SpaceX IPO and orbital AI data centers

**SPEAKER_1** (0:00)
No one goes to Hanks for his spreadsheets. They go for a darn good pizza. Lately though, the shop's been quiet. So Hanks decides to bring back the $1 slice. He asks Copilot in Microsoft Excel to look at his sales and costs, help him see if he can afford it. Copilot shows Hanks where the money's going, and which little extras make the dollar slice work. Now Hanks has a line out the door. Hanks makes the pizza, Copilot handles the spreadsheets. Learn more at m365copilot.com.

**SPEAKER_2** (0:31)
Your summer starts now with Memorial Day Deals at The Home Depot. It's time to fire up summer cookouts with the NexGrill 4-Burner Gas Grill on special buy for only $199.
And entertain all season with the Hampton Bay West Grove 7-Piece Outdoor Dining Set for only $499. This Memorial Day get low prices guaranteed at The Home Depot. While supplies last, pricing valid May 14th through May 27th. US-only exclusion supplies see homedepot.com/pricematch for details.

**SPEAKER_3** (1:00)
LinkedIn is pretty amazing at helping you grow your small business. We cannot stop your new clients from emailing you at 3 AM.
We can help you sell, market and hire in one place. We cannot help you be in three places at once. And while we can't help you organize your calendar, LinkedIn can help you land more clients so you have a calendar to organize. Grow your small business on LinkedIn. Learn more at linkedin.com/smallbusiness.

**SPEAKER_4** (1:30)
SpaceX is putting together an underwriting syndicate of, I think it's 21 banks now, including Morgan Stanley and Goldman Sachs. They're looking to raise up to $75 billion in an initial public offering, targeting evaluation approaching $2 trillion.

**SPEAKER_5** (1:47)
$2 trillion. I mean, $75 billion for the raise just completely swallows the previous record holders. You look at Saudi Aramco. They raised $29 billion. Alibaba was $25.
The numbers are almost abstract at this level.

**SPEAKER_4** (2:00)
Right. They really are.

**SPEAKER_5** (2:01)
And you also have this operational reality that they just absorbed XAI in an all-stock merger. So, you know, when an aerospace manufacturer absorbs an artificial intelligence startup, how does the market actually price that new entity?

**SPEAKER_4** (2:14)
Well, you have to look at the combined revenue engines driving it. The core financials right now are built heavily on Starlink.

**SPEAKER_5** (2:20)
Okay.

**SPEAKER_4** (2:21)
They have 10 million active users, which generates over $20 billion in expected revenue. And then you have the launch business utilizing the reusable Falcon and Starship rockets.

**SPEAKER_5** (2:32)
Which is really the infrastructure play.

**SPEAKER_4** (2:34)
Exactly. They are following this cost reduction trajectory mapped out by Wright's Law, pushing payload costs from thousands of dollars down to less than $100 per kilogram.

**SPEAKER_5** (2:44)
And Wright's Law, just for context, dictates that for every cumulative doubling of units produced, the cost falls by a constant percentage. It's a concept rooted in manufacturing efficiency. You build cars on an assembly line, they get cheaper over time.
Applying that principle to rocket reusability changes the economics of reaching low earth orbit entirely.

**SPEAKER_4** (3:06)
Because you aren't throwing the rocket away anymore.

**SPEAKER_5** (3:08)
Yeah, the traditional model involved building a bespoke rocket and just throwing it into the ocean after a single use, which kept access strictly limited to national governments and massive telecommunications conglomerates. Reusability completely removes that barrier.

**SPEAKER_4** (3:24)
And that specific reduction in launch costs is the foundation for the XAI merger and the subsequent plan to build orbital artificial intelligence data centers. They are connecting this directly to the Texas Terafab chip plant joint venture with Tesla.
Basically, the plan is to manufacture specialized semiconductors in Texas, put them in servers, and launch those servers into orbit. You said this place was steps from the water.

**SPEAKER_6** (3:50)
We just haven't found the steps yet.

**SPEAKER_5** (3:53)
How much did we save?

**SPEAKER_7** (3:55)
Enough. Enough to get lost?

**SPEAKER_6** (3:59)
Or you could book a stay with Hilton.

**SPEAKER_8** (4:02)
Welcome to your ocean front room.

**SPEAKER_4** (4:03)
Just steps from the water.

**SPEAKER_6** (4:05)
The Hilton sale is on now. Book on hilton.com or the Hilton app and save up to 20% to get the stay you expected. When you want savings, not surprises, it matters where you stay. Hilton. For this day.

**SPEAKER_9** (4:18)
Whatever your thing, it could be anything. Canva helps you make that thing a thing. Canva is a simple online tool thing. It's a way to design with our magic AI tool things.
You can social media your thing, generate images or videos of your thing, make decks for presentations to show your thing. Whatever needs to be done for your thing, Canva can make it an even better and bigger thing. Canva. The thing that makes anything a thing.