How AI Spending Is Fueling the Economy Overall

**Telis Demos** (0:00)
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**Miriam Gottfried** (0:01)
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**SPEAKER_3** (0:15)
Download the realtor.com app, cause you're nearly home.

**Telis Demos** (0:18)
Make it real with realtor.com. Pro's number one most trusted app based on August 2025 proprietary survey.

**Ohsung Kwon** (0:24)
Over 500,000 new listings every month based on average new for sale and rental listings. From July 2024 to June 2025

**Miriam Gottfried** (0:33)
Hi Telis.

**Telis Demos** (0:33)
Hi Miriam.

**Miriam Gottfried** (0:34)
Good to see you. Good to be back from two weeks of vacation.

**Telis Demos** (0:38)
Welcome back. Wasn't the same without you.

**Miriam Gottfried** (0:39)
Well, you persevered. The last two episodes were great. I listened to them. But we have a really interesting conversation today.
We're talking about tariff refunds.

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**Telis Demos** (1:20)
Remember those?

**Miriam Gottfried** (1:21)
Yeah. Somehow companies are getting this money back, which we're going to talk about later. We also go into a lot of other things, including the consumer, the Fed, AI, employment. But first, we have to talk about something that happened this past week, and that is SpaceX reported its first quarterly earnings report.

**Telis Demos** (1:39)
Yep. It was SpaceX's first earnings report since its IPO. SpaceX's stock has been down. The question was whether or not a good earnings report might kind of give it a little liftoff, should we say.
But it did not. It did not. The stock was down double digits in the early going, as we're talking now, after its earnings report. And I think the market was focused on the same thing it's been focused on with a lot of other hyperscalers, which is it's spending a ton. There's no end in sight to its spending. And what's the payoff?

**Miriam Gottfried** (2:13)
Right. And I think what SpaceX is specifically spending on is its next generation of rockets, which are going to be the key to being able to launch data centers into space. And that is a big part of its valuation, as we've discussed on previous episodes.

**Telis Demos** (2:28)
Yeah, it really seems like the market is starting to differentiate between companies in the AI space that are spending money and also seeing those benefits in their core business. Microsoft stock, for example, reacted very positively to its earnings report for that reason because it has a cloud business that sells the computing services that go into AI.
SpaceX kind of seems like it's falling into the meta camp, which is that, yes, obviously, there's enormous opportunity for SpaceX to be a player in AI in one form or another, whether that's through data centers in space, whether that's through Grok and monetizing that through the ex-AI, former Twitter kind of ecosystem. And the same thing with meta. AI could be useful to its advertising business, to the enjoyment that people have in social media.

**Miriam Gottfried** (3:15)
But it's just not really clear how yet.

**Telis Demos** (3:17)
It's just not clear how, and so investors are kind of like, why are we spending all this money to get there?

**Miriam Gottfried** (3:23)
With Microsoft, there's a direct payoff. So, I mean, I think that makes sense, and investors are definitely willing to reward that, where they can see the ROI. And we saw that with a lot of the hyperscaler earnings. A lot of them actually reported really good earnings, which we'll talk about later with Ohsung Kwon.

**Telis Demos** (3:39)
Yeah, and the timeframe for these things is not soon, right? Like Moffat and Aethensen analysts were writing about SpaceX, and they were talking about that it would take 143 launches of the Starship rocket to put just a gigawatt of computing, I always want to say gigawatt, back to the future, a gigawatt of computing power into space. And that would be like what a single large AI data center does. So, like big, big, big future potential, but the payoff is just, it's a long-term story.