Cathie Wood on Tesla-SpaceX Merger, $1M Bitcoin, More AIs Than Humans | EP #296 | Moonshots Live

Peter Diamandis (0:05)

Singularity is here.

Emad Mostaque (0:06)

Yes.

Peter Diamandis (0:07)

Oh my God, how lucky are we to be alive now during the Singularity? I mean, I know you guys know this. I mean, we feel the speed up, right? Every day, I wake up and check my X channels, which I've curated. I check the conversations we have in our WhatsApp group and the Moonshot mates, like, what just happened? What just happened? It's mind-blowing.

It's absolutely mind-blowing.

So, we have two incredible leaders on stage, and I'm going to kick off the first question to you, Cathie. And thank you, Cathie, for your support of this event and of the Future Vision Xprize. So proud of what you and Lisa Dodd have done to support this.

Cathie Wood (0:50)

Yes, and thank you. Lisa's here. So, thank you, Lisa, for all you've done for this great event.

Peter Diamandis (0:56)

So, your team has said the Tesla and SpaceX merger could be announced this year. I agree.

You know, rocket satellites, AI, EVs, robotaxes, humanoid robots, energy, all under one roof. And so the question is, what is Elon, in your opinion, actually trying to achieve long term through this merger? Do you think he's going to hit any particular roadblocks? And I'm curious, you know, does SpaceX AI or SpaceX need to reach a certain valuation before he pulls the trigger on that? So the dilution isn't too much.

Cathie Wood (1:36)

Yes. So we do think it's going to happen. What is his ultimate goal? Well, he tells us all the time, it's Mars. He's just creating a number of stops along the way in the form of a global connectivity, broadband connectivity business.

Peter Diamandis (1:54)

And the Dyson Swarm.

Cathie Wood (1:56)

Yes, really unbelievable how profitable and how big it is already from a revenue generation point of view.

And this neocloud business that he, you know, basically was a giant pivot in terms of XAI, so neoclouds. But Elon believes that the leader, the AI leader, in terms of frontier models is going to be the company with the most computing capacity and at the cheapest cost. And with Orbital Data Centers, he thinks he will be that company. So he's really going to go after, you know, the open AIs and the anthropics of the world. Very determined.

Peter Diamandis (2:46)

SpaceX is my largest holding.

Is that your largest holding? What's atop your stack?

Cathie Wood (2:53)

Tesla and SpaceX. And we do believe they will be combined.

Peter Diamandis (2:57)

So, yes.

Do you think, you know, so he has a Chinese business with Tesla, right? And he's in the Defense Department. How does he handle that?

Cathie Wood (3:10)

Yeah, as one of the roadblocks out there. You know, it's very interesting to see him sitting at the table with President Trump and Xi Jinping. And we know that May Musk is adored in China. So, he's working all angles here. And there's even, there has even been talk that he's going to be able to develop a robotaxi system in China. So, it's very interesting. Many people would say that's the biggest stumbling block, given our defense posture and given how this administration has, you know, basically portrayed the Chinese as our biggest potential enemy. Keep your enemies close is what I think this week is all about. So, you know, I can see, honestly, I have, now I am an optimistic person, but we believe that the productivity gains coming out of this AI and just generalized technology revolution are going to be so enormous that we could have a win-win-win here with China and the US.

China needs to develop a consumer economy, and it can turn this productivity gain into increased compensation to really develop the consumer.

We need to be maybe more aggressive in competing against China. We can use some of it to cut prices. So I think, and that would lower inflation and take away a lot of the fears out there from a policy point of view. So I think that's what Trump and Musk together are working on.

Peter Diamandis (4:57)

The Fed announced something like a 4.7% GDP growth in the last quarter, which was like double the quarter before. When I interviewed Elon with Dave Blunden last December, it aired beginning of January, he said, you know, he could imagine triple digit growth within this decade of the GDP, which is...

Cathie Wood (5:18)

Is that cumulative or...

Peter Diamandis (5:20)

Per year.

Cathie Wood (5:22)

Yes.

I think I tuned in to that part of it and it was like, well, so our number is 7 to 8%. We're accelerating in the next five years to 7 to 8% real GDP growth. I have heard him say 20, 30%. I had not heard him say triple digits and I wasn't sure if it was cumulative that he was talking about.