Nicolas Owens

In a way, I'm indifferent in my forecast between whether they get more subscription revenue for Grok or more rental revenue from Anthropic.

They're one of the handful of AI companies that own that infrastructure.

Anthropic does not, right?

They don't own a data center.

And so they have to go out and rent it.

And that's just, let's say, I think a validation that

SpaceX through its AI division is one of a small number of the AI companies that owns its infrastructure.

And this vertical integration, owning all your stuff, owning the whole stack is very much a part of the SpaceX strategy.

And they kind of proved it out in the original rockets and satellites business model in that they use their own rockets, which are lower cost than anyone else's to launch the Starlink satellites.

and they do so sort of frequently.

I mean, the vast majority of the payloads that they brought up are their own satellites and they sort of, they charge themselves like the, you know, the friends and family discount for, you know, they get it at cost, so to speak.

So they have an even bigger cost advantage in that market, which we give them a narrow moat rating because the characteristics of those two businesses are so strong and they're so far ahead.

And that may, in one scenario, kind of extend out into AI.

If the GPUs in space with free solar heating and arguably free cooling is incrementally cheaper than the data center on the ground, that could be the way that this business plan sort of proves out and extends the same strategy of vertical integration, if that makes sense.

I agree.

I wouldn't say game changer.

So two things.

Yes, they are using equity to do the deal.

So would I.

That's the, let's say, most efficient currency for them to use right now, especially if you believe, as I do, that it's overvalued.