Ed Ludlow

But in short, it's effectively tidying up the balance sheet, putting different pieces of equity into different boxes.

Tesla's investment in XAI has been rolled over into SpaceX.

Some of the early investors who've been with Elon for a long time across different companies, those like Valor and DFJ, have also had their stakes in SpaceX slightly increased as part of these changes.

It's all designed to make your equity term sheet look a little bit more normal as you approach the IPO process, which we still expect to happen this summer or into the autumn.

Okay, Bloomberg's Karl Porter, part of the team that's done a lot of reporting on, I guess, mechanics of what's happening with SpaceX ahead of an anticipated public market debut.

Let's get an investor's perspective on all of it.

Peter Singlehurst leads the private companies team at Bailey Gifford, an investor in SpaceX, but other names that I guess we've talked in the context of being potential blockbuster IPOs down the line.

Anthropic is another example.

Peter, welcome back to the show.

I think it's the first time we've had the opportunity to speak since SpaceX acquired XAI.

And I guess just what's your reaction to that?

How you guys felt about it, the interpretation of the rationale behind it?

I think when you step back and you consider what has made SpaceX such an incredible business over the last 10 years, it's their ability to drive down the cost of launch.

It's the deflationary nature of their business.

And when you look at other hardware categories where we've seen that historically, such as Moore's Law in transistors or Flatley's Law in genomics, when you drive down cost by orders of magnitude, it opens up

phenomenal un unforeseeable use cases um and we're seeing that in the domain of space now starlink has been the first application of that and we think there's a stateable case that data centers in space could well be the next application that opens up as you drive down that cost of launch now it's early days for that it remains unproven but if that is

to be something that is feasible, being vertically integrated into an LM model such as the Grok model will be an advantage for SpaceX.

At the time that the news came that SpaceX would acquire XAI, we did some reporting that essentially XAI operates as a subsidiary of SpaceX.

In part, there's also ITAR considerations, but there's also XAI's financial situation, which is the debt burden and its rate of cash burn.

How did you feel about SpaceX taking on that balance sheet, essentially?