00:00Let's talk SpaceX. It's added. Let's continue to talk SpaceX. It's only the fourth day of trading. It's added one
00:07trillion dollars in market cap since Friday.
00:10It is currently the fifth largest company in the world. Almost the fourth of it overtakes Microsoft only like a
00:16measly hundred billion dollars away.
00:20And adding to the confusion about whether it's primarily traded as a rocket company, a telecom provider or an artificial
00:29intelligence play.
00:31Let's bring in Bloomberg Intelligence Global Head of Tech Coverage Mandeep Singh for this conversation.
00:35And you've had a lot of practice on this kind of talk because we've been doing it with Tesla for
00:41the past 15 years. Right.
00:42Is that a car company? Do they make humanoid robots. Right. Who cares. Right.
00:47It's just an Elon Musk company. And so you should buy it. Well I think the difference was Tesla was
00:52quite early stage when we started talking about it during their life as a public company.
00:58And I think SpaceX when I look at the market caps are passing Amazon. I mean there is a lot
01:04baked into the expectations.
01:05And look I am excited about orbital compute. I am really excited about the cursor acquisition.
01:12To me you know cursor could leapfrog into a frontier model provider because of the compute now they have from
01:20SpaceX.
01:21So if they're able to retain the talent at cursor and really scale cursor they would become a formidable player
01:28the likes of Anthropic and OpenAI and they could be a challenger in that regard.
01:33But it's a big if that you know everyone stays from cursor and they are able to scale that up
01:39and it's already priced in when I look at you know the market cap of SpaceX.
01:43By the way this market cap is stale. Oh yeah.
01:47It says 2.654 trillion but actually. I think we're about 2.7 now.
01:51Yeah. I mean 2.680. Round up to 2.7. And just on that note I mentioned this earlier Mandeep
02:00but Bill Ackman putting out on X yesterday.
02:02One of the things that makes SpaceX so valuable is how valuable it is.
02:06Talking about the cursor acquisition costing material less in dilution because of the high valuation.
02:11How important has it been for SpaceX to see this kind of. Well not this kind of market action. It's
02:17only up two tenths of one percent.
02:18But to see the prior day's market action in order to achieve the goals at once like buying cursor.
02:24Look I think overall where they are right now I can see SpaceX ramping up their CapEx now.
02:31Remember all the hyperscalers will be putting almost 100 billion dollars plus in CapEx in 2026 and possibly in 2027.
02:39So from that perspective SpaceX with this market cap has already become a hyperscaler.
02:45I can see them inching towards that hundred billion dollars CapEx just to set up compute.
02:50And the reason why you know we are talking about revenue growing threefold from 18 billion in their S1 is
02:59because of the compute deals.
03:01And these are terrestrial compute data centers that they are renting.
03:04By the way revenue will grow threefold and losses will grow what four or five times.
03:08What's what's the loss revenue ratio for SpaceX going to grow to.
03:13Well the computer.
03:14They're going to lose twice as much money as they make in revenue.
03:17But not with the compute deals.
03:17I'm going to push back a little bit on the compute deal.
03:20So if you look at the compute rental business.
03:23Yes it's not very high margin business.
03:25But that will not compound their losses.
03:27I mean if anything they're renting their Blackwells and the latest Nvidia chips for a higher rental price than your
03:35new cloud providers like Corvive and Nebbia.
03:38So from that perspective $11 an hour for the Blackwell GPUs is far higher than what anyone else is commanding
03:45right now.
03:45And I was surprised to see why Google is really paying up that much when they have their own TPUs.
03:51The answer is because XAI has the data centers with power.
03:56Everyone else is struggling to procure power right now for their chips.
03:59So it will be margin-egrative for sure when it comes to the rentals.
Comments