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You have invested in artificial intelligence. Maybe you have pilots or even proofs of concepts that show real promise. The next opportunity is scaling that success across the business. At EY Consulting, we help organizations redesign how work gets done so innovation can move beyond the nascent stage. By addressing architecture, operating models and governance, we help AI deliver real lasting value at scale. When AI fits how you actually work, that is EY Consulting introducing B of A Rewards. A new loyalty program with rewards for every ambition. From cash back deals on brands you know and love to a credit card rewards bonus. From fueling up to rewards that fuel your goals. It all starts with a Bank of America checking account and grows from there. What would you like the power to do? Bank of America Open or enroll your account@bankofamerica.com B of A Rewards bank of America America Corporation. All rights reserved. The thing about AI for business, it may not automatically fit the way your business works. At IBM we've seen this firsthand. But by embedding AI across hr, IT and procurement processes, we've reduced costs by millions, slashed repetitive tasks and freed thousands of hours for strategic work. Now we're helping companies get smarter by putting AI where it actually pays off. Deep in the work that moves the business. Let's create smarter business. IBM, Bloomberg Audio Studios Podcasts Radio news.
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Bloomberg Tech is live from coast to
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coast with Caroline Hyde in New York
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and Ed Ludlow in San Francisco.
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This is Bloomberg Tech. I'm Ed Ludlow.
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And I'm Caroline Hyde. And today is the day Space X his big debut in the public markets. The company is set to begin trading any moment now.
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We'll break down what that means for investors and for the space economy and for the IPO pipeline. Elon Musk speaking at Starbase Texas. Just a couple of hours ago, I
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gave Space X less than a 10% chance of succeeding at all, to be clear. In fact, I told people this, I said look, we're probably going to fail, but you know, should give it a try because if we don't, if there's not a new company that enters space, we will never be a truly space faring civilization.
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And we check in on these markets as the latest indicated price of SpaceX shares is $162 each. The IPO price $134. We look at the NASDAQ 100, add
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what a rocket ride that's been.
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Yeah, and look, this is about geopolitics. This is about hope on some sort of deal. And are you with Iran and the United States? But thus far we are completely focused on the impact of this ipo?
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Yeah, look there is a lot of evidence that whatever asset class cap people have trying to be positioned to play this IPO in the moment when we start trading imminently. Starting trading indicated right now to open $162 each. We price the IPO 135. But loads of disappointed people on the institutional side and the retail side.
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Yeah. Who didn't get allocations. But if you've got an allocation you're looking at maybe a 20% pop. If it opens at that level your higher and and is down at the Nasdaq for us. What are you hearing? What are you seeing?
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Well the fanfare from the opening bell is over but we still have legions of Elon Musk fans outside and some movement behind me on the NASDAQ floor. But as you guys were saying we've gotten a series of indications throughout the morning and they've continued to edge lower as traders work through the price discovery process. The latest indication is $162 a share down from earlier levels that were around 175. Even so that is above the 135 IPO price and does IMP evaluation of some $2.1 trillion. Meaning Space X would still rank among the most valuable companies in the world from its very first trade.
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162 a share 20% from the IPO price. Exactly. Implying a market value roughly $2.1 trillion. Bloomberg's Johann and back throughout the hour at the Nasdaq. Let's talk about space X. Christian Garrett 137 Ventures managing partner Space X was one of the First Investments that 137 Ventures made net net in the end stake worth billions and billions of dollars. And you've been with the company as its story changed started with reusability and rockets. It's a future of AI in the enterprise. I just ask you Christian to reflect on what this IPO represents to you and the firm.
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Well you know first off we're extremely excited to for the ipo. It's a great milestone. But you know as long term investors this is just the beginning of the journey for the company.
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Say that
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look, I think you know the company like you mentioned has gone through this evolution and many things have grown in the vision of Scope but many things have stayed the exact same. The company has always had the mission to make humanity multi planetary to expand consciousness across the universe. And they knew that they had to find incredible business models where they had advantages in order to fund that vision. They started by really bringing Launch back to America which in and of itself is an incredible thing to be a part of. They were the first company to build a reusable rocket, a partially usable rocket, which dramatically dropped cost for launch. That advantage gave them the infrastructure to build Starlink, which is the world's largest constellation. And from there you're seeing that they have the advantage to build infrastructure terrestrially and hopefully in orbit for data centers.
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Elon Musk we started the show saying just a 10% chance survival. Was that what you thought when you first were getting under the skin of this company at 137? Did you have bigger bets than that in terms of think it'd be more than 10% probability? And where do you see your holdings going longer term?
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I think as investors you always can have some revisionist history sometimes. And so I'm sure we were always extremely confident in the company. But look, I mean, I think there's just been multiple points of inflection for the business. And so I think there is high confidence that NASA really, we needed launch capacity to come back to the States. So it was an understandable bet back in the day when my two partners were at Founders Fund in the one of the early investors in the company, when we continue to invest when 1007 Ventures was formed, 2010, 2011 onward, and I've invested in the company every single year for 16 years, I think the bet still remained the same, which was, you know, fundamentally after they nailed launch, after they were usability, you then were making a future bet on Starlink, which was unclear, but the technology was proven and in just a couple of years that business went from $0 in revenue to over $11 billion in revenue and the largest constellation. I think you're seeing a similar inflection point now where you're betting on starship, you're betting on data centers in space, and you have early data and indications that many investors, including ourselves, are extremely confident in. And I think other people will see that same execution that SpaceX and historically they're going to continue to do in the future.
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They're doing this ipo, they need capital. That's why, you know, he could, in the end he got there when Musk was speaking to Jamie Dimon. Well, we need capital. How do you expect them to deploy? That is a, is a completely separate question. Right. The thing that's missing in the prospectus is where are the Capex plans? What do you see happening in the first instance?
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Christian I think the company has been pretty consistent publicly in talking about some of their plans. You know, Brett Johnson just did A great interview with a friend of ours of the firm, Gavin Baker. Gavin Baker, which was great. And they talked a lot about one, the infrastructure to build out data centers I think terrestrially. And you see with Xi, you know, a lot of the capex investments for that young company over the last couple of years that investors have been trying to understand and that obviously data centers in space is going to be a huge capex investment. They're continuing to invest in starship development but for the most part I would say it's going to be heavily focused on data centers within the XI business
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because that almost was what shocked everyone, right? In the S1, the total addressable market, more than $28 trillion was like enterprise application. It was, I was really where a lot of this is coming from.
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Yeah, absolutely. I think the company really sees that business line being a massive opportunity and quite frankly if you look at their advantages going after that it's fundamentally driven by cost structure. Right? They have infrastructure, they have a platform, they can deliver capabilities at a lower cost and get to scale that other people can't. And I think one of the great touch points for that is if you look at their Colossus 1 and 2 data centers and you look at the business that they just launched on the compute side, they're giving you signal that terrestrially this could be a massive business. So in orbit it'll be a much, much, much larger one. They're on a $26 billion run rate for their terrestrial compute business and those are just two deals within a month. Imagine where this business is going to be in 10 years.
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I think there are questions from a lot of investors. Will hold on. Why aren't you using that capacity for your own models either training or on inference? And we will get to that. Christian Garrett, partner at 137 stays with us. One quick note, look at shares of Rocket Lab actually down now about 6%. That was selling everywhere right when we started to get those indications of Space X. However it was up in the pre market. NASDAQ announced it will be one of the five companies joining the NASDAQ 100 index on June 22nd. And obviously highly analogous with Space X but the distant small number two launch provider in the United States right now.
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And now we go back to the number one because coming up SpaceX is, is launching onto the public markets but its business is about far more than rockets. And we're just talking, we're going to delve evermore into its AI growth story. This is Bloomberg Tech.
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You have invested in artificial Intelligence, maybe you have pilots or even proofs of concepts that show real promise. The next opportunity is scaling that success across the business. At EY Consulting, we help organizations redesign how work gets done so innovation can move beyond the nascent stage. By addressing architecture, operating models and governance, we help AI deliver real lasting value at scale. When AI fits how you actually work, that is EY Consulting. The thing about AI for business, it may not automatically fit the way your business works. At IBM, we've seen this firsthand. But by embedding AI across hr, IT and procurement processes, we've reduced costs by millions, slashed repetitive tasks, and freed thousands of hours for strategic work. Now we're helping companies get smarter by putting AI where it actually pays off, deep in the work that moves the business. Let's create smarter business. IBM. Ryan Reynolds here from Mint Mobile with a message for everyone Paying big wireless way too much. Please, for the love of everything good in this, stop With Mint. You can get premium wireless for just $15 a month. Of course, if you enjoy overpaying, no judgments. But that's weird. Okay, one judgment anyway. Give it a try. @mintmobile.com Switch upfront payment of 45 for
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3 month plan equivalent to $15 per month required intro rate first 3 months
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only, then full price plan options available,
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taxes and fees extra.
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See full terms@mint mobile.com welcome back. All in on this record Space X IPO which we understand the shares are indicated to open at $160 per share. That is 19% above the IPO price. Manip Singh is our global head of tech research, Bloomberg Intelligence and he joins us along with Christian Garrett from 137 Ventures who has been investing round after round in Space X. From the venture side, Mandy, you're out with new research stating that X I could soon dominate Space X's sales by the end of the year. This is an AI company. Walk us through your thinking.
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Yeah, I think the two recent deals, Anthropic and Google, I mean they add almost $26 billion in recurring revenue and we know cloud is a very high stable margin business and so this is no different. You know, they have become a new cloud AI infrastructure player overnight and no one really saw this coming because the focus was clearly on the space launch business and the Starlink business business. But I think the recurring revenue gives them a lot of stability in terms of driving that top line growth and they're showing a lot of capex efficiency. That's the other aspect about what they have done here.
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So team I, there's a Discrepancy here. Right. So Christian and the team at 137 started investing when this was about reusability and rockets. The pitch for this IPO is a future where the Entire TAM basically 26.5 trillion is enterprise AI. Your thesis is based on them being a NEO cloud running out capacity. When does Grok start making money? When do the models become valuable?
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So that's where I think if they close the Cursor deal within the first 30 days, I mean that's huge in terms of improving Grok model and coding agent is the real success story. When you think about lms, that's where every Frontier lab is making money. Guess what? Cursor is the top asset outside of the frontier labs when it comes to coding agents. So a huge acquisition. I think they will close it and that will really beef up, you know, the GROK side of things where it's mostly consumer subscriptions and we know that's not the high growth drivers. It has to be Cursor.
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I mean Christine, go through the thinking for us because initially knee jerk reaction might be why have they got spare capacity from that?
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That was kind of my point.
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Like why are they not compute if it's not being put and deployed into Grok I will they be able to have more and more to sell to Anthropic, to Google and others or they could start using it themselves.
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One of the fascinating things about the company is actually the speed that they've gotten this capacity up and that changes the underwriting here. If you look at Colossus 1 and 2, some of the fastest data centers built right within the ecosystem for these kind of NEO clouds focus on AI compute. Colossus 3, obviously a project that's coming online and so I do think that what you're going to see is that they build these data centers faster, cheaper and that gives them spare capacity on the older ones to be able to offer it for the hyperscaler business. And then companies like Cursor, which obviously the acquisition probably closes after the listing and then the GROQ models will give them their own kind of first party enterprise offerings that they can use that compute for. And I think Elon has publicly said that they want to work with their partners. You know, if demand drastically increases, they may take some of that capacity back. The older capacity. If, you know, demand continues to scale but they build capacity at a similar rate, then there's more than enough to go around for everyone. I think once again it's just the company realizing what are their inherent advantages and it's really building infrastructure and, and so I think that's fundamentally the bet you want to make is can they build infrastructure, can they vertically integrate and cut costs and does that give them some advantage on these huge markets?
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If you look into side the tin can and where the tin cans are, a lot of differences between Colossus 1 and Colossus 2 and 3. Maybe I'll bring you a bit more about that later. The what happens next for the company and you know, if you're high up the cap table as a VC that's been on the long journey, there's a lot of daylight between present day and the future. It's still all predicated on Starship working and being reusable. How much do you think about that?
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Yeah, Starship's a huge piece of the equation. It's what unlocks the version 3 satellites for Starlink. It's what helps obviously unlock and be able to launch data centers in space. It's what gets to the moon, is what gets to Mars. It's a very important piece to the platform. The business as you see if you look at Starlink has just been built on the Falcon 9 platform. Right. If you look at their compute business, that's terrestrial. So there is a lot of scale for the business on just where they are today with the current sets of launch capabilities. But Starship's a huge, a huge driver for that. And quite frankly I think it's one of these things that is as an American and I think for everyone around the world that you want to root for. Because Space X is the launch provider for the entire world. Right. Most of the world works with them and they are all in the same boat of really wanting this company to succeed because of what they've unlocked for I think the country here in the States and our allies as well. By bringing launch capacity back, back, Starship is going to take that to a next level where I think it's going to unlock not just new opportunities, new markets, but also help more and more businesses be formed in space. You know, the Falcon 9 platform led to companies like Varda being formed. What happens when Starship reaches the kind of scale and capacity that Space X is targeting? What kind of businesses could be launched then? Right? We have no idea. Right. Maybe instead of venture backed businesses, it turns out you can have small businesses and small business owners be able to build businesses in space. This is a totally new world that we're entering in.
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This is an ecosystem system. This is maybe fuel to more angel investing, more venture capital investing but more founders as well. But Mandeep, the risks here, what should an investor keep in mind as we await the first trade?
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I mean, look, the valuation is already likely to exceed 2 trillion. So when, when I see that kind of market cap, even with the triple digit growth that I am baking in for the side of things, I can't see, you know, how that, you know, 1.5 trillion combined space X and Starlink valuation can be justified if my numbers for XI are close to, you know, three to $400 billion with the growth rates. So I just find the valuation to be quite rich at this level.
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A lot of people I know that already on the cap table say they're thinking about the valuation in 2030 or 2050 and they work backwards. Mandeep Singh, Bloomberg Intelligence, leads our research of technology. Christian Garrett, investment partner at 137, one of the early and durable investors on the Space X cap table. Coming up, Space X's IPO marks one of the most significant windfalls in venture capital history. We're going to discuss who the big winners and the big names on that
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cap table are waiting with bated breath. But as we go to break, here's actually a live look at what's really happening right here, right now. A panel. Chevron CEO Mike Worthy there see speaking with Annmarie Holden over in Houston. Follow along on Lyco.
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This is why was shut off. And so that's where you saw differentials get very wide. But subsequently, you know, you've got supply. This is Jacob Goldstein from what's yous Problem? Business software is expensive. And when you buy software from lots of different companies, it's not only expensive, it gets confusing. Slow to use, hard to integrate. Odoo solves that because all Odoo software is connected on a single affordable platform. Save money without missing out on the features you need. Odoo has no hidden costs and no limit on features or data. Odoo has over 60 apps available for any needs your business might have, all at no additional charge. Everything from websites to sales to inventory to accounting, all linked and talking to each other. Check out Odoo at O D o o dot com. That's O d o o dot com. If you're feeling off fatigue, mood changes, skin shifts, yet your labs say everything's normal. You're not alone. Meet Oestra from Inner Balance. The first all in one prescription strength bioidentical hormone cream that's natural and effective and only takes one drop, 10 seconds a day. Oestera replaces five to six products women typically use to treat symptoms and is third party tested to ensure the highest quality. Visit innerbalance.com today to start feeling like yourself again. That's innerbalance.com A burst pipe, a dead water heater, the AC calling it quits. Who do you call? HomeServe is an easy way to handle unexpected home repairs with plans covering stuff basic homeowners insurance usually won't. Instead of scrambling for a contractor, you make one call to get the repair process started. Join the millions of customers who trust HomeServe right now. Go to homeserve.com/podcast for 50% less your first year. That's homeserve.com/podcast savings compared to renewal price void in Florida.
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Some of the venture firms that have backed Space X are set to earn tens of billions of dollars in returns today. They include Founders Fund, Andreessen Horowitz, Sequoia Capital. Bloomberg's ventures reporter Rebecca Torrance joins us now. I mean it's paper money, but it's big money.
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It's huge money. And I think one of the most interesting things about this is that not just SpaceX's early backers are going to make a huge windfall off of this, but even some of the late ones as well. So Sequoia, Andreessen Horowitz, both came in fairly late relative to the entire lifecycle of this company. You know, the multi decade history and yet stand to make tens of billions of dollars off of this ipo of course is same is true for some of its early backers as well and longtime Elon Musk allies including Valor Equity Partners and Founders Fund.
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Yeah, the Founders Fund number like you double check it, 50 billion plus because you know, I was on stage with Trey Stevens the other day, one of the 12 investing partners at the firm. I think they did 600 million over many period of time. Like just talk about those two bigger beasts, right?
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So I mean I think it is, it's really fascinating to see how muscle Musk's early allies continued to back him of course you know, across the lifetime of this company. First investments around 2008, 2009 and of course it's been many years since then. Some of these were folks back from the PayPal days, for example, Peter Thiel and you know, early investors that believed in Musk and its basics before the space economy really took off.
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For Andreessen, this will be the biggest return in the firm's history. Bloomberg's Rebecca Torrance, top job, thank you very much. What does this IPO mean for other IPOs in the pipeline Goldman Sachs President and CEO John Waldron thinks it's a step closer to a wave of listings.
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It's a $75 billion IPO, the largest in history. I think it presages the beginning of a pretty sizable wave of IPOs, which we're excited about. I also think it shows you the capital markets led by the US capital markets markets, but the global capital markets are demonstrating a willingness to finance this infrastructure build and this build in space, which is quite exciting.
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Pegasus founder and CEO and it's a man agrees and is invested in all three companies. Space X, Open AI and Anthropic. How difficult is that to pick the winner?
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It is not that difficult actually. I started investing in SpaceX first and you know, I had a fantastic time and you know, we continued seeing the growth of SpaceX. It was a space exploration company and then it started doing good in Starlink and Starlink started expanding and then came in OpenAI and Anthropic and they were all, you know, connected to each other in some sense. When SpaceX started blooming, I think, you know, we were feeling confident enough when Open Air came in. We invested in OpenAI and then we followed. And so it happened one after another.
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And if there's room for all three. Look, I've spoken to Thrive when they raised their last round and they are ride or dies in just Open Air. They don't believe in spreading your bets like this. But is it okay that they're all kind of in on the same business? Business model here?
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G
They are. But you know, AI is such a big market. I mean there is so much opportunity. When we looked at OpenAI and they're doing good at the same time we found that, you know, Anthropic was focusing on more enterprise level, you know, so they're more focusing on the business to business side. They are more research oriented. So we feel that they have a different flavor. So you know, you like vanilla ice cream at the same time you like chocolate as well. So you know, we kind of like invested in two different types of, you know, infrastructure. We also invested in AI. So you know, we thought that we'll actually take part in every single angles of the domains that these companies are focusing on.
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I think what's really interesting here Ed, and I guess to you is that if you think about Thrive, they're in Space X2. But at the time they weren't thinking of Space X as an AI company. Yeah, this has become quite a late power play for Elon.
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C
Yeah. And you know, Christian Garrett from 137 Ventures is with us and we're going to speak to him later in the hour. Again, you know, the idea here is that the thesis is constantly evolving with Space X, you know, but when I read the prospectus, the TAM number, the story that they're pitching investors of the future, it bet you it's very similar to what Anthropic and Open Air right in their prospectus. That's difficult to market.
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G
It is. But you know, if you look at SpaceX there, you know, I, when I look at Space, I look at it as an air energy and connectivity infrastructure conglomerate. You know, if you look at Starlink, I see the potential is huge. We have only 10 million subscribers, 1012 million subscribers of SpaceX Starlink right now. If you look at the number of Internet users in the world, there's 6 billion people using Internet and everybody is moving to Starlink. So if you look at that way that Starlink has a huge potential. Then you look at their plan for what they're trying to do. They're trying to create infrastructure in the orbit. They can do it because they have launch capability and they can do it at a minimum cost. So if you look at SpaceX, I mean, they're playing a different game. They're not only, you know, thinking that they're going to become an AI company, but they're an AI infrastructure company. Down the line they'll be able to help OpenAI and Anthropic as well. Some kind of the backbone of the whole software development you're seeing.
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B
Yes, briefly, SpaceX is one of your most significant positions, valued at over $1 billion as it stands. And do you hold it for the long term?
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G
I will hold it actually. And I feel very positive that the sterling use usage is going to grow significantly. Every single car, every single plane, every single person in the world, a big portion of the 6 billion Internet users are also going to come under Starlink usage. And I feel that this company will grow at least 30% each year from here on for the next 10, 20 years. And I want to hold it for the long term.
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B
Pegasus founder CEO and he's a man. Fantastic to have you staying up late for us. Meanwhile we just get the latest indications of prices. Space X shares indicated to open at $159.90. That's 18% above its IPO price. Coming up, we're delving ever more into space, this blockbuster Wall street debut, critical test of the company of Elon Musk and what is therefore he worth? More than $1 trillion. If we hold on to this number, you got the dilute.
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C
No, he would hit a trillionaire status if it was $138 a share. So at 1:5990, fully diluted, the company's worth 2.2 trillion, which, say it out loud again, 2.2 trillion. Maybe. We'll see. There's a lot more to come. State of play. It's not yet trading. These are indications that we're getting ahead of the start of trading on the Nasdaq in New York City and in Texas, where Elon Musk spoke this morning. And by the way, markets are on a rocket ride today. A lot of volatility and if you look at different assets, part of that story is I think some people are trying to work out how they have some liquidity to play the biggest IPO in history.
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Enough puns, said Ludlow. Not nearly enough puns.
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Bring them on this Bloomberg Tech. Welcome back to Bloomberg Tech. Space X and the biggest IPO in history. Its trading debut is imminent. First, the markets. We're now up almost a percentage point on the NASDAQ 100. But we have swung between gains and losses all morning. And there's a lot of evidence out there, along with geopolitical risk, that people are searching for a plan on how they are going to play the IPO when trading starts if they didn't get an allocation on the institution or the retail side. That's part one. Part two. Elon Musk speaking earlier this morning at Starbase Texas.
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There are always problems on Earth. There are always problems on Earth. There are always things that we wish to be better, that we want to solve here on Earth and we should solve them. But they also have to be things that get you excited, excited about the future, that make you glad to wake up in the morning because you can't wait to see what happens next. And that's the future that Space X wants to bring to you.
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And the market can't wait to see what happens with the price indicated to make it the sixth most valuable player on the NASDAQ 100 as and when it joins that benchmark, you hire Anand, you're at the nasdaq. What are you watching?
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It seems like we're getting closer and closer to that first trade. Caroline. We've gotten a series of indications and they've continued to edge slightly lower as they continue to work through the price discovery process. The latest indication is $105 $55 a share. That is up 15% from the $135 IPO price and implies a valuation of $2 trillion. That means space X would still rank among the most valuable companies in the world. More valuable than the likes of Metta, Saudi Aramco and even Tesla itself.
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Bloomberg, Hira Anand back throughout the hour, every blow by blow from the NASDAQ. SpaceX also recently unveiled a detailed look at an AI datacenter satellite SpaceX plans to build. It's a big development in the first final days that drove this historic IPO. The record breaking $75 billion market debut is imminent. Bloomberg's chief space correspondent Lauren Grosch is with us. And still with us, Christian Garrett 1-37-manager ventures managing partner investing partner one of the sort of long term investors on the cap table at Space X as a private company and now as a public company. Lauren out of this world, right? The whole point, point here is that Space X wants to get Starship right so it can deploy data centers in the form factor of a satellite. We have basically what are renderings that Elon Musk shared with us the other day. Explain the basics of this. I know you don't have a degree in astrophysics.
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E
Well I've been covering the company long enough. I hopefully have picked up some stuff along the way. No, but you said it. Starship is key to all of this, right? So originally it was debuted as the vehicle that is going to fulfill Space X and Elon Musk's dream of sending people to Mars. And that's still the goal. But in the same time they're also putting all of their hopes and dreams on this rocket as well. It's going to be responsible for launching the much larger upgraded Starlink satellites. And then also it'll be crucial for sending humans to the moon for NASA. And then of course it'll be the key that sends these data center satellites into space. So that definitely has to work. And it's had a bit of a rocky road of development up until now. It's also meant to be the first fully reusable rocket that's ever developed. I mean that is the holy grail of spaceflight. So if they can get it working that will be key to all of the success. But that you know when that will happen, how that will happen, if things get descoped along the way. I think that's what we will be following now as SpaceX as a public
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company company and we follow the price indications. SpaceX shares now indicated to open $150 as we stand 11% above its IPO pricing. Christine, that's an enormous win for your venture fund and for the very early bets you took in this company, does it give you any anxiety that the business model just gets even bigger and bigger and bigger? I mean, talk to us about the orbital data centers and how swiftly you really think that can get going and almost the piece by piece stress testing the potential of that.
- [32:02]
A
Well, you know, I think historically the company has always set very, very aggressive and ambitious timelines and goals and at times they've exceeded them. At times things take a little longer, but they've always delivered on what the ultimate goal and outcome was and whether that was getting to partial usability, whether that was building and launching the Starlink Constellation Starship's development timelines, figuring out the physics engineering around the Raptor engine. And so this is just another example where they've, in my opinion, some of the best engineering teams in the world are at this company and they have high conviction on their ability to deliver on this and they set timelines to start launching these things within the next couple of years. And so I think historically the data has always shown that the company is always right and sometimes they're early, sometimes they're late, but they are always right in these things. And I think that's a fair bet to make again here. And I think we're going to see fairly soon the build out start happening.
- [32:57]
C
The plan is as early as 2028 for orbital data center deployment. That was in the prospectus. I think what Christian's hinting at but people phone me and say is they see it happening sooner but it's highly analogous with Starlink. So I think a lot of value. Lauren, if you just catch up the Bloomberg Tech audience on the scale of Starlink today, that's not a space based data center, but it shows their competence in dependence deploying satellites in constellation at scale.
- [33:20]
B
Absolutely.
- [33:20]
E
And when Space X was first saying they were going to do Starlink with the numbers that they were saying, I mean they had, they had projected at first a 12,000 plus constellation and now they have over 10,000 satellites working in orbit. And I think a lot of us were kind of wondering how that was actually going to play out. And then look, now they are operating this massive system. They are the world's largest global satellite operator today. So I think they do have that advantage in being able to take the experience that they have from building and operating that Starlink system and they will apply it to this data center satellite. And that's even Elon Musk said when he unveiled that design for the data center satellite is that he thinks it actually will be easier to design for. I don't know about that necessarily. I mean if you look at those solar panels, those are pretty big solar panels. And they've also talked about launching up to 1 million satellites. That is a lot. Not saying it can't be done, but I do think it does pose some engineering challenges. But as Gwen said earlier, Space X likes to tout that they just take the impossible and they make it late
- [34:25]
C
when the President CEO at Space X, Bloomberg's Lauren Grosch. Thank you very much. Christian Garrett of 137 Ventures stays with us. This is Bloomberg Tech Friday, June 12th of 2026 Space X is IPO the biggest in history. Trading is imminent. Space X hasn't even started trading and Wall street is already publishing price targets. New Street Research quick out the gate initiating with a buy rating and a 165 target price. The firm's valuation case leans heavily on the businesses that are already making money in space and how that cash gets funneled into AI. His new Street's Pierre Ferragud on Bloomberg
- [35:01]
A
Surveillance Space today is a lot of cash flow. It's very cash generative. The telecom business is generating a lot of cash and if you have access to your own cash flow in AI, you can buy your own infrastructure that makes it much cheaper for you. You don't have to pay a margin.
- [35:19]
B
Let's keep the Space X conversation going. Nancy Tanglar, CEO, CIO of luffontangler Investments, an independent but historically bullish backer of Musk of Tesla. Do you want to be buying Space X shares if they open $150 as they're currently indicated to do so?
- [35:34]
H
Nancy Caroline, we are buying them at the open and it's not my preferred way of trading. I much rather have gotten an allocation. We're using the analogy to Amazon's public IPO in 1997. It was a company that was impossible to of value because there were no earnings, only revenues. And this feels a lot more like that than it does matter. So we're interested in owning it in our thematic portfolio which has a theme of space and then also in our growth portfolio. So those, those are the options that those are the places where we are putting it.
- [36:12]
C
Nancy, I wanted you to come on the program and I'm speaking so honest with the Bloomberg Tech audience because you're one of these investors of Tesla that that gets access to the company, right? I'm thinking about when you were at the Robotaxi launch event. Where do you stand? What is your thesis on the Combination of Space X with Tesla.
- [36:33]
H
Oh, yeah, so, and I do believe that is going to happen. I mean Space Tesla already owns shares in Space X through the Xi acquisition that SpaceX Space X made. So it's about a $2 billion stake. It seems to me to be just a beginning. And already Space X is the most vertically integrated AI company if you think about that. They have the capital, they've got the data, they've got the large language models, they've got the hardware, the engineering talent, the manufacturing talent. So we, we think it makes imminent sense for them to combine with Tesla. And I don't know if it's in 2027 or early 2028, but I think you'll begin to see evidence sense of a tighter and tighter relationship as we move forward.
- [37:18]
B
The public investor perspective. Let's get the private investor perspective. Christine Garrett, one through seven ventures still with us. Do you think it makes strategic sense at least for Tesla and Space X combined?
- [37:28]
A
I think the businesses have obviously a lot of commonalities, a lot of share projects, the Terraform project being one example. And so, you know, obviously I think it's a, it's a great sort of discussion point to, to sort of theorize what would happen if these companies integrated together. I think they have a credible partnership as stands. And so in either scenario I think it's super exciting the work that they're doing together and were that to happen, it's exciting. If it doesn't happen, it's also exciting nonetheless. And both are obviously generational businesses.
- [37:56]
C
We have live pictures from the nasdaq. We believe that the trading of Space X in the United States is imminent. I'm something we've been discussing throughout the hour actually, to be fair, for like days, Nancy Tangla is if you just put to one side the vision of the Future and the 26.5 trillion a TAM that the SpaceX presented. How much does your team focus on the here and now of their data center business business or Neo cloud business that they've done with Anthropic and Google?
- [38:29]
H
Yeah, I think it's important. And by the way, I loved what Christian just said, but it's exciting either way. I also loved a headline on Bloomberg that said this company is cheap on a price to Cosmo ratio. So I think this is a name that is more of a narrative name for us than it is valuation. Our thematic portfolio does not focus on valuation, it focuses on obviously themes. And so I don't know how you quantify some of this. I think what's interesting is that the cast is cash incinerator right now is AI. But that is, as you just pointed out, 26.5% of the TAM of 28.5. I'm sorry, it's 26.5 trillion.
- [39:12]
C
Yes.
- [39:13]
H
Of the 28.5 TAM. So I think you have to think about the data center business. It's what excites us to a great extent. But Starship, you know, is required, as we know. I think they'll get there. I have no doubt they'll get there. It's just a question of when. So we're really buying the future when we buy this company. And our time horizon is five to 10 years.
- [39:35]
B
And you are buying at the open. Nancy Tango of life for Tenga Investments, a joy to speak with you today. Thank you very much indeed. Look, we've got to get to Bloomberg's Bailey Lipschultz, who has been driving the coverage of this IPO since we first got the confidential filings, the actual filings. And now we wait with bated breath. We are but moments away from the opening trade, Bailey.
- [39:55]
I
We are but moments away from a historic moment. And it's going to be fascinating to see if we do avoid a Facebook 2.0. And just to see how this not only opens, how it trades, and really when we start to see retail investors flowing through and placing those orders, what that ultimately looks like it does to the stock, just given the fact that this is going to be potentially pretty volatile.
- [40:14]
C
So, Bailey, the latest indication indication of opening is $150 a share, 11% above the IPO price and implies a market value of roughly just 2 trillion. Just you and I reported out the numbers right on, on the retail allocation, long only asset allocation. Somebody's going to be disappointed. How does that translate when we do start trading?
- [40:35]
I
Everyone is disappointed.
- [40:36]
C
Let's state it that way.
- [40:37]
I
Everyone pretty much, for all intents and purposes, didn't get what they were hoping for. The big question now is does that drive follow through buying or does it irk people when they say, you know what I'll do? Just provide some liquidity, sell the stock hopefully at a nice 10, 11% gain and move on with my life? Because the big question when we do see these debuts is where does it open? Do we see steady follow through to the upside and how does the volatility play out? Are people holding on for massive gains, providing quick, quick ins and outs, or is this something that we're going to be really tracking in the next week, in the next five trading days?
- [41:08]
B
And I bring Back Christian Garrett, who of course isn't disappointed because he's been in this company from almost its birthday. And you've been reallocating upping the investment each and every round. We know lockups expire in about August. So what happens to your holding?
- [41:24]
A
So us, and alongside many of the investors who have been invested for a long time that are running institutional firms, all have the same dynamic where we will distribute back to our LPs and let them make their own decisions. And, and within that, I think one of the, a lot of the articles have come out which have been great, really highlighting how large a position Space X is for a lot of these institutional investors. Investors. And so you know, whether it's an endowment or a pension plan, whether it's, you know, a friend or a family office or other different types of institutions, foundations, all these folks are going to end up receiving that distribution of the stock. And many of them are not going to be selling. Right. Some may have liquidity needs and I think that's a decision that each LP will make.
- [42:01]
C
Something that you touched on earlier is critically important. We might get interrupted any moment, you know that. But like there have been regular liquidity events for Space X staff and employees. There will be more than 4,000 millionaires minted at Space X from, from this transaction. They chose to stay, We've reported many of them tried to get more shares through the Direct Share program and otherwise speak to that. Like what does that signal to you?
- [42:25]
A
So SpaceX really pioneered this staying private for longer trend.
- [42:29]
C
Right.
- [42:30]
A
Our firm started 2010, 2011, really on the feet, on the heels of Facebook book, which was really the first one. And Space X really took it obviously to another level. One of the dynamics that they did in order to stay private longer was offer regular liquidity events for their employees. During that dynamic over almost two decades, employees have had ample time to get liquidity and cover different needs. And I think that's something that's underappreciated about the business is not just the impact it had on the venture ecosystem. Right. So much of what we're experiencing is because of how much capital is flooded in as companies stay private longer. But in particular, a lot of the employees have already had their chances of liquidity. And so as Ed mentioned, a lot of these folks are long term holders and are not selling as well.
- [43:07]
B
We're getting excitement building from the floor of the NASDAQ as we await the opening trade of Space X, most recently indicated at $150, rating it at about a market capitalization. If you're looking at a fully dilated, diluted basis of just under $2 trillion that make it the sixth biggest company on the NASDAQ at 100, just below Amazon, just above Broadcom. And Bailey, you've been talking about how integral this is to the retail investor. How much allocation to the retail investor get, how much are they going to pump up the stock?
- [43:38]
I
We reported that 20%, so about $15 billion, which is a large number, granted. As we had also reported, they put in orders for about 100 billion. So again, a lot of people getting far less than they were expecting. And the big thing is going to be again, are these in individual investors going to show up in size? If you put in for $30,000 worth of the stock and you got 5,000, are you going to then still buy 25,000 in the open market? The other thing to keep in mind too is the fact that I would say the vast majority of individuals use market orders. They don't set the price. They buy wherever they can get filled
- [44:10]
C
with Bailey lipschultz, Christian Garrett, 1 through 7 ventures, stay with us. Thank you both very much. Space X begins trading today under ticker SP. See X indications. $150 a share, 11% premium on the IPO price of 135. They raised $175 billion, largest IPO ever. The deal was so heavily oversubscribed, especially in the retail category, as Bailey outlined. Elon Musk promised loyal Tesla shareholders priority access to the Space X IPO for a long time. But did they get it? And how is Tesla's retail base reacting to SpaceX is listing Alexandra Mertz, better known as Tesla Boomer Mama, one of Tesla's most prominent retail shareholders and investors that are active in the investor retail base, joins us now. My understanding is that you did not try and get an allocation in this IPO that you won't try. Alex, stay put.
- [45:04]
B
Carrie, we have an opening trade. Space x opens at $150. That is an 11% increase on $135 pricing. Extraordinary day and you have followed this tick by tick, moment by moment. But we understand that an opening trade has come in at $150. Shares open for Space X. The NASDAQ crowd goes wild there.
- [45:29]
C
We are sent away the IPO price at 135, that's going to jump around. It's going to be a long few hours of trading, a market value of about $1.1.96 trillion. But on a fully diluted basis, just a touch above 2 trillion. I think, I think we'll go live to the Nasdaq and Bloomberg's your higher. Anand Yuhara, what are you saying?
- [45:50]
D
Hi. The moment is here. And there it is. SpaceX has officially begun trading the stock opening at $150 a share above its $135 IPO price, giving investors an immediate gain, as you guys see, said of 11%. That opening price now values a company at Approximately less than $2 trillion, but instantly putting Space X among the most valuable companies in the world. So after a morning of shifting indications and intense anticipation with everyone here, from the president of SpaceX, the CFO, the market has finally delivered its first verdict on SpaceX. So now the focus will be whether those gains can hold as trading gets underway.
- [46:35]
C
Bloomberg's Johan and at the NASDAQ, Space X opened 11% above its IPO price of $135. You see on the screen trading around 1 $5253 per share and on a fully diluted basis at a value of just a touch over 2 trillion. Let's keep the conversation going and get back to Alexandra Metz, a Tesla investor, a retail investor investor, and also LNF Investor Services CEO. You didn't buy into this ipo. You have a thesis.
- [47:04]
J
Why yes, thanks for having me on this historic day and congratulations to the opening. Just when I was supposed to come on. Wasn't that funny? Back to my thesis. My thesis is that Tesla and Space X will merge and as a all in Tesla investor, I would have had to sell Tesla, which I was not going to do. So my thesis is I'm going to hold these and in a couple of short weeks, if I'm right, they will announce this merger that will then be consummated in the first half of 2027. And the Tesla shareholders will become Space X shareholders in this way. So no need for me to go into the ipo.
- [47:41]
B
Alexandra, you are a long term Elon Musk fan. Elon Musk has become the world's first trillionaire. As Space X jumps at the open well above $2 trillion in terms of market capitalization, he becomes the world's first trillionaire. What do you think?
- [47:59]
J
Well, first of all, I'm not at all into this net worth porn. It's really something that I cannot get over. Elon Musk is a historic figure that is providing 140,000 jobs that has changed an industry in car, cars, an industry in space that is going to change an industry in data centers. So whether he has a stock portfolio that's 1 trillion or not is just not relevant. Now having said that, what is relevant is the direct and indirect jobs he created and the many investors that he made rich, including many employees.
- [48:33]
C
We're seeing real acceleration now in the Shares. We're at $160 per share, ish, up about 18% above the IPO price of $135 a share in a second. I'll do the math on that. Alexandra Mertz outlined her thesis that she believes a merger between Space X and Tesla is imminent. Bloomberg has not reported that. We did report prior to Space X merging with Xi privately that the boards of Space X and Tesla had discussed the idea. We just don't know. I'd also point out that this is much about not just X economic ownership of Space X. Christian Garrett of 137 Elon Musk has 84% voting power post this trade. Why is that important to you? As somebody that's been on the cap table for a long time?
- [49:19]
A
I think any investment in Space X, whether it was in the private markets, which was our experience historically and then now obviously the company in the public markets and that's a shared experience among a lot of us now that the company's public. This is a company that has a long term view. They're investing in really transforming humanity across all these different verticals.
- [49:39]
C
Elon Musk is the swing factor and
- [49:40]
A
Elon's a huge swing factor, the visionary. And I think fundamentally you basically want to have a company that you know is going to be focused on the long term. And so that gives us the ability, that gives the company the ability to focus long term. And I think that's really the mindset you need to look at this. It actually brings stability to the company, which is what you, you want when you're investing in something that's going after a multigenerational opportunity.
- [50:02]
B
Alexandra, we go back to you because you have done years of due diligence on Tesla as a retail holder. Now one of the most vocal and well known retail investors on Tesla. Put your view to the retail investors trying to buy in to Space X but whose friends around them are saying, have you looked at the corporate governance? Are you worried about the dominance and the voting rights Elon Musk has? Is that a win or a loss for your perspective?
- [50:29]
J
Well, first of all, retail shareholders where I'd be very privileged, especially the small ones. So I went through my followership this morning and lots of the smaller retail investors got actually 100% of what they requested. So that is quite contrary to what Bailey said earlier. Now it is true the bigger portfolio the retail investors had, the less they got, which which is corresponding to the promise that Elon made. He wanted to have loyal small retail investors rewarded and they got rewarded today. Now to the governance, I mean it is clear that Space X is what I call Elon's imperium. He has rights like some other founder led mega caps that are just disproportional. Look at Google, look at Meta. But the, the retail shareholders who the last six years went through hell and back with court cases with act, with activists with whatever, they actually welcome this. They want the founder to have the power he deserves, especially in Elon's case. So I didn't hear any retail investor complaining about the governance in SpaceX. Rather the opposite. They would welcome that Space X is the entity that would absorb Tesla so that the errors that were made in 2010 with Tesla are finally out of the system.
- [51:53]
B
We are up 18 and a half percent Alexandra Mertz but meanwhile Tesla trades a little bit lower. You're a Tesla investor. Is that the right trade at the moment? Sell Tesla buy into Space X?
- [52:03]
J
Well I did not as you know and I do believe that actually a lot of the money today will pull back into Tesla. The two retail groups overlap a lot I'm sure about 80%. So the allocations that were not filled, I expect them today or on Monday pouring back into Tesla. So I'm not worried at all.
- [52:22]
B
Alexandra Metz Tesla Investor Shareholder LNF Investor Services CEO and Tesla boomer Mummer as she's known online. We appreciate it. Look, we got but a moment with the latest with your higher and and that we're going to be going to in a moment but we're going to Christine Garrett of 137 Ventures who sat with us. I mean how does it feel? You've been in this company for over a decade. You've invested round after round. It's now trading 17% higher than its listing price.
- [52:48]
A
It's an exciting moment and I have a lot of friends I know that are very excited as well. You have people kind of all around the world that have been a part of this journey, been a part of this company. From the employees to the management team to the investor base excited for for LPs. This was my dad's favorite company so I think that's even more exciting and so it's awesome to be a part of this moment but quite frankly I think this is very much a. Okay, let's get back to work and get focused because we have another 40 years of work to do.
- [53:16]
B
Christine Garrett, what a joy to have you here with us.
- [53:19]
C
Thank you very much for being here for the hour. Really appreciate Karen.
- [53:22]
B
Now we're going to say goodbye to Christian of one through seven Ventures. And welcome back in Hira Anand who is down at the Nasdaq. It's just trading and how is the energy on the floor?
- [53:32]
D
There is so much energy here at the Nasdaq and it really started this morning and when we saw crowds of fans, paparazzi here, some hoping to see Elon Musk, but of course he was over in Texas. But yeah, the enthusiasm continues now that that opening price does value the company at just under $2 trillion. It of course is instantly put Space X among the most valuable companies, more valuable than Metta, even Tesla itself self Saudi Aramco. And one of the people watching it all unfold here is this morning. This morning is NASDAQ CEO Dina Friedman who has worked very hard pursuing this largest IPO in market history. And we are seeing her talk at this moment. So after a morning of just shifting indications and intense anticipation, it is finally here. The market has finally delivered its first
- [54:28]
C
verdict on Space X. Bloomberg's Johara Anand working hard on the beat at the Nasdaq. We'll see you throughout the day. And what a day it is. Space X with the biggest IPO in history raising $75 billion and right now we're trading at around $160 a share.
- [54:46]
B
How does it feel? And you have been covering this company each step of the way discussing with the investors, the want to be investors, the retail allocations extraordinary. In every single moment Elon Musk was breaking the rules. The way in which this IPO highly
- [55:01]
C
unusual, it was atypical to set a price early then do a roadshow for no one really sure why. What I would say is there is a long, long way to the future where humans are a multi planetary species and there is satellites around the earth that are running inference their data centers. But in the near term, everyone's now talking about how good the company is at datacenter on Earth. Yeah, Hyperscale.
- [55:23]
B
What a blinder you keep calling.
- [55:25]
C
Yeah, they played a blinder. And actually I'm just using the phrase that people gave to me when they phoned me up and they say like this is why we're so convicted on have such conviction on the, on the name the last thing that will happen as well. Well, not the last thing, let's just be honest about this biggest IPO in history raised $75 billion. What happens next? They'll go back to the capital markets, I bet you.
- [55:44]
B
And I can't wait to be watching that. But right now I have some News. Because after 18 extraordinary years at Bloomberg, I'm actually pressing pause to have a wild and wonderful journey with my family. We're off to travel the world for a year. Just the four of us. Just four carry on bags and a whole load of excellent excitement. And it is with enormous gratitude that I want to thank this Bloomberg team for their support. As I step away from my daily presenting look, the decision has not come easily. In fact, I'm pretty terrified to fly away from the most exciting news flow, the most fascinating interviews, and what I believe to be the most talented team in journalism. It feels almost insane. But time keeps ticking, the kids keep growing. And so I know this is our moment for our adventure of a lifetime. But I also know Bloomberg has an extraordinary year ahead. No one tells the stories of disruption better than this Bloomberg Tech team. And I can't wait to cheer on Bloomberg tv, Bloomberg News and Bloomberg Originals as they continue breaking stories, landing interviews, winning awards. And it takes a village to bring news, to wire to television, to air events, to stage documentaries to life. In fact, it takes 3,000 of us Bloomberg journalists and 100 commissioners, countries around the world, as we like to remind you. But I've lost count of how many people have trained me, mentored me, challenged me, collaborated with me, floor managed me, filmed me, and yes, beautified me along the way. And to everyone I've been lucky enough to learn from outside of Bloomberg, every spokesperson, every executive, every event organizer, every audience member, yes, you watching this? Thank you. You make this an absolute blast. And a special thanks goes to the co anchor. I stand to sit next to you now, Ed. The production team I hear guiding me in the control room and the floor managers and the camera operators stood in front of me at this second. You're the best crew I could ever have hoped for. And I will miss you more than you could ever know. But it's time to swap studios pursuit cases with that. Maybe it does it for this edition of Bloomberg tech. Ed Ludlow,
- [57:47]
C
15 years to the day you and I met in London. You were the first person I met at Bloomberg and you made my career. Recap that show. Recap. Caroline on the pod. You know where to find it from New York City, the biggest IPO in history. This is Bloomberg Tech.
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