Elon Musk is world's richest person and SpaceX's two trillion dollar orbital AI bet

**SPEAKER_1** (0:00)
So, you're saying with Hilton Honors, I can use points for a free night stay anywhere?

**SPEAKER_2** (0:04)
Anywhere.

**SPEAKER_1** (0:06)
What about fancy places like the Canopy in Paris?

**SPEAKER_2** (0:08)
Yeah, Hilton Honors, baby.

**SPEAKER_1** (0:10)
Or relaxing sanctuaries like the Conrad and Tulum?

**SPEAKER_3** (0:13)
Hilton Honors, baby.

**SPEAKER_1** (0:15)
What about the five-star Waldorf Astoria in the Maldives? Are you going to do this for all 9,000 properties?

**SPEAKER_4** (0:22)
When you want points that can take you anywhere, anytime, it matters where you stay. Hilton for the stay.

**SPEAKER_5** (0:29)
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**SPEAKER_2** (1:03)
Thanks for watching.

**SPEAKER_6** (1:15)
It's a podcast that is about the world's biggest and most successful company. It's a podcast about the world's biggest and most successful company.

**SPEAKER_2** (1:23)
It's a podcast about the world's biggest and most successful company. It's a podcast about the world's biggest and most successful company. Personal net worth to 1.1 trillion.

**SPEAKER_6** (1:39)
Yeah, and investors aren't just buying a rocket company with that kind of capital. I mean, they are buying a conglomerate that absorbed an artificial intelligence lab, a satellite telecom network, and a social media platform, all trading under the chicker SPCX.

**SPEAKER_2** (1:54)
Right, it's a massive umbrella now.

**SPEAKER_6** (1:56)
Exactly. So the real question for you listening is how a company posting a multi-billion dollar net loss actually manages to rewrite the rules of global finance and just mechanically force passive index funds to buy its stock?

**SPEAKER_2** (2:08)
Well, a $1.1 trillion net worth, it's just hard to conceptualize. I mean, human brains are not really wired to comprehend 13-digit math naturally. It just sounds like a fake number.

**SPEAKER_6** (2:18)
It really does. It becomes completely abstract at that level.

**SPEAKER_2** (2:21)
Yeah. So we should actually look at the machinery printing that number. Because if we look at the mechanics of how that figure was reached, it is driven heavily by the valuation of this specific public offering. The founder holds an approximate 42% equity stake in SPCX.
So at the offering valuation, that single stake accounts for over $700 billion. Just sit right there.

**SPEAKER_6** (2:45)
That is just the aerospace and telecom side of the ledger. You also have to factor in the holdings in the public automaker, Tesla.

**SPEAKER_2** (2:53)
Oh, absolutely. The Tesla holdings contribute significantly, especially after the legal restoration of that huge options package.

**SPEAKER_6** (3:01)
Right, because the courts reinstated the 2018 compensation plan, which added an enormous amount of equity value right back to his personal balance sheet.

**SPEAKER_2** (3:08)
Exactly. Then you add in the private ventures, like the brain computer interface company, Neuralink, and the tunneling enterprise, the Boring Company. You put all those equity stakes together, and you finally cross that trillion dollar threshold.

**SPEAKER_6** (3:20)
The fragility of that wealth structure is really the first thing that sands out to me, though.
None of it is held in cash. It is less than a fraction of a percent. The forging is entirely equity, which means it is completely dependent on market sentiment and the continued belief in the valuation multiplier of these specific companies. If the market stops believing in the multiplier, the net worth vanishes.

**SPEAKER_2** (3:42)
Right. To understand that multiplier, we really have to look at the internal financials of SpaceX because the public filing revealed it to be three very distinct businesses operating under one roof. First, you have the connectivity segment, Starlink.

**SPEAKER_6** (3:57)
Right, the satellite internet.

**SPEAKER_2** (3:58)
And this is the cash engine. It pulls in over $11 billion in revenue and actually generates strong operating profit. They have millions of subscribers globally paying monthly fees for satellite internet.

**SPEAKER_6** (4:11)
It essentially acts like a global telecommunications utility. I mean, that segment alone prints consistent profit on an operating basis because you have a captive audience paying a recurring subscription fee for access to a closed network.

**SPEAKER_2** (4:24)
Yeah, it's a very traditional telecom model in that sense. Then you have the space segment, which includes the Falcon Rockets and the Starship program.
Now, this is a heavy research and development cost center.

**SPEAKER_7** (4:35)
It's extremely heavy.

**SPEAKER_2** (4:36)
Right, because while the established Falcon Rockets generate revenue through government and commercial launch contracts, the development of the next generation.