Jeff Lawson

The profitable rocket maker is set to merge with the AI startup, which is what he calls burning billions as it races to compete with other AI players.

All of this comes as SpaceX, that you're looking at now, is expected to IPO later this year.

Today, DreamWang Intelligence

has launched coverage of the combined entity and says the merger, along with the planned IPO, could help fund investment in larger launch vehicles and space-based data centers, as new reports suggest the IPO could value the company as much as $1.5 trillion.

For more, we're going to bring in a dream team.

New Meg Intelligence Roundtable.

George Ferguson, Senior Aerospace and Defense Analyst.

And Mandip Singh, Global Head of Tech Research, has been thinking about the Tesla implications.

George, we start with you on SpaceX.

How much is it a burden or a help to be now aligned with XAI?

Because it's certainly cash burning.

Meanwhile, you think revenues are what, up to the tune of 10 billion for certain parts of SpaceX, or if not more?

I mean, Mandeep will, of course, talk to it deeper.

But I think that AI business needs a lot more investment.

I think Musk wants to push it up in its competitiveness.

And so I think he put it inside this broader offering for SpaceX in order to help move some money that way.

Mandip, what's interesting in your research is you really compare and contrast how many individual users are going to a standalone Grok AI.

Not many, but there are plenty of us Tesla users out there who could be using it.

How much should they need to lean in to ensure that adoption is brought to bear in that respect?

With more guardrails as well, I might add.