Ronan Reid

Well, both need to raise money.

I mean, it's like science fiction reading SpaceX.

I mean, what's the money going to be used for?

It's going to be used to build the largest rocket ever seen, reusable rocket to launch, building out Starlink, which is how phones, Starlink is a satellite network that's much closer to the Earth than the old positioning ones.

And then obviously it's foray into AI for the forays it has X and Y.

It has Grok and a bunch of other companies and has talked about acquisitions in the space.

So the raising, it's significant and they'll come into the index, probably ranking behind the top five when they eventually do.

The top five being all tech companies in their own right who are all customers of each other.

It is, and the first two businesses, the one that launches satellites and the one that controls Starlink, the satellites, are highly... The current satellite business is very profitable, and I suspect the launch business will be very profitable.

Governments haven't been effective, and what they're raising money in part is something that effectively brings down the cost of...

putting every kilogram from whatever it is, $3,000 to $1,000 to build one of the largest spaceships.

So they're successful.

The AI part is much harder to figure, and you wonder if they're rushing out to get out ahead of OpenAI and Anthropic, who both come to the market simultaneously as well, or are rumored to be coming to the market simultaneously.

But it's losing.

I mean, its losses are predominantly arising out of AI.

It's estimated around $5 billion a year it's losing on AI.

Yeah, I think it could be certainly.

And it was interesting, other parts of Goldman Sachs talked down the market because they saw the draw that this is going to have on liquidity.

And as you mentioned earlier, passive funds could end up buying it because they are being fast-tracked into the index.

You used to have to trade for a year or whatever it was for a period of time, and then you'd be allowed into the index.