And the reasons we did this was, as you've been
Speaker 7: talking about, the companies have been staying These companies have
Speaker 7: been staying private longer, so a lot of the value
Speaker 7: creation was happening within the private markets. Well, we have
Speaker 7: we have, we are based in Silicon Valley, we have
Speaker 7: the same capabilities, and so we decided we should not
Speaker 7: only take advantage of that and generate the returns and
Speaker 7: bring those to our shareholders, but also the insights that
Speaker 7: you get from investing in these companies, both from just
Speaker 7: investing in the companies and themselves and a successful IPO
Speaker 7: here you saw with SpaceX, or just the insights and
Speaker 7: is disruption coming to some of our existing holdings, and
Speaker 7: how do we think about the market leaders in the
Speaker 7: space and whether or not whether or not these private
Speaker 7: companies will overtake them. So those insights our analysts benefit
Speaker 7: from that. So this is something you know with SpaceX.
Speaker 7: We knew them when they were doing reusable rockets for
Speaker 7: cargo ships, but knowing them over time. Our team met
Speaker 7: with Elon in twenty sixteen, I mean even prior to
Speaker 7: that with Tesla, right, but with Elon on SpaceX and
Speaker 7: understanding what he was going to do here, having that faith,
Speaker 7: and then learning from him about AI, infrastructure, defense, space,
Speaker 7: the space economy.
Speaker 6: It's been an incredible journey for us.
Speaker 2: You make a lot of interesting points about how things
Speaker 2: have changed. The story started with reusability and the economics
Speaker 2: of reusability, and now it's something very different. If you
Speaker 2: just got on the TAM and the perspectives, but also
Speaker 2: like the public market investor view, like what is the
Speaker 2: proxy that you look at? I think we're in a
Speaker 2: space now where we're moving outside the mag seven Yes,
Speaker 2: but like if it was in the software space, you go, okay,
Speaker 2: this is a private company where I see a proxy
Speaker 2: in the public market SpaceX.
Speaker 6: We don't have anything like it.
Speaker 7: And look, it's been a huge discussion on what industry,
Speaker 7: how is gigs going to classify this? Is it going
Speaker 7: to be in the telecom industry, is it going to
Speaker 7: be in industrials. We started out thinking it would be
Speaker 7: an industrial entity and what our share investor is going
Speaker 7: to be selling to buy this, but ultimately you ended
Speaker 7: up it's now classified under communications. And look, our analyst
Speaker 7: covering it has to understand AI has been working very
Speaker 7: closely with our tech team, has to understand defense, has
Speaker 7: to understand space. A new economy here, and we're all
Speaker 7: still just learning more and more about that. I mean,
Speaker 7: it's a new frontier.
Speaker 2: Let's bring it back to the news of the day
Speaker 2: in the Cursor deal. You know a lot of people
Speaker 2: will focus on this the very sort of specific upfront
Speaker 2: coding story, but there is a story with the models themselves,
Speaker 2: and I just wonder how much you assign value to
Speaker 2: GROC and the future opportunity of GROC over At Franklin.
Speaker 6: Templeton, Yeah, look, you don't.
Speaker 7: The way we think about it is just starlink alone
Speaker 7: brings a lot of value for SpaceX and a lot
Speaker 7: of their endeavors with an AI. A big part of
Speaker 7: it is funding some of that and you know cash
Speaker 7: generation from cash generation, and look, Elon has talked about
Speaker 7: this from day one. Gwinn talks about it. They want
Speaker 7: to go to Mars. They're doing everything in their power
Speaker 7: to make us multiplanetary. That Their goal here is to
Speaker 7: get there, whether it's GROCK and AI AI infrastructure. You
Speaker 7: saw them doing deals with anthropic generating revenue here.
Speaker 6: Today to get to that goal.
Speaker 7: Anything that can get them on that path I think
Speaker 7: is the right move for them.
Speaker 2: Sarah Rahi, Franklin, Templeton, Davy On, Bloomberg Tech. It's so
Speaker 2: great to have you here in Essa. Thank you very much.
Speaker 2: An update on the story brought yesterday in Video's bond sale,
Speaker 2: the AI chip Giant sold twenty five billion dollars in
Speaker 2: investment grade debt, making it one of the largest corporate
Speaker 2: bond deals of the year. Investor demand was strong, with
Speaker 2: orders topping eighty five billion dollars according to sources, and
Speaker 2: video joins companies like Alphabet and Amazon flooding debt markets
Speaker 2: with hundreds of billions of dollars of issuance as they
Speaker 2: build data centers, another infrastructure needed for AI's rapid expansion. Okay,
Speaker 2: coming up anthrop it meets with US officials is IT
Speaker 2: tries to resolve a national security dispute with the Trump
Speaker 2: administration over it's most advanced AI models. We have more
Speaker 2: on that next, this is Bloomberg Tech.
Speaker 8: There are some players who are more trustworthy than others.
Speaker 8: What I think needs to happen is that the trustworthy
Speaker 8: actors need to need to get together and put the
Speaker 8: untrustworthy actors in a position where they kind of have
Speaker 8: to adopt the same standards. With a lot of experience,
Speaker 8: I've learned that there are some folks who don't do
Speaker 8: the right thing on their own. But if there's a
Speaker 8: majority of the industry that's doing the right thing, then
Speaker 8: I think the rest of the industry is kind of
Speaker 8: they're left in a position where there's not much they
Speaker 8: can do that then come along.
Speaker 2: That was Anthropic CEO Dario Ammo Day they're in late April,
Speaker 2: weighing in on accountability in the AA industry and now
Speaker 2: and topics, trying to work through a growing dispute with
Speaker 2: the Trump administration about concerns on foreign access to its
Speaker 2: most advanced air models, which led to the company temporarily
Speaker 2: suspending global access. Senior technical staff met with Commerce Department
Speaker 2: officials on Monday, as talks continued as Mike Sheppard joins
Speaker 2: us from DC, Sheep bring us up to speed. What
Speaker 2: do we need to know?
Speaker 9: Well, what we need to know is this that there
Speaker 9: so far is very little public sign of progress and
Speaker 9: discussions between the government and Anthropic. The senior technical step,
Speaker 9: as you said, did sit down with US officials, but
Speaker 9: there has really been no evidence of a breakthrough, no
Speaker 9: evidence of really what remedies the company might need to
Speaker 9: pursue with the government's behest to solve this security issue,
Speaker 9: and we don't even really have a fully clear picture
Speaker 9: from the US government side of what that is. The
Speaker 9: company has pointed to this jail break concern the idea
Speaker 9: that Garbrails on its Feeble five system could somehow be evaded,
Speaker 9: empowering that software into something that approaches the cyber security
Speaker 9: capabilities of Mythos, and all of this is unfolding at
Speaker 9: this time of great urgency in the AI race. For
Speaker 9: the US, of course, the question is will it maintain
Speaker 9: its lead over China, and Anthropic, of course, is one
Speaker 9: of the top developers, plays such a crucial role in that.
Speaker 9: And then just add to it all the billions, if
Speaker 9: not trillions of dollars in capex that we are seeing
Speaker 9: poured toward this sector by different companies, not only Anthropic
Speaker 9: but the public tradedly publicly traded ventures as well, the SPACEXIPO.
Speaker 9: So much of that money is going to support the
Speaker 9: infrastructure needed to run top flight models like Mythos and Fable,
Speaker 9: which right now are off the market.
Speaker 2: The COMMAS Department put in an export control Friday which
Speaker 2: basically blocked foreign national access to Mythos and Fable, and
Speaker 2: Anthropics response was like, well, in that case, we'll take
Speaker 2: it offline for every because we can't on a case
Speaker 2: by case basis check user status and many of their
Speaker 2: own employees are foreign nationals. But there is something broader
Speaker 2: here in Anthropic and industry's relationship with the administration. Where
Speaker 2: do we stand in that the litigation, the designation on
Speaker 2: supply chain risk.
Speaker 9: Well, this is just the latest flare up between Anthropic
Speaker 9: and the administration really since the start of the year.
Speaker 9: You're referring, of course, to the dispute right now with
Speaker 9: the Pentagon over the company's ability to continue providing the
Speaker 9: military with access to its sophisticated AI tools. There's a
Speaker 9: clog gov AI tool that was approved for classified use
Speaker 9: by the military and in fact have been deployed as
Speaker 9: part of the US war effort against Iran. Now, the Pentagon,
Speaker 9: in this dispute with the company, has really fixed on
Speaker 9: what Anthropic has demanded as two conditions of being able
Speaker 9: to continue its Pentagon work, and that is it once
Speaker 9: guarantees that there will be no surveillance supported by CLAUDE
Speaker 9: and that there will be no fully autonomous weaponry. Now
Speaker 9: the government says that, look, we won't do either of
Speaker 9: those things. Those extra conditions are way too much, and
Speaker 9: that just presages a lasting few between these two sides
Speaker 9: unless they can reach some sort of an agreement here.
Speaker 2: And begs Mike Shephard, thank you very much. As Washington
Speaker 2: wrestles with AI security concerns at home, the technology is
Speaker 2: also taking center stage at the g seventh summit in France,
Speaker 2: where global leaders and AI tech executives and meeting this week.
Speaker 2: Manibas Tyler Kendall joins us like from Evion France. And
Speaker 2: there's the story on the Bloomberg this morning about how
Speaker 2: US Western allies are now taking into account this Commerce
Speaker 2: Department decision with Anthropic. How's that playing out on the ground.
Speaker 10: Well, And I actually had the chance to catch up
Speaker 10: with the spokesperson for France's Foreign Ministry who told me
Speaker 10: that the Trump and Administration's moves here that you've been
Speaker 10: outlining just underscore the need for European allies to have
Speaker 10: what he called, quote strategic autonomy when it comes to tech.
Speaker 10: It is no doubt going to be a focus here
Speaker 10: on the ground as these world leaders, including President Trump,
Speaker 10: are going to be in the same room with some
Speaker 10: of these top tech CEOs, including from Anthropic as well
Speaker 10: as Open AI. And in fact, earlier today Bloomberg News
Speaker 10: was able to obtain a draft statement related to this
Speaker 10: meeting that is set to take place tomorrow, which says,
Speaker 10: in part that the leaders are expected to pledge to
Speaker 10: quote further discuss emerging opportunities and potential risks arising from AI,
Speaker 10: notably in the financial sector. It is definitely going to
Speaker 10: be a theme here going forward. At G seven official
Speaker 10: tells me that that meeting tomorrow will also focus on
Speaker 10: potential regulations that all of these G seven allies could
Speaker 10: come together on, as well as respecting individual countries regulations
Speaker 10: when it comes to the tech and ed Another thread
Speaker 10: that we're watching very closely here is that just yesterday
Speaker 10: President Trump threatened a one hundred percent tieriff on France
Speaker 10: over the use of its digital services tax. This has
Speaker 10: been something that the Trump administration has long lobbied criticism
Speaker 10: against European allies about. I had the chance to ask
Speaker 10: the French spokesperson about this. He did confirm that there
Speaker 10: are ongoing discussions about the DST, but he said that
Speaker 10: this is not a moment for quote antagonism.
Speaker 2: Most Tyler Kendall and Avian France the G seven, thank
Speaker 2: you very much. Another story we're watching in AI open
Speaker 2: AI's losses ballooned last year as the company poured money
Speaker 2: into the AI race. The Financial Times reports the chat
Speaker 2: GBT maker spent more than thirty four billion dollars on research,
Speaker 2: marketing and other expenses. In twenty twenty five, driving an
Speaker 2: eightfold increase in net losses. Open Ai did not comment
Speaker 2: on the Financial Times report. Data briggs Is Data Summit
Speaker 2: twenty twenty six is underway in San Francisco, as the
Speaker 2: software maker competes with Snowflake and Google. It's launching new
Speaker 2: enterprise AI products including Genie one, Gentic co worker for
Speaker 2: business teams, and Unity AI gateway that helps businesses control
Speaker 2: their costs. Talent is proving the biggest expense for them,
Speaker 2: but the companies yet to tap the public markets this
Speaker 2: year amid other blockbuster tech listings. Is what CEO Ali
Speaker 2: Gazi told us yesterday.
Speaker 11: So well, you know, we're not We've not said that
Speaker 11: we're doing any fundraise. I know that there's you know,
Speaker 11: rumors about this, but we're always talking to investors. Why well,
Speaker 11: we're investing heavily into these new product categories. We just
Speaker 11: launching a completely new product for ours that's called Customer
Speaker 11: Lake which is an area of marketing, so we're you know,
Speaker 11: targeting marketing folks, which is not an area where we.
Speaker 12: Used to be active.
Speaker 2: You know.
Speaker 11: Two months ago we launched a security product called lake Watch.
Speaker 12: And we're getting into a security space.
Speaker 11: You know, it takes resources to get into these spaces
Speaker 11: and all of these products that I mentioned, we're building
Speaker 11: it agentic first, so it's like they start with agents
Speaker 11: from the ground up.
Speaker 12: We're not boulting it on. That requires that.
Speaker 11: You have AI researchers, as we all know, AI researchers
Speaker 11: you know, don't come cheap.
Speaker 12: So all this requires funding.
Speaker 11: So we're always in talk with investers, you know, to
Speaker 11: be able to just be aggressive and expand and launch
Speaker 11: new products, do research, you know, go to more.
Speaker 12: Regions, be available in every part of the world.
Speaker 11: So you know, that's that's that's why we're you know,
Speaker 11: require capital.
Speaker 2: Allie, let's let's end it here. Earlier this month you
Speaker 2: told me, you know, Data Bricks in the end will
Speaker 2: be a public company. You want to be a public company,
Speaker 2: but that you think this is just a terrible year
Speaker 2: to go public. Do you stand by that. Has anything
Speaker 2: changed in your mind in the last two weeks.
Speaker 12: No, I think that.
Speaker 11: You know, it's just there's three Mega I pos that
Speaker 11: have been rumored. One of them happened, you know, so
Speaker 11: letting those kind of go through the system and see
Speaker 11: how that sort of plays out and things stabilize a
Speaker 11: little bit, and I think that you know, getting a
Speaker 11: little bit further in the sort of AI revolution that
Speaker 11: we're going through.
Speaker 12: I prefer for the.
Speaker 11: Company to go public when you know, water is a
Speaker 11: little bit more palm and there's a little bit more predictability.
Speaker 11: So you know, I stand by what I said. I
Speaker 11: think for most of the companies, you know, it's probably
Speaker 11: way best to wait it out. And that's also what
Speaker 11: CEOs that I know tell me that I'm thinking about
Speaker 11: the IPO. They're saying, you know, I don't want to
Speaker 11: you know, go between you know, two mega IPOs like that.
Speaker 2: It was data break CEO Ali GODSI let's go out
Speaker 2: to bloom Bag, to Jahara and in New York for
Speaker 2: everything else while we track in your horror, Hi.
Speaker 13: Ed, Well, it's time for talking tech. Fir stup prediction
Speaker 13: market platform Caushi has developed a new AI agent designed
Speaker 13: to stress test the wording of its contracts. The company
Speaker 13: says the tool, known internally as Harrison, helps identify potential
Speaker 13: issues before they affect the millions of wagers it handles
Speaker 13: each day on events ranging, of course, from elections to
Speaker 13: sports games and award ceremonies. Plus robin Hood is the
Speaker 13: latest fintech to downsize. The online brokerage is eliminating three
Speaker 13: hundred jobs, adding to a deepening wave of layoffs across
Speaker 13: the industry. The company says the latest cut is to
Speaker 13: quote further accelerate parts velocity and remain lean and disciplined.
Speaker 13: No mention of AI and several studios inside Microsoft's Xbox
Speaker 13: gaming division are an active negotiations to spin off as
Speaker 13: they try to avoid closure. That's according to sources. The
Speaker 13: talks come as newly appointed CEO Asha Sharma accelerates a
Speaker 13: broader restructuring of the business.
Speaker 6: And I'll leave the gaming.
Speaker 4: Up to you.
Speaker 2: Thank you very much, Yahara, and a coming up. Sean maguire,
Speaker 2: who LEDs to COIs SpaceX Investment, joins us to talk
Speaker 2: about the Cursor deal, orbital data centers, and so much more.
Speaker 2: This is what markets look like. Reminder Kevin Walsh FED
Speaker 2: decision debut Wednesday. This is Bloomberg Tech. Welcome back to
Speaker 2: Bloomberg Tech. It's just the third trading day in SpaceX's
Speaker 2: life as a public company, and my goodness, so many headlines.
Speaker 2: It's kind of been an interesting, volatile session. And Carmen
Speaker 2: Ryne made the point earlier in the show that you
Speaker 2: need to kind of look at the flow and the
Speaker 2: volumes that are going on. But at one point in
Speaker 2: the session we were really out of this world. Sorry,
Speaker 2: not sorry. There is a lot of numbers to go
Speaker 2: through and the lot to pass here, So let's check
Speaker 2: in on these SpaceX shares with Bluebots. Cross Asset reporter
Speaker 2: Isabel Lee.
Speaker 14: Is about hi and out of this world. Indeed, you
Speaker 14: see the stock rallying for the third straight day, and
Speaker 14: it's contractors are past the market cap of Amazon and
Speaker 14: Microsoft to become the fourth largest company in the world.
Speaker 14: So you see the rally today pushing the market cap
Speaker 14: of SpaceX to nearly three trillion dollars. So obviously this
Speaker 14: comes ferce that the market will not be able to
Speaker 14: adjust an IPO this big, and obviously it bodes well
Speaker 14: for the likes of a DROPIC and open Ai which
Speaker 14: is waiting in the wings, all both valued at almost
Speaker 14: one trillion dollars. And to be sure, the price action
Speaker 14: is driven by just a small percentage of shares, but.
Speaker 4: Still it's so interesting.
Speaker 14: And you look at the next page, and this is
Speaker 14: the ETF world, which I really love to look at
Speaker 14: So all of these issuers filed to launch nearly a
Speaker 14: dozen SpaceX link ETFs, so they're both leveraged. They're all
Speaker 14: leverage rather, so they track SpaceX two times to day
Speaker 14: upside and two times to the downside, and in total
Speaker 14: on Monday all of them combined, so one billion dollars
Speaker 14: in trading volume, which is easily a record for any
Speaker 14: single stock etr for any new launch, and a cohort
Speaker 14: like this. So the friends is just really continues, and
Speaker 14: it's really hard not to imagine that because the windfall
Speaker 14: is just so hard to ignore. And you look at
Speaker 14: these companies, these are the ones that are gaining billions
Speaker 14: and billions in net windfall. Take a look of Balor
Speaker 14: Equity Partners. This is founded by muss Ally Antonio Gracia,
Speaker 14: so nearly seventy billion dollars at stake that they have
Speaker 14: founders fund. This is a venture capital firm led by
Speaker 14: Peter Theil. It now has a fifty billion dollars stake.
Speaker 6: Sequoya has twenty billion.
Speaker 14: They're one of the first companies to back SpaceX in
Speaker 14: twenty nineteen, so first move and move there, and they
Speaker 14: were the first to put the trust in Elon Musk
Speaker 14: among the first and Anderson Horowitz a ten billion dollars,
Speaker 14: so really lots of excitement and billions at stake.
Speaker 2: Ed Isabelli at New York City, thank you very much.
Speaker 2: Conversation been looking forward to for some time now. We're
Speaker 2: joined by Sean MacGuire, a partner as Core Capital. With
Speaker 2: the firm, it has invested around two billion dollars across
Speaker 2: funds into SpaceX. That includes an investment into x the
Speaker 2: platform formerly known as Twitter, and all told, that amounts
Speaker 2: to a nearly one and a half percent stake in
Speaker 2: SpaceX SPACEXAI. There's a much bigger story than those two parts,
Speaker 2: the rocket part and the AI part. Welcome to Tech.
Speaker 4: Thank you for having me.
Speaker 15: And we're both football fans, so maybe we even get
Speaker 15: some time for some football commentary.
Speaker 2: There is a lot to discuss. I think should we
Speaker 2: just start with cursor like it's right in front of us.
Speaker 2: The focus of this morning was, oh well, Elon Musk
Speaker 2: has been quite honest about XAIS need to catch up
Speaker 2: in coding visa vanthropic OpenAI. What I'm trying to understand
Speaker 2: is what this means for the models themselves. Do you
Speaker 2: do you have a sort of thesis on that.
Speaker 4: Yeah.
Speaker 15: Look, I've said this publicly, but I think about SpaceX
Speaker 15: as there's five layers of the company or business. Layer
Speaker 15: one is launch. This is foundational, it's kind of the
Speaker 15: future of the company. Layer two is connectivity, which is
Speaker 15: you know, in its early stages with stallink and direct
Speaker 15: to sell, but kind of proven and I think the
Speaker 15: compounding is pretty easy to underwrite. Layer three is compute,
Speaker 15: which today is terrestrial and in the.
Speaker 4: Future will be orbital as well.
Speaker 15: I think that the Google ananthropic deals kind of show
Speaker 15: show that that is very likely to work. And I
Speaker 15: actually want to spend more time on trust you Compute
Speaker 15: later because I think it's a very very exciting and
Speaker 15: underappreciated part of we will of.
Speaker 4: The company today. Layer four is the model layer.
Speaker 15: I think that's where probably rightfully so, most investors don't
Speaker 15: know how to assess where SpaceX SPACEXAI is today, and
Speaker 15: so I think we should talk about that the more.
Speaker 15: And that's where Cursor fits in. And then layer five
Speaker 15: is all the other bets. It's sayings that you know,
Speaker 15: people today don't even know how to think about it.
Speaker 15: That's terrify, that's a moon base someday that has a
Speaker 15: rail gun launching you know, orbital satellites in space.
Speaker 4: But look on the on the Cursor deal.
Speaker 15: I think people are underappreciating just how good that team
Speaker 15: is and also how well they work with Elon and
Speaker 15: the company A.
Speaker 2: Lost guests cooled to Inaquahar. That's just it's a sixty
Speaker 2: billion dollar aquah It's.
Speaker 15: It's I mean, I don't think when a company has
Speaker 15: a three billion plus run rate is the reported number
Speaker 15: in you know, three is a three year old company.
Speaker 15: I don't think it's only an aquahier, but I do.
Speaker 15: I do think that this is one of the best
Speaker 15: teams has ever been assembled in the Cursor team. And
Speaker 15: I also think they've proven over the last few months
Speaker 15: that they can keep pace with Elon.
Speaker 4: Like it is, unless.
Speaker 15: You've seen it, it is impossible to explain the intensity
Speaker 15: and work ethic of Elon and Michael and the team
Speaker 15: have kind of shown that they can keep pace and
Speaker 15: fit into this much broad ecosystem adding value, you know,
Speaker 15: on the on terrifab, planning their orbital satellites model layer,
Speaker 15: you know, cleaning up data to train models, you know,
Speaker 15: helping plan infrastructure.
Speaker 4: For the future.
Speaker 15: It's just like it is such a strong team that
Speaker 15: can go all the way to the bar metal in
Speaker 15: terms of understanding everything needed to build a model of
Speaker 15: the future. And so I like, no, it is not
Speaker 15: an aquhier, but I cannot stress how good that team is.
Speaker 15: And for me personally, it makes me much more optimistic
Speaker 15: that SPACEXAI will win or at least be one of
Speaker 15: the winning players on the Model air.
Speaker 2: You're someone that's embedded in the teams. When I say embedded,
Speaker 2: I mean you were able to go in work with
Speaker 2: the team, see what they're working on across space x
Speaker 2: xai X. And when I said that you were coming
Speaker 2: on the show, that was pretty much one of the
Speaker 2: questions that we got for you is how do you
Speaker 2: think Elon must takes that cursor team and integrates it
Speaker 2: and moves quickly. You know, there's a particular musk way
Speaker 2: of doing things. But but you know, this has happened
Speaker 2: three days since an IPO. It's pretty fast.
Speaker 4: Look, I think there was a couple months.
Speaker 15: You know, I don't know what the right technical word is,
Speaker 15: and you know, I'm on live TV and there's a
Speaker 15: recent IPO, But I think there was a roughly two
Speaker 15: month trial period and I think that only one percent
Speaker 15: or less entrepreneurs could survive that trial period of working
Speaker 15: very closely with like a pass the test.
Speaker 4: Yes, I think I.
Speaker 15: Think Cursor passed the test, showing that they can keep pace,
Speaker 15: that they can operate without making mistakes, that they can
Speaker 15: actually elevate what's already one of the.
Speaker 4: Most talented teams in the world.
Speaker 15: And so I don't view this as like three days
Speaker 15: after IPO, there's, you know, something that came out of nowhere.
Speaker 15: I view this as there was you know, many months
Speaker 15: leading up to that two month period and then two
Speaker 15: months of like deep deep partnership and so like, I
Speaker 15: personally think the probability that this isn't a creative acquisition
Speaker 15: is like ninety nine point ninety nine nine percent because
Speaker 15: the trial.
Speaker 4: Was so intense.
Speaker 2: Sean before we get to the near cloud business, I
Speaker 2: think that's like really important and timely. We're in day
Speaker 2: three of trading as a public company, and a lot
Speaker 2: of people will make a lot of the milestone of
Speaker 2: being worth more than Amazon. Maybe that happens at the
Speaker 2: Clothes maybe it doesn't. And I'm guessing you'll tell me
Speaker 2: you'll that you'll distribute to the LPs when the time
Speaker 2: comes and you expect them to hold the shares. You know,
Speaker 2: what is your kind of longer term position on SpaceX.
Speaker 15: I mean, look for me, on a personal level, and
Speaker 15: I say this to someone, I think I understand this
Speaker 15: business very well, but better than you know, most investors,
Speaker 15: better than almost any investor. I am personally in a
Speaker 15: hold my shares in this company forever, like quite literally,
Speaker 15: I think that. And sure there's some things that could
Speaker 15: change or you know, you know, in the macro ten
Speaker 15: years from now. But this is the biggest vision, the
Speaker 15: biggest mission of any company in history, going after the
Speaker 15: biggest markets of any company history, with the biggest moat,
Speaker 15: and so I just think the compounding is going to
Speaker 15: be like it's it's hard for people to even imagine
Speaker 15: the competitions.
Speaker 2: Part is the moat. I'm sorry to interrupt you, but
Speaker 2: the five layer Kate that you've outlined, which one.
Speaker 4: So obviously a great question.
Speaker 15: By far, the biggest moat is launch, which you know,
Speaker 15: we call people rocket scientists for a reason, or at
Speaker 15: least in the past. You know, that was an expression
Speaker 15: like the engineering that has gone into building Starship.
Speaker 4: I believe it's the.
Speaker 15: I believe it's the hardest like single engineering project that any.
Speaker 4: Company has ever done.
Speaker 15: I think it's to me, it's meaningly beyond like ASML,
Speaker 15: like intrinting, complexity of building ev machine.
Speaker 4: I'm happy to go into this.
Speaker 15: So I would say Mote number one is the launch business,
Speaker 15: which is just so far ahead of everyone else. Remote
Speaker 15: number two and for SORT, I think there's this kind
Speaker 15: of weird thing where I do think that people right
Speaker 15: now are really underestimating the thrust you'll compute past. Yeah,
Speaker 15: I'll go there in one second. And I think that
Speaker 15: the moat forterrestrial compute is not launch. It's the quality
Speaker 15: of the team that's been assembled. And you know, in
Speaker 15: kind of this very heavy distillation process over twenty years
Speaker 15: of finding just bringing in the most talented people from Stanford,
Speaker 15: from MIT, et cetera, and only one percent where zero
Speaker 15: point one percent actually survive this distillation process. What they
Speaker 15: prove that they can work with the level of intensity,
Speaker 15: well simultaneous level of team orientation, without making mistakes, et cetera.
Speaker 15: So that team has figured out how to solve basically
Speaker 15: every Harbord problem in the world, and when you apply
Speaker 15: them to something like Treshell data centers, they're now like
Speaker 15: they're building data centers faster and better than anyone else.
Speaker 15: And so the team is a second mote that I
Speaker 15: know that seems like, oh, you can just go create
Speaker 15: a team. No, you cannot, because it took twenty plus
Speaker 15: years of distillation. But I think that we're in this
Speaker 15: weird metastable period where when we go five years from now,
Speaker 15: I think that launch will again be the mote because
Speaker 15: I think that orbital compute will be dominating net new
Speaker 15: inference compute, like just absolutely dominating.
Speaker 4: But I think for the next five.
Speaker 15: Years, like the team feeds into dominating trust for compute,
Speaker 15: so as now you want to go to the trust.
Speaker 2: So the state of play is this the XAI team
Speaker 2: space Xai build data center quickly. And I think your
Speaker 2: argument is that on a dollar a token basis highly
Speaker 2: competitively operate them. If you go on to a map
Speaker 2: of Tennessee, they've Clossus one, Clusus two, and Clusus three.
Speaker 2: And a big question a lot of people had was,
Speaker 2: We'll hold on, it's amazing to get two billion dollars
Speaker 2: per month for Anthropic and Google, but why is that
Speaker 2: capacity not being used to train the latest greatest models
Speaker 2: at the model air or run inference on what Rock's
Speaker 2: already doing seemed like a blinder of a business decision,
Speaker 2: but longer term, like it's hard to reconcile.
Speaker 15: This is my personal opinion, kind of my assessment of
Speaker 15: the situation. First of all, one the way, I think
Speaker 15: that SpaceX in terms of.
Speaker 4: In terms of treastial compute and you know, you.
Speaker 15: Mentioned Amazon, Amazon and Microsoft are incredible businesses. I have
Speaker 15: massive respect for those founders, for the for the businesses,
Speaker 15: for Satia, running, running Microsoft, but a lot of their
Speaker 15: market cap comes from their cloud businesses. And you know,
Speaker 15: also for their legacy businesses in the case of you know,
Speaker 15: delivery or.
Speaker 4: Or the whole.
Speaker 15: Microsoft Office bundle and operating system, but a lot of
Speaker 15: it is their cloud businesses. We're in the generational transition
Speaker 15: of cloud from kind of legacy CPU based jobs to
Speaker 15: AI cloud. I strongly believe that SPACEXAI is the best
Speaker 15: in the world at building this next generation of AI clouds, like,
Speaker 15: not even close an order of magnitude, better at building
Speaker 15: threstrial compute in this AI era than anyone else.
Speaker 4: And it's not to say that other companies are bad.
Speaker 15: It's to say you have the best rocket scientists in
Speaker 15: the world are now using their skills to build threstal compute.
Speaker 15: And what that leads to, in my opinion is, I
Speaker 15: think people are really underestimating how much more compute is
Speaker 15: going to come online next year and the year after
Speaker 15: for SpaceX, and that, you know, means I really believe
Speaker 15: space going to have a surplus of compute, and I
Speaker 15: think it's very rational and I'm as an investor, I
Speaker 15: love that they are offering compute to Anthropic and Google
Speaker 15: because one, it brings in a ton of revenue that
Speaker 15: I think.
Speaker 4: In an IPO shows the world that all of.
Speaker 15: This CAPEX build out is not for nothing, and it's
Speaker 15: not all or nothing based on the model layer. There's
Speaker 15: this you know, massive value that the company has a
Speaker 15: dial of how they choose what to do with it.
Speaker 15: Kind of next point, I think that people are underestimating
Speaker 15: that most of that compute is kind of CLASSUS one,
Speaker 15: which is roughly ten miles away from classes two and
Speaker 15: CLASSUS three.
Speaker 4: It's heterogeneous GPS.
Speaker 15: Anthropic in particular has done an amazing job at being
Speaker 15: able to run inference on heterogeneous compute.
Speaker 4: Like there's a lot of nuances here anyways.
Speaker 2: And by that, I think you know the expert. They
Speaker 2: have different generations of GPU hop per black Quote. We're
Speaker 2: going to take a quick break and we're going to
Speaker 2: keep the covers going. We have plenty of time coming up.
Speaker 2: SpaceX has big plans for orbital data centers and Squoil
Speaker 2: Sew MacGuire is going to stick with us and break
Speaker 2: down how and when that space compute becomes reality. That's next.
Speaker 2: This is bloom bo tech.
Speaker 16: Data centers just require an enormous amount of power in
Speaker 16: order to run them, also to cool them, and so
Speaker 16: they've essentially hit what is an energy wall, and.
Speaker 17: Yet demand keeps accelerating.
Speaker 4: Globally.
Speaker 17: Electricity use for data centers is expected to double by
Speaker 17: twenty thirty. By twenty fifty, it will likely represent a
Speaker 17: tenth of all electricity consumed on Earth. So what happens
Speaker 17: when artificial intelligence outpaces the power and land needed to
Speaker 17: sustain it?
Speaker 10: Why?
Speaker 17: The answer may be above Earth. In late twenty twenty five,
Speaker 17: space startups star Cloud sent a satellite into orbit carrying
Speaker 17: an Nvidia H one hundred chip, the most powerful processor
Speaker 17: ever deployed in space. Star Cloud one is not a
Speaker 17: data center, not yet. It's a single prototype in orbit.
Speaker 17: The future that Star Cloud imagines is tens of thousands
Speaker 17: of satellites, each carrying chips like this one, working together
Speaker 17: to do complex large scale computing in space, also known
Speaker 17: as orbital compute. For many, The vision begins with a
Speaker 17: prompt from Earth beamed into space through laser links. The
Speaker 17: request is then processed by AI chips inside a satellite bus,
Speaker 17: which is powered by massive solar arrays stretching as much
Speaker 17: as four square kilometers. Together, these satellites form a linked
Speaker 17: computing network that then sends results back to Earth in milliseconds.
Speaker 9: Two years ago, when we first started talking about building
Speaker 9: data centers in space, people you know, frankly thought we
Speaker 9: were a.
Speaker 2: Bit crazy, and it does sound a little bit sci fi.
Speaker 17: What sounds like sci fi is a response to a
Speaker 17: very real problem on Earth. Data centers require vast amounts
Speaker 17: of land, water, and electricity, and as the AI systems
Speaker 17: inside them grow more powerful, the heat they generate is
Speaker 17: becoming harder and costlier to contain. In space. On the
Speaker 17: other hand, there are no land constraints or permitting battles
Speaker 17: not to mention access to almost unlimited solar energy if
Speaker 17: it can be made to work.
Speaker 2: So that was a segment from Bloomberger Regionals looking at
Speaker 2: orbital data centers, and here on the show, Shan MacGuire
Speaker 2: Square Capital still with us the firm stake of around
Speaker 2: one point five percent in SpaceX, and this is a
Speaker 2: big part of the plan in the prospectus. The team
Speaker 2: is saying at SpaceX as early as twenty twenty eight,
Speaker 2: in a moment, we're going to bring up a Bloomberg
Speaker 2: rendering of the design of and that's actually the SpaceX one.
Speaker 4: Right.
Speaker 2: I think you're probably in the camp of people that
Speaker 2: think they can do this quickly. Where do you stand
Speaker 2: on your data orbital data center outlook for SpaceX?
Speaker 4: I stand incredibly bullish, which just incredibly bullish.
Speaker 2: Yeah, I'm not surprised by that.
Speaker 15: Yeah, but like I think it's rationally rationally bullish. I
Speaker 15: think something that a lot of people are struggling with
Speaker 15: here is most people just never thought about what is
Speaker 15: the satellite? How do you build a satellite, What are
Speaker 15: the components of a satellite? What are the constraints around
Speaker 15: launching these satellites? And I think that people that have
Speaker 15: been following starlink closely are very well positioned.
Speaker 2: To assess because you can extrap lay out on both
Speaker 2: the economics but also the engineering and physics exactly.
Speaker 15: The orbital compute satellites are very similar in many many
Speaker 15: ways to starling satellites.
Speaker 4: I truly believe in.
Speaker 15: Elon said this last week in a video on orbital
Speaker 15: compute that the intrinsic complexity of making a stalling satellite
Speaker 15: is probably a little bit greater than an orbital compute satellite. So,
Speaker 15: I know this sounds kind of crazy, but starlink is
Speaker 15: on the satellites themselves. Stalling satellites are more complicated than
Speaker 15: orbital compute satellites. That said, orbital compute satellites are bigger.
Speaker 15: For them to make sense, they have to be much bigger.
Speaker 15: You basically want to put a whole server rack in space.
Speaker 15: Just in terms of doing inference on a model, you
Speaker 15: kind of need a minimum size for it to be useful.
Speaker 15: And you can't launch these bigger satellites unless you have starship.
Speaker 4: So almost all of.
Speaker 15: The difficulty of orbital compute satellites is in starship.
Speaker 4: It's in the launch vehicle.
Speaker 15: And so if you want to estimate when orbital compute
Speaker 15: is going to be scaling, it's really a question around
Speaker 15: like when is Starship going.
Speaker 2: To be still we're showing the videos. This is this
Speaker 2: is file right of Starship, and you know the basics
Speaker 2: of it are that on paper, you know, one hundred
Speaker 2: and thirty five one hundred and fifty metric tons payload
Speaker 2: to orbit. And I think there's some idea that in
Speaker 2: the future in iterations four hundred metric tons.
Speaker 15: I think the company said, you know, two hundred metric
Speaker 15: tons is pretty like pretty achievable. Four hundred metric metric
Speaker 15: guns maybe I don't know. It seems likely, but I
Speaker 15: don't know. You just make it. There's something with rockets
Speaker 15: where the taller you make it, kind of the easier
Speaker 15: things become the surface area of volume ratio and that
Speaker 15: benefits you with drag. So it seems very likely, but
Speaker 15: manufacturing it that skills harder.
Speaker 2: Can you compare and contrast?
Speaker 6: Then?
Speaker 2: So you outlined in great detail why you're bullish on
Speaker 2: the terrestrial data center neocloud business. Where does the orbital
Speaker 2: data center business compare over? It's just like reasonable timeline
Speaker 2: for you.
Speaker 4: Yep again, And I love the question. I appreciate the question.
Speaker 15: I think people are looking at orbital compute and they think,
Speaker 15: oh wow, this sounds so crazy, and I wasn't even
Speaker 15: I wasn't thinking about it two years ago. So it
Speaker 15: must take a long time. And a lot of Elon's
Speaker 15: timelines in the past have have been wrong, which you know,
Speaker 15: he says himself. But if you look at what an
Speaker 15: orbital compute satellite is, it's basically some compute element, whether
Speaker 15: that's a.
Speaker 4: GPU or a TPU or tranium or you know, proprietary.
Speaker 2: You said you have reference designs for all of them.
Speaker 15: Yeah, but so there's the compute, and you want a
Speaker 15: bout a server racks amount of compute. There are solar
Speaker 15: panels like that's easy, fully kind of proven, uh, spaces
Speaker 15: has huge experience building solar panels.
Speaker 4: And the third main piece are radiators.
Speaker 15: So this is what takes all the heat from the
Speaker 15: compute chips and radiates it into space via you know,
Speaker 15: via black body radiation.
Speaker 4: Those are the three main things.
Speaker 15: And then you also have laser links to connect to
Speaker 15: other satellites or you know, connect to the ground, and
Speaker 15: radio connect to the ground. Of these things, every individual
Speaker 15: component here is kind of fully fully proven by SpaceX,
Speaker 15: except for the compute side, but that is not it's
Speaker 15: just not that heart and so the satellites themselves are
Speaker 15: pretty easy to make.
Speaker 2: That's rendering, again, a bloomberg rendering of what you're describing.
Speaker 15: Yeah, So to me, it really is a question of
Speaker 15: when Starship is flying. I don't I don't understand why
Speaker 15: SpaceX wouldn't be able to have an orbital compute satellite
Speaker 15: up within you know, six months or so of the
Speaker 15: first storage Starship Payload play.
Speaker 2: We have ninety seconds left in the show. I can't
Speaker 2: believe it. We need to address the open AI and
Speaker 2: anthropic elephant in the room, which is on paper, they
Speaker 2: are very similar if you read the prospectus and the
Speaker 2: tam that SpaceX outlines their room on Earth and outside
Speaker 2: of the Earth for all three.
Speaker 15: I think intelligence is you know, the most important. It's
Speaker 15: the defining capability of our time. And I think there's
Speaker 15: unlimited demand for intelligence. I think it's very clear that
Speaker 15: SpaceX will be, in my opinion, will be the dominant
Speaker 15: provider of compute for intelligence. And I don't know what's
Speaker 15: going to happen on the model layer, but there's absolute
Speaker 15: space for all of these companies.
Speaker 2: Fifteen seconds. If you had like a kind of black
Speaker 2: Swan memo right now for the firm Sequoia. What would
Speaker 2: the headline be. What's the biggest focus for you?
Speaker 15: I think it's probably regulatory risk regulatory.
Speaker 2: Okay, let's leave it as a cliffhanger, and you're always
Speaker 2: welcome here back on the show, Bomberg Tech, thank you
Speaker 2: very much for coming in. That does do it for
Speaker 2: this addition of Bloomberg Tech. I want to check on
Speaker 2: the market. It's actually in the course of that conversation
Speaker 2: then as that one hundred headed south, it's paired some
Speaker 2: of its declines, but with down one point two, SpaceX
Speaker 2: is not at session highs, but it is up ten percent.
Speaker 2: It is past Amazon on market value as it stands
Speaker 2: where we close who knows long time away and maybe
Speaker 2: it will eclipse Microsoft and market cap by the closer
Speaker 2: as well. Stay with us on Bloomberg TV throughout the day.
Speaker 2: What a show it's been. Recap on the podcast. Really
Speaker 2: appreciate all of you that do listen to the show
Speaker 2: as a podcast. You know where to find it on Bloomberg, Spotify,
Speaker 2: Apple and iHeart from San Francisco. This is Bloomberg Tech.