# SpaceX Jumps in First Trades Following Record $75 Billion IPO

An episode of [Bloomberg Intelligence](https://invisiblenetwork.ai/podcast/326301337), 12 Jun 2026, 24 min.

Audio: https://podtrac.com/pts/redirect.mp3/tracking.swap.fm/track/UVBrz8bN8aM2Xe47PEPu/traffic.omny.fm/d/clips/e73c998e-6e60-432f-8610-ae210140c5b1/7f534b8c-9e91-429a-b102-ae3c00090c6d/a7956a74-cc47-457b-953c-b467011fda38/audio.mp3?utm_source=Podcast&in_playlist=0ad812bf-fd15-4012-a18c-ae3c00090c76

Watch Paul and Scarlet LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Intelligence hosted by Paul Sweeney and Scarlet Fu -Anthony Hughes, Bloomberg US Equity Capital Markets Reporter, discusses SpaceX’s IPO. Shares of SpaceX climbed in their first day of trading after the company made history with a $75 billion IPO. The stock sold for $150 in its opening trade on Nasdaq, 11% above its $135 offering price, and climbed as high as $168.75. -George Ferguson, Bloomberg Intelligence Senior Aerospace, Defense, & Airlines Analyst, discusses SpaceX’s IPO. According to Bloomberg Intelligence: The strongest 2Q revenue growth should come from xAI, as the Anthropic data-center deal adds $1.5 billion and propels SpaceX sales to $7.3 billion. -Ross Hamilton, Chief Operating Officer at Space Network, discusses the broad impact of SpaceX’s IPO, and the space economy. See omnystudio.com/listener for privacy information.

## Transcript

[0:02] Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the
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[0:24] Speaker 2: I've got this seeing trading. It's now trading. It priced
[0:27] Speaker 2: at thirty five, opened at fifty here at one fifty six.
[0:31] Speaker 2: Anthony Hughes, Bloomberg US Equity Capital Markets Reporter.
[0:33] Speaker 3: What do you think you're Anthony, Well, I think you know,
[0:36] Speaker 3: eleven percent game on the first trade is probably a
[0:40] Speaker 3: number that would for most IPOs would be considered, you know,
[0:44] Speaker 3: what you would hope to achieve. But you know, in
[0:46] Speaker 3: the sense that this IPO, there's a lot of hype
[0:49] Speaker 3: and enthusiasm and a lot of people involved in this deal.
[0:54] Speaker 3: I think maybe people hoping for a bigger number.
[0:57] Speaker 4: I really like the fact that you started there because
[1:00] Speaker 4: the headlines were crossing as of the first thirty minutes
[1:03] Speaker 4: of trade, and the initial headline was that it was
[1:06] Speaker 4: indicated to open at one hundred and seventy five dollars
[1:09] Speaker 4: a piece, and it's been steadily going down we've gotten
[1:11] Speaker 4: headlines about you know, oh, now it's one seventy four,
[1:14] Speaker 4: and now it's one seventy two, Now it's one seventy
[1:16] Speaker 4: all the way down to one hundred and fifty. Is
[1:18] Speaker 4: that about sign Yeah?
[1:19] Speaker 3: Well, just to understand the process a bit better. I mean,
[1:22] Speaker 3: Morgan Stanley's a stabilization agent for the IPL and they
[1:25] Speaker 3: also have the role of opening the IPO. But basically
[1:29] Speaker 3: that process involves bringing together all these buyers and sellers
[1:32] Speaker 3: for this opening print, and you want to make sure
[1:34] Speaker 3: that the opening print is sort of ideally as fair
[1:38] Speaker 3: a price as you can get. And generally speaking from
[1:41] Speaker 3: what I'm told, that banks like to have about ten
[1:44] Speaker 3: percent of the deal size traded in that opening print.
[1:47] Speaker 3: So I think you can see the number there was
[1:49] Speaker 3: around sixty million shares and you know the IPO was
[1:52] Speaker 3: five hundred. You know, about ten percent of the stock
[1:54] Speaker 3: basically went through in the opening print. That's about standard, right,
[1:57] Speaker 3: But that allows the banks to be sort of confident.
[2:00] Speaker 3: I guess that you know, taking the buyers and the
[2:03] Speaker 3: sellers together, the price that you're opening the stock at
[2:05] Speaker 3: is is you know, the price that the market wants
[2:08] Speaker 3: to pay, and then you know looking at the success
[2:10] Speaker 3: of this first day trading. One measure of it will
[2:13] Speaker 3: be like where the stock closed, and you want the
[2:15] Speaker 3: stock to close near to or ideally above where it opens.
[2:18] Speaker 3: You don't want it to like you want to open
[2:20] Speaker 3: the stock really high and then it ended the day lower,
[2:23] Speaker 3: because that meant that would mean that a lot of
[2:24] Speaker 3: people lost money. So you know, that's the art of
[2:27] Speaker 3: opening an IPA. But this is just all one day's trading,
[2:29] Speaker 3: and it's many days ahead.
[2:30] Speaker 2: Yeah, exactly right. We've got close to one hundred million
[2:33] Speaker 2: shares trading hands here again, about one hundred and fifty
[2:36] Speaker 2: nine dollars one hundred and sixty dollars to share open
[2:38] Speaker 2: at one fifty after pressing it one thirty five here.
[2:42] Speaker 2: How long typically will we see I guess higher than
[2:47] Speaker 2: usual volume when a company goes public. Is it that
[2:50] Speaker 2: I'll get kind of exercised the first day? It does
[2:53] Speaker 2: a last a few days.
[2:54] Speaker 5: I think.
[2:55] Speaker 3: I think from my experience, the first day will be
[2:57] Speaker 3: the heaviest day for a while. I mean the first
[3:00] Speaker 3: days will also be relatively heavy. I mean SpaceX. You know,
[3:04] Speaker 3: the interesting thing with IPOs is that, you know, the
[3:06] Speaker 3: art of executing IPOs is to try and place the
[3:10] Speaker 3: stock with as many long term investors as you can
[3:12] Speaker 3: and investors that won't sell. But there's always a portion
[3:15] Speaker 3: of the stock you want to get to people who
[3:16] Speaker 3: are traders because obviously we want stock, some stock to
[3:19] Speaker 3: be in the market for people to buy and sell
[3:20] Speaker 3: and not to sort of overly exaggerate the price if
[3:23] Speaker 3: there's a real supply and demand imbalance. But you know,
[3:26] Speaker 3: I think they from the institutional book, they allocated like
[3:30] Speaker 3: seventy I think was seventy percent of the deal to
[3:32] Speaker 3: what they call long only investors or you know, people
[3:35] Speaker 3: who are people are not traders, and but you are
[3:37] Speaker 3: going to have an element of the you know, as
[3:38] Speaker 3: you know from your experience, you're going to have an
[3:40] Speaker 3: element of the book that's got to be going to
[3:42] Speaker 3: people who are a bit more short short term. But yeah,
[3:46] Speaker 3: the first first first day will probably be the biggest
[3:48] Speaker 3: day of trading. I mean may be different from SpaceX,
[3:50] Speaker 3: but yeah, I mean when you go and see SpaceX
[3:54] Speaker 3: do another maybe they'll do another stock sale in the
[3:56] Speaker 3: future or some sort of corporate event. Might it might
[4:00] Speaker 3: be a die when it's high, but this could be
[4:02] Speaker 3: you know, it could be the highest I'm training for
[4:04] Speaker 3: the stock.
[4:05] Speaker 2: It's interesting. I'm just looking at the rich go function
[4:08] Speaker 2: on the Bloomberg terminal had Elon's steak in SpaceX valued
[4:14] Speaker 2: at one hundred and thirty five dollars to share, which
[4:16] Speaker 2: placed him, again farther away, the number one richest person
[4:20] Speaker 2: on the planet, with a net worth of nine hundred
[4:22] Speaker 2: and seventy billion dollars. Now with the rise and the price,
[4:25] Speaker 2: he's well over a trillionaire. So there you go. That's
[4:28] Speaker 2: also kind of an interesting event, therey in the world's history.
[4:32] Speaker 2: I guess on paper, of course, on paper, of course,
[4:35] Speaker 2: exactly right. This has to be I'm gonna call, let's
[4:37] Speaker 2: just say, if we kind of trade like this today,
[4:40] Speaker 2: you know, you call this a successful IPO and a
[4:43] Speaker 2: successful historic IPO. For many reasons, not just least which
[4:48] Speaker 2: is the dollars involved. That bodes well. I would think
[4:52] Speaker 2: for the anthropics of the world, the open eyes of
[4:54] Speaker 2: the world, which have also filed registration statements to go public,
[4:58] Speaker 2: this has got to.
[4:59] Speaker 3: Be a good sign. Well, I think we'll see how
[5:01] Speaker 3: the stock trace to day. I mean to be honest,
[5:03] Speaker 3: coming out eleven percent out of the gate, you probably
[5:05] Speaker 3: might be a little worried that it could drift back
[5:07] Speaker 3: and maybe end not as well. But you know, I
[5:11] Speaker 3: think the banks have put a lot of work into this,
[5:13] Speaker 3: so you know, maybe maybe they know that they can
[5:16] Speaker 3: get it to finish around where it's where it's opened here,
[5:18] Speaker 3: or maybe there's more enthusiasm from the rest of the day.
[5:20] Speaker 3: But yeah, I think it shows you that seventy five
[5:23] Speaker 3: billion is I mean, we we've reported this is a
[5:25] Speaker 3: huge number. It's a record deal. But you know, I
[5:28] Speaker 3: think even the senior person there at Gold and Sacks
[5:31] Speaker 3: today I saw the note And something I've been thinking
[5:33] Speaker 3: a lot about is that, you know, the numbers we
[5:35] Speaker 3: talk about these days are so much larger than even
[5:37] Speaker 3: even a few years ago. We talk about trillions just
[5:39] Speaker 3: left hand, and you know, the amount of volume you
[5:42] Speaker 3: see in the IPO market we're talking you know, I
[5:45] Speaker 3: think I think the I think we're thinking globally maybe
[5:48] Speaker 3: three hundred billion, you know, someday that if all these
[5:50] Speaker 3: deals happen and and like that's that's a lot of
[5:52] Speaker 3: money to raise. And their market cap is obviously much
[5:55] Speaker 3: bigger than the trillions, but the amount of money that
[5:57] Speaker 3: they're sucking out of the market is is a relative
[6:00] Speaker 3: small amount of you know, well, well below one percent.
[6:03] Speaker 3: You know, it's like, I think the number was something
[6:04] Speaker 3: like twenty bases puts or something. It's not it's not
[6:07] Speaker 3: that much money these days.
[6:09] Speaker 1: What do we know.
[6:09] Speaker 2: About the lockup period here? Typically an ipel lockup is
[6:13] Speaker 2: one hundred and eighty days six months before the insiders
[6:16] Speaker 2: can sell their shares. What do we know about this transaction?
[6:18] Speaker 3: Yes, it's a bit of a long answer to that question.
[6:20] Speaker 3: It is a non traditional lock up. Normally you have
[6:23] Speaker 3: a six month lock up and everyone comes out and
[6:24] Speaker 3: can trade it six months and the stop falls as
[6:27] Speaker 3: a result. But here, you know, yeah, I've got to
[6:29] Speaker 3: take account this is twenty four year old, twenty four
[6:32] Speaker 3: year old company, so you know, it's not like it's
[6:35] Speaker 3: it's not like it had already had a very fairly
[6:39] Speaker 3: developed shareholder base. So you know, there's a logical argument
[6:42] Speaker 3: that you can maybe not have the standard lock up,
[6:45] Speaker 3: but they still have, you know, put some some standards
[6:50] Speaker 3: around it by making sure that the company's going to
[6:53] Speaker 3: have to report its first set of earnings before people
[6:55] Speaker 3: get to start to get out. But even then they'll
[6:57] Speaker 3: there'll be a small proportion of the people who will
[6:58] Speaker 3: be able to sell and then a little bit later
[7:01] Speaker 3: a bit more. But and the whole lock up sort
[7:03] Speaker 3: of basically comes off over a one year period, and
[7:05] Speaker 3: Elon Musk himself is locked up for a year or so,
[7:09] Speaker 3: and he probably wouldn't be selling, I don't think in
[7:11] Speaker 3: any substantial size in any case. But you know, there's
[7:15] Speaker 3: the point, is I guess that he's got he's got
[7:17] Speaker 3: a lot of pre IPO investors alongside him there, and
[7:19] Speaker 3: there are some there are definitely some of those investors
[7:22] Speaker 3: who who aren't investing in the IPO and do want
[7:25] Speaker 3: to get out because they only invest in private companies,
[7:27] Speaker 3: and other investors who are continuing. So that you know,
[7:30] Speaker 3: there's all different types of investors involved in an IPO
[7:32] Speaker 3: like this, and some of them are going to want
[7:34] Speaker 3: to sell and some of them are going to hang on,
[7:36] Speaker 3: and it's just going to be a bit of a
[7:37] Speaker 3: different bit different. But the lock up structure is quite complex,
[7:41] Speaker 3: stretches over a year. There are multiple multiple I think
[7:43] Speaker 3: it's eight to ten, might even be more periods when
[7:47] Speaker 3: a little bit of stock comes out like seven percent here,
[7:49] Speaker 3: eight percent here, and you know it's very it's all
[7:51] Speaker 3: outlined in the prospectives, but it's quite it's quite lengthy
[7:55] Speaker 3: and well considered.
[7:56] Speaker 2: So how about the retail coupon it? Yeah, do we
[8:00] Speaker 2: know generally how much kind of went to the retail.
[8:02] Speaker 3: Yeah, so I think if we look at the IPI
[8:04] Speaker 3: was like seventy five plus the green shoe, which will
[8:06] Speaker 3: be exercised because the stocks traded up will likely be exercised.
[8:10] Speaker 3: I think our understanding was that twenty percent of the
[8:13] Speaker 3: deal went to retail, so that would be a little
[8:15] Speaker 3: bit less than twenty billion dollars. The demand was more
[8:18] Speaker 3: than one hundred billion, and you have to you know,
[8:20] Speaker 3: when you talk about retail, after there's different types of retail.
[8:23] Speaker 3: There's the rich, rich, high network customers of the banks,
[8:26] Speaker 3: and then there's the robin Hood. There's you know, there's
[8:28] Speaker 3: the whole spectrum. There's the robin Hood customers. I mean,
[8:30] Speaker 3: if you talk about the robin Hood customers from all
[8:33] Speaker 3: the what people have said this morning, it sounds like
[8:37] Speaker 3: all hundreds of thousands of robin Hood customers got at
[8:40] Speaker 3: least a share, and that was the case probably with
[8:43] Speaker 3: some of the other digital platforms as well. But a
[8:45] Speaker 3: lot of people are disappointed because they only got one
[8:46] Speaker 3: share but maybe now they look at and see ten
[8:48] Speaker 3: percent gain, maybe they're not so disappointed. I don't they
[8:51] Speaker 3: looking at just taed.
[8:51] Speaker 2: Tesla stock's down two percent here today, down thirteen percent
[8:56] Speaker 2: for the year, up twenty two percent for a trailing
[8:59] Speaker 2: twelve months. You're and of course one of the storylines
[9:02] Speaker 2: out there, Anthony, is that Elion's just for for no
[9:05] Speaker 2: other reason, just for keeping everything neat and tidy, just
[9:09] Speaker 2: kind of have SpaceX acquire a roll up into SpaceX.
[9:14] Speaker 2: I know that was discussed out there in the marketplace.
[9:16] Speaker 2: Do we expect they're hearing anything from the company on that, Well,
[9:19] Speaker 2: it's unclear.
[9:19] Speaker 3: I think that something that people are expecting to happen,
[9:22] Speaker 3: it might have some industrial logic, I think, particularly because
[9:25] Speaker 3: there's different things that pretty you know, big ambitions that
[9:28] Speaker 3: Tesla has around robotics, which makes might make more sense
[9:31] Speaker 3: in a in a in a business like SpaceX, with
[9:33] Speaker 3: a business like SpaceX where there's so many of these big, big,
[9:36] Speaker 3: big projects and ambitions that they're trying to pursue, and
[9:39] Speaker 3: you know, maybe robotics in space together makes a lot
[9:41] Speaker 3: of sense. And you know, but but I think we
[9:44] Speaker 3: might be a while before we hear about that. I mean,
[9:47] Speaker 3: I think people do expect that to happen, but it's
[9:50] Speaker 3: you know, it has to make sense for you know,
[9:55] Speaker 3: based on you know, how these you know, how these
[9:57] Speaker 3: stocks are trading whatever. But I think the main argument
[10:00] Speaker 3: perhaps for that happening from I guess more I could
[10:03] Speaker 3: say from a more cynical perspective, is that it would
[10:06] Speaker 3: allow Elon musk to you know, to potentially take control
[10:10] Speaker 3: of this bigger entity, because Tesla doesn't have the dual
[10:15] Speaker 3: class structure and SpaceX does. But you know, I think
[10:19] Speaker 3: idea like that would take a while. I think the
[10:21] Speaker 3: other extraordinary thing about SpaceX, though, is that we've really
[10:24] Speaker 3: seen that Elon must get stuff done quickly and quicker
[10:27] Speaker 3: than everyone else. I mean, even the pressure releases, the filings,
[10:30] Speaker 3: the road show, the way the S one was drafted
[10:36] Speaker 3: and filed, everything happened a lot quicker than the average company,
[10:39] Speaker 3: that's for sure.
[10:40] Speaker 4: Stay with us more from Bloomberg Intelligence coming up after this.
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[11:01] Speaker 2: Let's go to George Ferguson here. He's been tasked to
[11:03] Speaker 2: lead the research efforts here, involving lots of the analysts
[11:07] Speaker 2: at Bloomberg Intelligence. Because this is a technology play, it's
[11:10] Speaker 2: an AI play, it's a rocket ship play. You gotta
[11:14] Speaker 2: have some experts. Unfortunately, Bloomberg does for all of those businesses. George,
[11:19] Speaker 2: what do you think the buyer of a SpaceX what
[11:22] Speaker 2: do you think the buyer of a SpaceX share? What
[11:25] Speaker 2: is he or she thinking here when they place that order?
[11:29] Speaker 5: Yeah, I mean, I honestly think most of them are
[11:32] Speaker 5: believers in Elon Musk, believers in his vision of the
[11:36] Speaker 5: future and his ability to get things done. Because I
[11:38] Speaker 5: think you've got to be a big believer to buy
[11:41] Speaker 5: in it at these valuations. So that's why that's where
[11:44] Speaker 5: I think. That's why I think you saw so much
[11:47] Speaker 5: of the IPO get shunted into the retail side of
[11:51] Speaker 5: the world, and because I think that's where you see
[11:54] Speaker 5: a lot of support and buy into that vision.
[11:57] Speaker 4: It feels like the SpaceX IPO is a real beast.
[12:00] Speaker 4: You look at this perlative surrounding it. It's the biggest
[12:02] Speaker 4: IPO ever, it'll be the first company to move people
[12:05] Speaker 4: to Mars, that it's going to mint that world's first trillionaire.
[12:08] Speaker 4: I almost said billionaire and I had to correct myself. Now
[12:10] Speaker 4: we have that, And this is kind of the point,
[12:12] Speaker 4: right George. I mean, this is the Elon Musk formula.
[12:15] Speaker 4: Create an entirely new category and then you know, claim
[12:18] Speaker 4: leadership and set the standard and you know, make everyone
[12:21] Speaker 4: follow in your footsteps. If that's the case, how does
[12:25] Speaker 4: someone analyze a company like this, because whatever you do,
[12:28] Speaker 4: he's going to come back with, well, it's never been
[12:30] Speaker 4: done before, so you can't you know, compare to anything.
[12:33] Speaker 5: Yeah, I mean that's why it's extremely hard. But I
[12:35] Speaker 5: think when you know, when you look at it, I
[12:37] Speaker 5: think we do understand pretty well the launch business as
[12:41] Speaker 5: it stands today. We understand the connectivity business, the satellite
[12:48] Speaker 5: business pretty well. And I think the big variable here
[12:52] Speaker 5: again is that is that AI business, and it's it's
[12:55] Speaker 5: a variable out there for a number of other companies.
[12:57] Speaker 5: But look, I think launch we saw, like you know,
[13:00] Speaker 5: some seventy six percent of the launches were primarily for Starlink.
[13:05] Speaker 5: So when we think about the demand for launch in
[13:07] Speaker 5: the future, Look, I think there'll be more constellations that
[13:11] Speaker 5: go up, but I don't think there's going to be
[13:13] Speaker 5: more than five or six LEO constellations in the next
[13:16] Speaker 5: couple decades. And they're the ones that use a lot
[13:19] Speaker 5: of satellites. You know, that's sort of ten thousand plus
[13:22] Speaker 5: kind of constellations. And I think of those five or six,
[13:25] Speaker 5: I think you're going to see two US. They're kind
[13:28] Speaker 5: of you know, Starlink, and they're probably Amazon Leo. I
[13:31] Speaker 5: think Europe might want one of their own. I'm sure
[13:33] Speaker 5: the Chinese want a couple of their own. Maybe India
[13:36] Speaker 5: gets in this game. I don't think anybody else's constellation
[13:39] Speaker 5: is going to get launched on SpaceX launches, right, so
[13:43] Speaker 5: I think it's going to be even I think Amazon
[13:46] Speaker 5: Leo is going to be launched largely on Blue Origin
[13:48] Speaker 5: rockets as they get that going. So I think we're
[13:52] Speaker 5: kind of looking at space kind of a flatish, maybe
[13:54] Speaker 5: a slow growth kind of business as they do government
[13:58] Speaker 5: work and things like that. The connectivity business, you know,
[14:01] Speaker 5: that's all about that's you know, that's data, broadband data,
[14:05] Speaker 5: that's direct to sell communications. We kind of understand that too.
[14:10] Speaker 5: We have terrestrial providers if you're in a big population center.
[14:14] Speaker 5: They're going to do it better than SpaceX is going
[14:16] Speaker 5: to do given latency of going to a satellite, problems
[14:19] Speaker 5: of being in buildings. But they're very important areas of
[14:22] Speaker 5: the world that need that connectivity to a satellite to
[14:25] Speaker 5: stay on the you know, on the web and connected,
[14:30] Speaker 5: and that will get better over time. But I think
[14:32] Speaker 5: that's you know, maybe it's a what we're seeing sort
[14:35] Speaker 5: of twenties ish percent growth in the last couple of years,
[14:38] Speaker 5: but some of the metrics are coming down. On the
[14:40] Speaker 5: amount each subscriber spends, it's decently profitable, it's not wildly profitable.
[14:46] Speaker 5: So to me, everything shifts to AI, right, it's a
[14:51] Speaker 5: big bet on data centers, putting them into the sky,
[14:55] Speaker 5: putting them into orbit. It could where you probably be
[14:58] Speaker 5: able to do it cheaper, cool at, cheaper powered, easier,
[15:03] Speaker 5: and then you know, we'll stream data up to satellites
[15:06] Speaker 5: and GROC will help us figure out what to do
[15:08] Speaker 5: in the future. And that's kind of to me, the
[15:11] Speaker 5: big big vision.
[15:12] Speaker 2: Yeah, I'm looking at just kind of where the revenue
[15:14] Speaker 2: comes from. George just on a trailing twelve month basis,
[15:16] Speaker 2: you know, round numbers eleven billion from the connectivity business,
[15:20] Speaker 2: four billion from the space business, and then at the
[15:23] Speaker 2: bottoms AI at three billion of revenue. But when you
[15:25] Speaker 2: think about a company that's going to be valued at
[15:28] Speaker 2: at least ninety five times revenue, it seems like the
[15:31] Speaker 2: buyer today is saying, I'm putting my money on this
[15:34] Speaker 2: AI thing because I think that's going to be something
[15:36] Speaker 2: just astronomical. I guess it's the AI play that kind
[15:40] Speaker 2: of gets you to where you need to go for
[15:42] Speaker 2: if you're a long term investor.
[15:44] Speaker 5: Yeah, I think if you look, you know, if you
[15:47] Speaker 5: look at some of the recent deals cut with Anthropic, right,
[15:49] Speaker 5: so what that's a billion and a quarter a month.
[15:54] Speaker 5: You know, I guess as long as they keep signing
[15:56] Speaker 5: that agreement, you're going to see that AI revenue jump
[16:00] Speaker 5: up pretty dramatically here over the over the next year
[16:04] Speaker 5: and years. Right. So, I think when we look at
[16:06] Speaker 5: sort of what we think is going to be at
[16:07] Speaker 5: the end of twenty twenty six, we think it's going
[16:10] Speaker 5: to be a fourteen billion connectivity business and a fourteen
[16:13] Speaker 5: billion rev AI business. And I think one of the
[16:17] Speaker 5: interesting things we saw was, right is SpaceX built Colossus
[16:21] Speaker 5: one and Colossus two. The two big data centers down Memphis,
[16:25] Speaker 5: Tennessee area. They did it in existing buildings so they
[16:28] Speaker 5: could get it up and running very quickly. He you know,
[16:32] Speaker 5: it's sort of in typical Elon muskway. He's looking to
[16:35] Speaker 5: drive down the cost quickly. It's just, you know, that's
[16:38] Speaker 5: smart for any business person put a lot of capacity online.
[16:42] Speaker 5: Now he has the opportunity to sell some of that
[16:44] Speaker 5: to the anthropic. I think Google's in there too, so
[16:47] Speaker 5: you're going to see that AI you know, revenue line
[16:50] Speaker 5: drive up. But they spend a lot of money to
[16:53] Speaker 5: keep that going, right. I think they're going to consume
[16:56] Speaker 5: even more than the revenue they bring in. And there's
[16:59] Speaker 5: like four or five six billion dollar deficits in an
[17:01] Speaker 5: operating margin, sorry, operating profit for that business. So you've
[17:05] Speaker 5: got to find a way to power all that investment
[17:08] Speaker 5: you need. This IPO is about we're going to invest
[17:11] Speaker 5: a lot of that money into data centers, and we'll
[17:14] Speaker 5: invest some of it into Starship because we think long
[17:17] Speaker 5: term is going to be easier to make those data
[17:19] Speaker 5: centers in space. It'll be cheaper, and so that's where
[17:22] Speaker 5: a lot of this money goes. That's the best.
[17:24] Speaker 4: Stay with us more from Bloomberg Intelligence coming up after this.
[17:31] Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
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[17:45] Speaker 2: Well, let's continue to talk about space. Why not? Ross Helminson,
[17:48] Speaker 2: chief operating officer for Space Network Joints US here in
[17:52] Speaker 2: our studio, Russell. One of the things that I think
[17:54] Speaker 2: got investors attention on this road show is I try
[17:56] Speaker 2: to think about the opportunities for SpaceX and for the
[18:00] Speaker 2: industries the company and elon identifying a twenty nine trillion
[18:04] Speaker 2: dollars total addressable market, do we have any idea where
[18:09] Speaker 2: that number really comes from?
[18:11] Speaker 6: Well, thanks for having me on again. It's a huge number,
[18:14] Speaker 6: it really is. I don't know if m could really
[18:17] Speaker 6: add up the numbers. I'm not quite sure exactly where
[18:19] Speaker 6: that comes from. But I think the kind of the
[18:21] Speaker 6: thesis is what SpaceX is eventually going to become. It
[18:25] Speaker 6: really wants to be the infrastructure that's running all industry
[18:28] Speaker 6: at all markets. So if you think about, you know,
[18:30] Speaker 6: the Internet in the nineties, you know they're really trying
[18:33] Speaker 6: to create the backbone for AI infrastructure, infrastructure for this century.
[18:39] Speaker 6: So what they're looking to do is put a lot
[18:41] Speaker 6: of AI infrastructure in place, lots of chips, lots of robotics,
[18:45] Speaker 6: not just for their own use for SpaceX and not
[18:48] Speaker 6: just for Tesla, but they're looking to do that for
[18:51] Speaker 6: all industries. So if you have a long term view
[18:55] Speaker 6: on AI chips and infrastructure and compute, then the argument
[19:01] Speaker 6: is that all industries would benefit from that.
[19:03] Speaker 4: Of course, of course SpaceX has become a government contractor.
[19:07] Speaker 4: It's done a lot of the work that NASA used
[19:09] Speaker 4: to do. So one of the addressable markets is the
[19:12] Speaker 4: US government and that's a big customer. How can we
[19:15] Speaker 4: quantify just how big of an opportunity that would be
[19:18] Speaker 4: going forward?
[19:19] Speaker 6: So I think it is pretty big. I mean, if
[19:21] Speaker 6: you think about the relationship with NASA as well, you know,
[19:23] Speaker 6: NASA's focus is shifting to more exploration, but from a
[19:27] Speaker 6: government standpoint, it's definitely been more on the national defense
[19:30] Speaker 6: gold and Golden Dome type strategy as long as you know,
[19:35] Speaker 6: you know, the US particularly wants to be you know,
[19:37] Speaker 6: the dominant force and has recognized through Space Force that
[19:42] Speaker 6: much of the military will be guided through satellites and
[19:45] Speaker 6: that technology. I think it's basically our prime for the
[19:49] Speaker 6: US government.
[19:51] Speaker 2: So how do you guys think about it? I mean,
[19:54] Speaker 2: how does this relate to your company and connect what
[19:56] Speaker 2: you guys are doing.
[19:57] Speaker 6: Yeah, so we're really focused on the private side. So
[20:00] Speaker 6: we're helping space tech companies who are not yet public
[20:04] Speaker 6: commercial arted so raise capital, find customers folks, and revenue.
[20:08] Speaker 6: And the thing that's really important there is with what
[20:10] Speaker 6: the SpaceX is doing is it is going to generate
[20:13] Speaker 6: a love liquidity in the marketplace. So as people you
[20:16] Speaker 6: will spin out from SpaceX going to get their own thing,
[20:20] Speaker 6: it's drawing attention from private equity and venture capital into
[20:23] Speaker 6: the market. That's going to draw a lot of capital in.
[20:26] Speaker 6: So from our standpoint, it's going to increase this focus
[20:29] Speaker 6: on the opportunity. But our argument is though, that it
[20:33] Speaker 6: has to be on the basis that there's real customers
[20:37] Speaker 6: for those space technologies. And our thesis is that aside
[20:41] Speaker 6: from governments you know and NASA who doing space exploration,
[20:45] Speaker 6: that's actually in non space industries, so financial markets and
[20:50] Speaker 6: you know, global logistics, agriculture, pharmaceutical that's the market there,
[20:56] Speaker 6: and that remains an opportunity for a lot of these
[20:59] Speaker 6: innovation native companies. I think SpaceX is more of an
[21:03] Speaker 6: infrastructure play for those other markets.
[21:06] Speaker 4: It's an infrastructure play for now. It could also become
[21:09] Speaker 4: an electric vehicle companies soon as well, or that'll be
[21:12] Speaker 4: kind of brought into its its orbit because there's a
[21:15] Speaker 4: lot of talk about how Elon Musk mighte combine SpaceX
[21:18] Speaker 4: with Tesla. That just becomes another kind of company than
[21:23] Speaker 4: and not really comparable to what you do.
[21:26] Speaker 6: Yes, I think there's a couple of things there, you know,
[21:30] Speaker 6: with from SpaceX and Tesla relationship. You know, one of
[21:33] Speaker 6: the ideas originally that he wants to get into EVS
[21:35] Speaker 6: is ultimately he wants to be able to like have
[21:37] Speaker 6: vehicles up in Mars. You know, for that you need
[21:40] Speaker 6: electric vehicles and power. So that's part of his broad
[21:43] Speaker 6: you know, interplanetary you know species strategy there right, But
[21:48] Speaker 6: when it comes back to you know, what's what's back
[21:50] Speaker 6: on Earth, it really is about building infrastructure and providing
[21:55] Speaker 6: things that are used or created for space but used
[21:58] Speaker 6: back down on Earth. And I think there's enough of
[22:01] Speaker 6: an alternate market to SpaceX to allow those things to happen.
[22:05] Speaker 6: So an example would be the International Space Station is
[22:09] Speaker 6: coming down in a couple of years, and there's going
[22:11] Speaker 6: to be new commercial space stations going up, which is
[22:13] Speaker 6: going to allow drug research and other types of research
[22:17] Speaker 6: and in orbit manufacturing to happen. That is going to
[22:21] Speaker 6: be core in other parts of the infrastructure that the
[22:24] Speaker 6: SpaceX market space X will will not serve.
[22:29] Speaker 2: How's the capital raising out there other than SpaceX or
[22:32] Speaker 2: companies that want to do space based businesses.
[22:35] Speaker 6: It's actually been very healthy over the last number of years.
[22:37] Speaker 6: I mean, you could argue it's been quite healthy over
[22:39] Speaker 6: the last fifteen years, but the last couple of years
[22:41] Speaker 6: there's definitely been an inflow of private capital. You know,
[22:44] Speaker 6: it's not for things that are like rockets and hardware
[22:48] Speaker 6: and satellites. It's traditionally not been a venture model, but
[22:51] Speaker 6: I think they're starting to realize that this is a
[22:54] Speaker 6: play towards more venturel like businesses that can run on
[22:57] Speaker 6: the infrastructure.
[22:59] Speaker 4: He talked about how this will create a liquidity event,
[23:01] Speaker 4: this IPO, it's going to make a lot of people rich.
[23:03] Speaker 4: We talk a lot about the SpaceX current employees and
[23:06] Speaker 4: former employees. If they do become very wealthy and decide
[23:09] Speaker 4: to step away and stop working. They may go off
[23:12] Speaker 4: and start their own company as well. This creates this
[23:15] Speaker 4: large ecosystem. Do you have any sense of timing around
[23:19] Speaker 4: how this plays out.
[23:23] Speaker 6: That's a hard one because I'm sure there's gonna be
[23:25] Speaker 6: a lot of lock ups in there and a lot
[23:26] Speaker 6: of people looking to fulfill the SpaceX mission. But I
[23:30] Speaker 6: think certainly over the next couple of years you're going
[23:32] Speaker 6: to see a lot of that activity happening.
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