Best-of Interview: Tom Vice, CEO of Sierra Space

Summary

Motley Fool Money: Best-of Interview with Tom Weiss, CEO of Sierra Space
Release Date: December 22, 2024

In this standout episode of Motley Fool Money, host Ricky Mulvey revisits a compelling conversation with Tom Weiss, CEO of Sierra Space and co-author of the book Liftoff. Released as part of the show's year-end roundup, this interview delves deep into the future of space commercialization, the transformative potential of low Earth orbit (LEO), and Sierra Space's ambitious plans to build a platform in space that benefits life on Earth.

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Introduction and Background

Ricky Mulvey sets the stage by highlighting his initial meeting with Tom Weiss at Sierra Space's headquarters in Louisville, Colorado, back in March. He emphasizes the significance of Weiss's vision to transition from traditional space exploration to a fully commercialized space economy, fostering optimism about humanity's future in orbit.

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The Commercialization of Low Earth Orbit

Tom Weiss paints an expansive vision for LEO, moving beyond the era dominated by a handful of government astronauts to a bustling hub of commercial activity. He elaborates:

“We're transitioning from a time when just a handful of astronauts on government-owned space stations have been doing some research on low Earth orbit to the point where we will now be building factories, building cities, finding the next generation of disruptive products.”
[00:40]

Weiss underscores the integration of terrestrial and space markets into a cohesive ecosystem, where living, working, and manufacturing in space become commonplace. This paradigm shift is fueled by advancements in rocket technology, reducing the cost per pound to orbit, and Sierra Space's innovative approach to reinventing the space station to make space work economically viable.

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Technological Convergence and the Space Industrial Revolution

Discussing what Weiss terms "the most profound industrial revolution in human history," the conversation highlights the convergence of key technologies driving this transformation:

• Rocket Technology: Massively decreasing costs to reach orbit.
• Space Station Innovation: Reinventing the space station to lower operational costs.
• Microgravity Research: Exploiting the unique conditions of space for breakthroughs in various fields.
• Artificial Intelligence (AI): Enhancing research and operational efficiencies.
• Space Liners: Transitioning spacecraft into functional embodiments of traditional airliners.

Weiss is optimistic that within his lifetime, LEO will host up to 10,000 people simultaneously, fundamentally altering human interaction with space.

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Initial Ventures: Biotech and Tempered Glass

Sierra Space is strategically onboarding companies that align with their mission to impact billions on Earth. Weiss mentions:

“Monoclonal antibodies, stem cell research, and regenerative medicine… These markets in 2022 were $900 billion a year in terrestrial sales, [and] by 2038, the market is huge.”
[18:29]

The initial focus on biotech stems from the immense potential of microgravity to advance drug development and regenerative medicine. Additionally, the inclusion of tempered glass ventures signifies the diversity and scalability of opportunities Sierra Space aims to harness.

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Impact on Earth: From Biotech to Data Centers

A significant portion of the discussion revolves around how space-based research and manufacturing can revolutionize Earth-centric industries:

• Biotechnology: Research conducted in microgravity can lead to breakthroughs in cancer treatment, longevity, and organ printing. Weiss is particularly excited about the potential to print organs without the ethical and logistical challenges of harvesting from donors.

  “Being able to print organs without somebody having to die to harvest it first, I think that's a pretty cool thing.”
  [23:12]

• Data Centers: With the exponential growth in data processing needs, Sierra Space envisions relocating data centers to space. The benefits include reduced energy consumption, lower latency for global communications, and minimizing Earth's environmental footprint.

  “If you move all the data centers off the planet, it makes the planet greener and provides more space for people to live in or vacation.”
  [21:42]

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Defense and Security in Space

Beyond commercial endeavors, Sierra Space acknowledges the importance of maintaining space as a secure and sovereign domain. Weiss outlines their defense initiatives:

“We have a big part of our business that's a defense tech company… building high-end systems, critical missions for missile defense, missile tracking, missile classification, fire control.”
[23:50]

These efforts ensure that as space becomes more commercialized, it remains protected from potential threats, underscoring Sierra Space's commitment to a sustainable and secure space environment.

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Partnerships and Business Strategy

Sierra Space's collaboration with industry giants like Blue Origin exemplifies their strategic approach to building a robust space infrastructure. Weiss explains:

“We build all the habitats, we build all the technology associated with the space infrastructure… part of our partnership with Blue Origin for Orbital Reef.”
[25:14]

Their flexible leasing models for space real estate cater to diverse client needs, from biotech firms to advanced manufacturing entities. Additionally, Sierra Space is preparing for a public offering, aiming to leverage their proven growth and positive cash flow to attract institutional and retail investors.

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Personal Insights: James Webb Space Telescope

Weiss shares his enthusiasm for the scientific advancements enabled by the James Webb Space Telescope, highlighting its role in expanding our understanding of the universe:

“The James Webb's is proving some theories right, proving some theories wrong… for the first time we're really starting to understand some really fundamental things about the universe through James Webb.”
[27:29]

This personal connection to astronomical research reinforces his dedication to advancing space technology not just for commercial gain but for the broader pursuit of knowledge.

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Future Prospects and Concluding Thoughts

As the interview wraps up, Tom Weiss reiterates Sierra Space's mission to build a platform in space that tangibly benefits life on Earth. He emphasizes the company's focus on impactful research over niche endeavors:

“Everything we do here is how do we affect the lives of a billion people… I'm convinced that we need to do more here not to screw this place up.”
[30:16]

Weiss's vision extends beyond mere habitation, aiming to create a self-sustaining and economically viable space ecosystem that catalyzes groundbreaking advancements in medicine, technology, and environmental sustainability.

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Final Reflections

This episode of Motley Fool Money offers listeners an in-depth look into Sierra Space's transformative ambitions under Tom Weiss's leadership. From pioneering biotech research in microgravity to envisioning data centers orbiting Earth, the conversation underscores a future where space serves as a catalyst for solving some of humanity's most pressing challenges. Weiss's optimistic outlook and strategic foresight make a compelling case for why the next decade could mark a new golden age of space commercialization and innovation.

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Notable Quotes:

• Tom Weiss [00:40]: “We're transitioning from a time when just a handful of astronauts on government-owned space stations have been doing some research on low Earth orbit to the point where we will now be building factories, building cities, finding the next generation of disruptive products.”

• Tom Weiss [23:12]: “Being able to print organs without somebody having to die to harvest it first, I think that's a pretty cool thing.”

• Tom Weiss [25:14]: “We build all the habitats, we build all the technology associated with the space infrastructure… part of our partnership with Blue Origin for Orbital Reef.”

• Tom Weiss [30:16]: “Everything we do here is how do we affect the lives of a billion people… I'm convinced that we need to do more here not to screw this place up.”

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This comprehensive summary captures the essence of Tom Weiss's visionary discourse on the future of space commercialization and its intertwined benefits for humanity on Earth. Whether you're a seasoned investor or an enthusiast of space exploration, this episode offers valuable insights into the next frontier of human innovation.

Transcript

[Tom Weiss]

Everything we do here is how do we affect the lives of a billion people, whether it's cancer research, oncology, broadly leukemia, longevity, trying to figure out the next generation, breakthroughs in semiconductors. I think we're going to find new chemistry for batteries to even greatly accelerate the transition to electrical electrification. So I think of those things. And again, before we go off and buy another insurance policy to protect the human race by putting five people on the planet and try to regrow, I'm convinced that we need to do more here not to screw this place up.

[Ricky Mulvey]

As we wrap up the year, we're playing back some of our favorite conversations from 2024. This one is my interview with Tom Weiss, CEO of Sierra Space and co author of the book we have Liftoff. The mission of his company is to build a platform in space that benefits life on Earth. I met Vice back in March at Sierra Space's headquarters in Louisville, Colorado. We talked about the research possibilities in a more commercialized space, what's to come in the orbital age. And we're playing it on today's show because it ultimately made me, and I hope you, a little more optimistic about the future.

[Interviewer]

Maybe we'll get to the business, business stuff. I'm more curious about the life stuff, the possibilities. So, I mean, what is, what is life in low Earth orbit going to look like?

[Tom Weiss]

Yeah, you know, I think it's good maybe to take a step back and think about, you know, we're transitioning from 60 years of space exploration to a point where we're now moving into the full commercialization of low Earth orbit. We're transitioning from a time when just a handful of astronauts on government owned space stations have been doing some research on low Earth orbit to the point where we will now be doing building factories, building cities, finding the next generation of disruptive products, and oncology, longevity, microprocessors, clean energy. The way we see this playing out, and I wrote about this, some of the book was really, this is going to be a time in which we start to think differently, that there's the Earth's surface and then there's space. Like they're two different things. Terrestrial markets and markets that get developed in low Earth orbit are going to be seen as one integrated ecosystem. So people are going to be living and working in space. People are going to be doing research and manufacturing in space. Of course you're going to see a vibrant economy in terms of the way people think about vacationing differently in space. As I wrote about in the book, I've always had this sort of dream of this really iconic restaurant called the Blue Dot. Of course it's the Blue Dot because you look outside and boom. Right? And so the whole thing is to imagine that we really are on the cusp. Sometimes it's hard to see an industrial revolution when you're at the beginning. But I believe we're on the most profound industrial revolution in human history. And it's really the result of this convergence of technologies. We've been able to build rockets that massively decrease the cost per pound to get to orbit. Now we're building for us, Sierra Space is reinventing the space station to bring down significant the cost of doing work in space. To be able to transition from not just what you put in space, but now what you can build in space that you can't do on Earth. And this time is going to. Obviously we are integrating at a massive pace both the foundational tech of microgravity, the foundational tech of AI, the foundational tech associated with spacecraft that are turning into spaceliners. All that's coming together. And I think this is a time where you're going to see us move from what there's a little over 600 people that have ever gone to orbit to a time in which 10,000 people at any one time are going to be living in orbit. And that's going to happen in your lifetime, your generation. That's why I think about our focus of our company is to really build this business platform in space to focus on this very unique place we call Earth. I'm inspired by visions like Occupy Mars. But I think before we can figure out how to have people, human beings live 100 million miles away from Earth, we gotta get really good at protecting this planet. This is a very special place. And so that's our focus. We're just going 240 miles above our head. It's sort of like the distance between, if you're a baseball fan, I was putting things in terms of the Red Sox and the Yankees. So it's about that distance above our head.

[Interviewer]

The food part is interesting especially it's going to be difficult because all the food has to come in essentially blobs. It's going to be hard to spread things, a lot of globs and blobs because you got to keep it together for people to, to eat in little sort of mochi balls.

[Tom Weiss]

Sure. It'd be fun. Yeah. You know, I did a bunch of zero G flights. If you haven't had a chance to do those, I encourage you to go.

[Interviewer]

Do Those I have not had a chance to do that.

[Tom Weiss]

You gotta go do it, right?

[Interviewer]

Okay.

[Tom Weiss]

There's nothing like chasing an M and M around, you know? But yeah, so you just think about again, the purpose of the book was really to put, you know, every chapter was sort of different if you had a chance to read it. And it was trying to describe what life will be like. Most books, although I'm a huge Gene Roddenberry fan, most books are kind of scary about space. Something always terrible happens. I see space as exciting. I see that we're going to invent new things. But you have to think about what will life be like when people working on orbit will food, what will social life look like? What will eating look like? And so we try to describe that so that as more and more people start to think about traveling to space, whether they're biologists, chemists, physicists, or a couple people that are thinking about the next big breakthrough in cancer research, it's not going to be just government astronauts. It's going to be you, your generation, and my two granddaughters. So I tried to write a book for them to tie the sky. But living 250 miles above our head for months on andar and part of that is food and what will it be like?

[Interviewer]

And it's going to be a difficult life. You have to work out for three hours a day, you're taking sponge baths, Water is going to be a concern. It's certainly not an easy life to live in low Earth orbit.

[Tom Weiss]

It's not going to be easy. I mean, there's all kinds of stresses and strains on the blood system, your body. You have to make sure you are exercising your muscles of atrophy. Your bone density will atrophy. But I have to tell you, it's going to be a lot easier than living on Mars, 100 million miles away from Earth. So let's get this right, let's understand it and then, and then we can move on, right? So even think about lunar surface, you know, everything kind of gets a bit harder, right? So traveling 240 miles, I think getting that understood and having civilizations grow up and be able to understand that, oh, by the way, while you're there, really do great things on behalf of 8 billion people still living here. Next jump is 240,000 miles. That's, you know, the moon. If something goes wrong, it's much harder to get back. 240,000 miles is a lot longer than you think, right? And then you think about Mars, right? I mean, the two planets come the closest together at 35 million miles, right. The average is 140. That's a boy. You're out there and you know how many people are going to be able to live on the surface of Mars? A very harsh place to live in the next hundred years. What? Maybe you affect a handful of people if we're lucky.

[Interviewer]

So I hear that two things. One is that I think the vision for Mars though, is that this is an insurance population. So if we all blow ourselves up due to nuclear war, the spark of humanity lives on a little bit on Mars. And while the Moon is closer, and keep in mind I'm an amateur talking to a space CEO. The Moon doesn't have an atmosphere. The light's very difficult. Gravity is a lot more difficult than on Mars.

[Tom Weiss]

Everything's difficult. Well, I don't know, it's. But you have sort of lifeboat, right? I can get back here in days and not a year. But I would say again, build a platform in space to benefit life on Earth. What do we mean by that? We're going to try really hard so we don't blow ourselves up. We're going to try really hard so that we don't pollute the planet where our grandkids can't even breathe anymore. I worked for decade on James Webb Space Telescope. We still haven't found life anywhere. You know, we've only found a handful of planets that are even in the Goldilocks zone. And oh, by the way, they're the closest one is 100 light years away. The planet is a unique place. Like, it's kind of the planet and humans all form together here. This is, this is a quite a nice place. You go outside, you can breathe, you get sunshine, go down to the ocean, go up in the mountains and ski. I don't know about you, but I don't want to leave.

[Interviewer]

I'm pretty happy here.

[Tom Weiss]

I'm pretty happy here.

[Interviewer]

You're also training to be an astronaut, though. So you are, you are leaving in a sense.

[Tom Weiss]

But it is a trip, okay, Right. It's like, you know, I'm just going on vacation for a year, right? But I know that my family's here. I know I'm coming back. But what really drives us is the fact that we're not a company that's trying to affect the lives of a handful of people. We're not trying to give joyrides to a couple of billionaires who want to spend, you know, a quick trip in space. Everything we do here is how do we affect the lives of, of a billion people? Whether it's cancer research, oncology, broadly, leukemia, longevity, trying to figure out the next generation, breakthroughs in semiconductors. I think we're going to find new chemistry for batteries to even greatly accelerate the transition to electrical electrification. So I think of those things. And again, before we go off and buy another insurance policy to protect the human race by putting five people on the planet and try to regrow, I'm convinced that we need to do more here not to screw this place up. And so far we're doing a pretty good job screwing it up.

[Interviewer]

It's difficult to imagine people living in space when we're not going to the moon anymore. And it seems that NASA has shut down the shuttle program and shut down a lot of the, even the space station coming up. I've heard you compare it to the birth of the railroads in low Earth orbit. Why should people be excited about the future of space in even the next three, five, ten years?

[Tom Weiss]

You know, it's a very insightful question because I grew up in the 60s and you know, I was the classical young kid glued to a black and white television set in my grandfather's living room watching the Apollo program. And it inspired me to be an engineer, but inspired me to do really hard things that were meaningful. And it has been a long period of us getting back to the surface of the moon. But you see that we're going back. You see NASA's Artemis program, you see commercial companies going back. It was great to see intuitive machines landing again. I space almost. I mean, they were within a couple of meters. The amount of energy being put into going back to the moon by private companies, non governmental, is so exciting. And I think there's a general consensus now that we're not just going back to land human beings on the moon, we're going back to stay. And I think that's exciting for a whole new generation. As I look at the shuttle program, in many ways I would say Dream Chaser is a testament. The wings are back, but I think even in a better way, we built Dream Chaser to be able to land at any commercial Runway. A 737 Max or an A321 can land. And so that creates. Wow, what's happened there. We just invented the first space plane, commercial space plane. But what's more exciting is we just invented the first spaceliner. You think about. We're taking advantage of the worldwide global infrastructure. So instead of everybody coming back or everything coming back from space today, it gets plunged into the ocean in a capsule or into the dirt in A capsule. I think it's going to get a whole new generation excited. Just like the five year old, six year old Tom Weiss was in the 60s. There's going to be a five year old, a six year old girl that's watching dream change to land at the Paris Air show and go, wow, the first spaceliner. I got to tell you, this is a really interesting story. I was a keynote speaker at Oshkosh one year, maybe, I don't know, five, six years ago I think it was. And a ninth grade girl stood up out of this. If you've ever been to Oshkosh, it's sort of a cool place. She stood up and she asked me did I believe that someday we would build a space plane that would be just like an airplane. And you can imagine my answer. I'm giving it to you right now, which is that day is now come. And I think that will be very exciting. I think the iss, it's done a remarkable job. We've had space stations now in orbit since 1971. The ISS has served humanity very well. And this time is coming due at the end of 2030. The plan is to deorbit it. But before we deorbit it, the most exciting is that there's going to be commercial space stations in orbit. Right. Ours will clearly be there. And it's not just a replacement. The iss, it opens up a whole new world of commercialization. It's meant specifically to be a research and manufacturing center, largely for us. It's biotech and industrial tech. And just like Merck's drug Keytruda, if you know the drug, I don't. It's a monoclonal antibody meant for cancer, which has done a remarkable job. In 2023, that drug was $23 billion in sales. You know where that drug came from, the research that was done on the iss, Right. That's just one drug. Imagine if we do that 100 times a year. You know, I have two young daughters now, two young granddaughters. And to think about, you know, we have for the first time the opportunity to cure leukemia. If you think about just the impact you could have on just that one thing, what was the benefit? And that's why we say we're building this platform to benefit life on Earth. Isn't that more meaningful than trying to put five people on the planet of Mars? You can affect 8 billion people and oh, by the way, just maybe we can prevent nuclear war.

[Interviewer]

Yes. Along the way defense is going to be, I hope it's the McDonald's effect up there where what is the countries that have McDonald's don't go to war with each other.

[Tom Weiss]

I hadn't thought of that before, but after a good analogy, if you're doing.

[Interviewer]

Research with each other up there, maybe you don't go to war either. We talked about some of the research possibilities of building this commercial space station, these inflatable space habitats, talked about battery technology, you talked about some medicine. But for those who may not be familiar, why is gravity such a problem for developing these, these drugs and technologies?

[Tom Weiss]

Obviously we built a lot of great stuff in the gravity fields of Earth, but when you, when you take, if you think about gravity is a very strong force, I mean we don't feel it because we kind of used to it, right? But it's actually a very strong force. Without gravity, you can do things that are very different in terms of crystallization and very pure, very structured, very uniform crystals. Because I don't have gravity interrupting in the crystallization. That crystallization could be protein that goes into biotech. And protein crystallization for biotech mainly goes into cell structures, protein structurization, body absorption, all kinds of things, Right. It's also an inorganic, I can do very pure glass. So today we're all used to fiber optics in space. You can build glass that's far more pure. I can build chips, I used to run several foundries. You can build chips that are very, very different. Now when you think about all of that happening now, when you add AI into that, I can accelerate all of that research. And so the crystallization of microgravity fields is very unique. Again I always say, wow, if I could figure out how to build anti gravity factories on Earth, I'd have already done it. That's how powerful it is. And there's been thousands of research done, hundreds of companies on the iss. This science is known, just Google patents on microgravity and it's amazing amount of work. But the ISS was never established to be able to go from research to research to research into production very fast. And the ISS is expensive. And so our focus has been to get the economics so that the board meetings of Pfizers, Modernas and Merck's of the world start to realize now there's a return on investment and now's the time to find a cure to cancer or a cure to cardiovascular disease, or being able to print tissues for livers and hearts that you can't do on the Earth. That's been our focus.

[Interviewer]

To ask one dumb business question, then I want to get back to the cool stuff. Earlier today I had a conversation with my landlord, got me thinking about rent. How does rent work?

[Tom Weiss]

We have many different models. Part of it is that there's a real estate. We're sort of in. We're the largest real estate developers in North Orbit. That's one way to think of us. We're also partners on some cases where we are partnering with a drug company and the cost of that research is borne by both partners and there's a revenue stream based upon the drug that gets developed. And some companies that we talk to, they just want to buy part of the real estate instead of lease it. Some companies want to lease it, some want to lease 100 cubic meters and some want to lease enough to do five experiments a year. So we're very open and flexible and agile in terms of what the leasing arrangements are. So you may want to, again, in your case, your leasing or renting an apartment, some people like to, to own the condo, some people like to own the building. Right. And so think of this as a real estate agent. But we provide the real estate, the utilities, and in some cases we provide additional venture capital. And then we get a percentage of the drug or percentage of the chemistry, you know, or whatever it might be that we're producing.

[Interviewer]

There's probably a pretty strong HOA up there as well.

[Tom Weiss]

Yeah, well, we'll be the HOA and manage the hoa.

[Interviewer]

Yeah, I heard you mention basically you have a lot of tough decisions in terms of what companies get up there first for these space stations. I've heard that it's three biotech firms and one tempered glass.

[Tom Weiss]

Now you're probably asking why did we pick those. Yeah, yeah. Just because what we looked at was a combination of factors. One is how large were those terrestrial markets and have those markets proven to show benefits of microgravity in space. The third is the companies that did that work in space. How fortunate are they to do want to do work? When you combine all that together, what we saw was monoclonal antibodies, stem cell research, and regenerative medicine. Advanced class were the four that were the closest in terms of ready to move to space. Now, if I think of the markets There, just those four markets in 2022 was $900 billion a year in terrestrial sales, 8.3% CAGR going to a $3.7 trillion business. By 2038, the market is huge. Right. And so for us, our focus is to go capture 1 to 5% of that to have a huge business in space. I don't have to capture 50% or 100%, you just have to capture 1 to 5%. And the numbers are massive right now. I think we'll capture much more than that. To build a business case, though, you're in the single digits of capturing that market. But that's why those three or four were very powerful for us.

[Interviewer]

The tempered glass one was surprising to me instead of when I read your book. I'm so excited about the possibilities of quantum computers and putting these computers out in space where they don't have to pump all of the energy to get to basically near zero temperatures. Which that one surprised me a little bit. So I hope you guys are able to do that.

[Tom Weiss]

We are going to do that. I just don't know if that is first. I think that this computer, the size has come down and I don't know if you saw Nvidia's announcements. I was really kind of excited about their new chip. But as the new chips get more and more powerful, they get cheaper, they consume less energy. Then you'll see data centers not in the cloud, but in space. And oh, by the way, it's really great to manage the temperature. And if you think about moving stuff to space, I mean, I'll give you a really interesting one that's happening right now because we're very excited about this. The entire directed device. You're watching this, right? The entire. This is where lots of conversations now where I just want to connect my iPhone to satellites without cell towers. So my iPhone works anywhere, right?

[Interviewer]

Okay.

[Tom Weiss]

So a lot of effort, a lot of incredible technology is going in to directly connect your phone to satellite systems. So you don't need cellular. You're not talking to cell tower, you're talking to a satellite. And so there's an ecosystem between cell tower, cellular, terrestrial cellular, and in space, mobile services from satellites. All that ecosystem's coming together. But you think about, if we had thought about just taking the entire structure to space, you wouldn't need any of these ugly cell towers everywhere, Right? I mean, just think about what we just moved off the planet, Right. If you do that with chemistry, I just moved chemistry factories which are hazardous to space. So now you think about data centers, right? You think about how much energy data centers take. We talk about how much CO2 airliners put in the atmosphere or business jets. Data centers are far worse.

[Interviewer]

I didn't know that.

[Tom Weiss]

Yeah. So you move all the data centers to off the planet. It makes the planet greener, Right. It provides more space for people to live in, vacation. So taking stuff off the planet into low Earth orbit. That's this whole idea of building a platform in space to benefit life. So part of it is data centers are really exciting for us. I think they're not going to be the first thing we take up because they're just massive today. I mean you've been to a data center, they're massive. Right. Although they're much more than they were again in the 1980s or 1990s. A terabyte now fits. My iPhone has two terabytes in. Right. But they're getting smaller and smaller, consuming less power. We put them into space, you put them in leo. So the latency is low and if we build them right, they'll be really cheap. That's going to happen. I will say though, I still remain really, really excited. First on biotech, person dies every nine minutes in the US with leukemia again. I always tell our team if we did nothing, nothing but solve one issue like leukemia, huge. Now if I can solve cancer, cancer is a trillion dollar problem. Right. What I'm really excited about because I'm a little older than you is I'm really excited about longevity. There's a massive research going into longevity right now.

[Interviewer]

And you're going to be able to print organs where they're not collapsing in on themselves.

[Tom Weiss]

Yeah, I mean right now we're already proving we can. Retinas are already something that's been proved. I think livers are next, organs are to follow, heart's a little harder. But ultimately being able to print organs without somebody having to die to harvest it first, I think that's a pretty cool thing.

[Interviewer]

That'd be pretty cool. One thing we've I think touched on, didn't get into too much though is defense. How much of the work are you doing is because I want the commercial space station to be an American company and I think that that's going to be important as you try to keep life on Earth. Saf Safer, how's your work going to do that?

[Tom Weiss]

I think that's another great question. We believe if we're going to be able to accelerate a vibrant LEO based economy and keep space free and available to everyone, we also have to be the company that defends space. And so we have a big part of our business that's a defense tech company that's leveraging our technology and ingenuity and we're building high end systems, critical missions for missile defense, missile tracking, missile classification, fire control. We focus a lot on space superiority, space situational awareness, exquisite earth observation and pull all that together so that we make sure that if you want to do things of harm in space, we can stop you. We do that on behalf of the United States government. Of course, we were sort of in stealth mode on the defense tech side of our business for the last couple of years. But over the last 10 months you've seen announcements where we've now been awarded $1.3 billion in contracts to do those kinds of missions. We think it's really incredible. I encourage all high tech companies and space tech companies specifically, that if you're building things and you're a patriot of this country, you owe to make sure that we keep space free.

[Interviewer]

I want to ask a couple businessy questions. One is, you have a partnership with Blue Origin. How are they helping you build these space habitats?

[Tom Weiss]

So we build all the habitats, we build all the technology associated with the space infrastructure. We provide that to ourselves because we're building a Pathfinder station that we intend to have up in just a few years. But we also provide that as part of our partnership with Blue Origin for Orbital Reef. Orbital Reef really scheduled sort of in the 2030. We're moving even faster than that because my concern is that if the ISS deorbits early. Right. I want to make sure the United States does not have a gap in low Earth orbit. So we focus a lot on taking our same tech and applying it to our Pathfinder Station. And we also apply that to our partnership with Blue Origin for Orbital Reef.

[Interviewer]

Sounds like you have a pretty busy schedule. You want to go public as a company, why do that? What's that going to allow your company to do?

[Tom Weiss]

Well, see, we focus a lot not just on technology for technology's sake. We are a company that is really doing fundamental great work that leads into a high revenue growth rate, high net income growth rate. We kick off a lot of free cash flow. And so going in from a private into the public markets gets us access to public market capitalization. But we do it in a way where we'll enter the public markets as a company that has free cash flow. Positive EBITDA positive. We don't just say we're going to have this hockey stick growth. We proved it year after year that we've doubled in size. And so I think the capital markets will reward us for that. And therefore we'll have capitalization that comes with it. And so we'll time it right. As you can imagine, when we first kicked this off in 2021, it seemed like every bank in the world was calling about doing us back. I had no interest in that. I wanted to derisk the business, de risk the portfolio, build a leadership team, build the capital structure of the business. You saw what we've got, significant capitalization with our series A and the first phase of B. And so now we're in a path through 2024. We've done all the work to make sure that we're public company ready. So when we enter 2025, we'll be the company that has a lot of trust both in the institutional and the retail investors. And I think we'll be rewarded for that.

[Interviewer]

I hope so too. Two final questions. One is, you worked on the James Webb telescope. Yeah, that's been out for about two years now. What have you been excited to see come from that work?

[Tom Weiss]

Well, you know, we built that telescope to be able to do several things right. We wanted to go back and look at the very first light from the very first star. That's 13 and a half billion years ago. We wanted to see, you know, fundamental science. You know, I met with Stephen Hawking once. It was just a brilliant afternoon, you know, just thinking about the origins of the universe. I mean it was all theoretical physics. And the James Webb's is proving some theories right, proving some theories wrong. I think it's been remarkable in terms of being able to find planets within that sort of Goldilocks zone. I think someday it will probably help us find life on distant planets. It's just remarkable. I mean if you think about we're this tiny little blue dot, everything we know, everything right, the great Carl Sagan quotes. And it's. What's really interesting is that this universe is not only expanding, it's accelerating its expansion and then it will collapse and do it all over again. And I think for the first time we're really starting to understand some really fundamental things about the universe through James Webb. Before then it was just a theory. Now it's backed up by data. And some of those theories are oops. Yeah, kind of cool really. You can see back in time 13 and a half billion years. Really? Because I always thought it was cool. I mean everybody that was working in exoplanet research or any of the cosmology, any of that stuff, but the day I knew that it was really meaningful is when I was walking in New York City and in Times Square on the big monitor was an image from James Webb. And people just stopped. They all stopped. And they looked up and they didn't necessarily know what they were looking at. I don't know that they were all the physicists, but it is a trip Right. It's like I'm just going on vacation for a year. Right. But I know that my family's here. I know I'm coming back. But what really drives us is the fact that we're not a company that's trying to affect the lives of a handful of people. We're not trying to give joyrides to a couple billionaires who want to spend a quick trip in space. Everything we do here is how do we affect the lives of a billion people? Whether it's cancer research, oncology, broadly leukemia, longevity, trying to figure out the next generation, breakthroughs and semiconductors. I think we're going to find new chemistry for batteries to even greatly accelerate the transition to electrical electrification. So I think of those things. And again, before we go off and buy another insurance policy to protect the human race by putting five people on the planet and try to regrow, I'm convinced that we need to do more here not to screw this place up.

[Interviewer]

Yeah.

[Tom Weiss]

And so far, we're doing a pretty good job screwing it up.

[Interviewer]

I think one of the reasons that we have a difficult time imagining this, this industrial age coming is because in many ways, it feels like space has kind of almost moved backward from the 60s when people were on. On Mars. And now there's, sorry, the moon. People were on the moon. I was talking moon, Mars, same letter.

[Tom Weiss]

Very different place, slightly different.

[Interviewer]

But it's in some ways difficult to imagine. Like, it's difficult to imagine people living in space when we're not going to the moon anymore. And it seems that NASA has shut down the shuttle program and shut down a lot of the. Even the space station coming up. I've heard you compare it to the birth of the railroads in low Earth orbit. Why should people be excited about the future of space and even the next three, five, ten years?

[Tom Weiss]

You know, it's a very insightful question because I grew up in the 60s and, you know, I was the classical young kid glued to a black and white television set in my grandfather's living room watching the Apollo program. It inspired me to be an engineer, but inspired me to do really hard things that were meaningful.

[Ricky Mulvey]

As always, people on the program may have interests in the stocks they talk about. The Motley fool may have formal recommendations for or against. So don't buy or sell stocks based solely on what you hear. All personal finance content follows Motley fool editorial standards and are not approved by advertisers. Motley fool only picks products that would personally recommend to friends like you. I'm Ricky Mulvey. Thanks for listening.

[Interviewer]

We'll be back tomorrow.