00:00Let's start with the cursor deal if we may. So we knew that this could happen because they had the
00:04right to acquire cursor as stated in April. But they've moved very quickly since since the IPO on Thursday Friday.
00:11What is it that you think SpaceX gets with with cursor. What do you think they intend to do. Yeah
00:16you know the company has been very clear that they want to have a role in the AI space and
00:22that they want to be one of the competitors within that space. And so with Grok they have the opportunity
00:28here and now with the cursor
00:29team as you were just talking about earlier they acquire a team here that they can ultimately come in and
00:36potentially give them a chance with with the competitors in the space. So I think it's brilliant. You have the
00:41successful IPO and the ability to come in and do this deal right on day three now. So pretty big
00:48acquire. I mean the mechanics of that I find really interesting because SpaceX's valuation actually is valuation today relative to
00:55Friday. It's a bit of an advantage right in an all stock deal. How do you
00:59feel about it. You know the mechanism a 60 billion dollar deal right now in how that impacts the stock
01:07as an existing investor. Yeah look we were already we knew this was going to come
01:11right. And so the fact that it's coming now it makes sense with the fact that this IPO was very
01:16successful. I mean they've done a fantastic job. The bankers here Goldman
01:20Morgan Stanley did a great job bringing this to the public markets. It actually opens up the public markets for
01:25other deals to come. And so it makes a lot of sense for them to
01:27do this cursor deal here now and ultimately take advantage of their stock price. Do you mind if we talk
01:34a little bit about Franklin Templeton's
01:35history with SpaceX. You know maybe viewers of Bloomberg Tech will be a little bit more familiar of kind of
01:42like the mutual funds and private growth equity names
01:45participating in a lot of the themes we cover. Franklin Templeton's a name that comes up. But just how you
01:51got in and the journey now to being
01:53you know a public holding in the funds. Yeah definitely. So I am I work on a team the Franklin
01:59equity team at Franklin Templeton
02:01and here over a decade ago we decided that it was time for us to invest in private companies not
02:06only through our mutual funds but also
02:09we have dedicated venture vehicles within our group. And the reasons we did this was as you've been talking about
02:15the companies have been
02:16saying these companies have been staying private longer. So a lot of the value creation was happening within the private
02:22markets.
02:23Well we have we have we are based in Silicon Valley. We have the same capabilities. And so we decided
02:28we should not only take advantage of
02:30that and generate the returns and bring those to our shareholders but also the insights that you get from investing
02:36in these
02:36companies both from just investing in the companies and themselves and the successful IPO here you saw with SpaceX or
02:43just the insights
02:44and is disruption coming to some of our existing holdings and how do we think about the market leaders in
02:50the space and whether or
02:51not whether or not these private companies will overtake them. So those insights our analysts benefit from that. So this
02:58is something you know with
02:59SpaceX we knew them when they were doing reusable rockets for cargo ships. But knowing them over time our team
03:06met with Elon in 2016. I mean even prior to
03:09that with Tesla. Right. But with Elon on SpaceX and understanding what he was going to do here having that
03:15faith and then learning from
03:17him about AI infrastructure defense space the space economy. It's been an incredible journey for us. You make a lot
03:24of interesting
03:25points about how things have changed. The story started with with reusability and the economics of reusability. And now it's
03:32something very
03:32different if you just got on the time in the prospectus. Yeah. But also like the public market investor view
03:37like what is the proxy that
03:38you look at. I think we're in a space now where we're moving outside the mag seven. Yes. But like
03:43if it was in the software space
03:44you'd go. OK. This is a private company where I see a proxy in the public markets. SpaceX. We don't
03:50have anything like it. And look it's
03:51been it's been a huge discussion on what industry. How is how is Gix going to classify this. Is it
03:56going to be in the telecom industry. Is it going to be
03:58in industrials. We started out thinking it would be an industrial entity. And what are investors going to be selling
04:04to buy
04:05this. But ultimately you ended up it's it's now classified under communications. And look our analysts covering it has to
04:11understand. AI has been working very closely with our tech team has to understand defense has to understand space a
04:19new
04:19economy here. And we're all still just learning more and more about that. I mean it's a it's a new
04:24frontier. Let's bring it back to
04:25the news of the day in the cursor deal. You know a lot of people will focus on this the
04:29very sort of specific
04:30upfront coding story. But there is a story with the models themselves. And I just want to how much you
04:36assign
04:37value to Grok and the future opportunity of Grok over at Franklin Templeton. Yeah look you don't the way we
04:44think
04:44about it is just Starlink alone brings a lot of value for SpaceX. And a lot of their endeavors within
04:50AI
04:50a big part of it is funding some of that. And you know. From cash generation. From cash generation.
04:56And look Elon has talked about this from day one. Gwyn talks about it. They want to go to Mars.
05:01They're doing
05:01everything in their power to make us multi-planetary. That their goal here is to get there. Whether it's
05:08Grok and AI. AI infrastructure. You saw them doing deals with Anthropic generating revenue here today to get to
05:14that goal. Anything that can get them on that path I think is the right move for them.
