Gene Munster Says SpaceX Is the Only Sovereign AI Company and Should Be a “Core Tech Holding.” Time to Buy While It’s Below $150?
Two months before the massive $86 billion raise from the Space Exploration Technologies (NASDAQ: SPCX) IPO, former Apple analyst and co-founder of Deepwater Asset Management Gene Munster said in an investor note that SpaceX was “the only entity in the world building sovereign AI.” That phrasing does not imply that Munster thinks SpaceX’s AI will rule everything, but rather that the company is building and owning all the artificial intelligence software and hardware it would require in such a way that essentially no other company could bottleneck its progress
Munster is bullish on the company for this reason, and he said recently that SpaceX should be a “core tech holding” for investors. So, should investors follow his opinion and buy SpaceX now? SpaceX is doing something not even Google has pulled off Munster’s definition of sovereign AI in SpaceX’s case is an infrastructure consisting of its rocket launch capabilities, its Grok AI model, its Starlink satellite broadband service, and its planned Terafab semiconductor foundry.
That combination of assets gives SpaceX an AI edge that not even Alphabet can match (since the Google parent can’t launch its own orbital data centers into space). As Munster said in the investor note, Alphabet must rely on the chip manufacturing capabilities of Broadcom and Taiwan Semiconductor (also known as TSMC), and it doesn’t have an in-house rocket launch operation: Google still relies on external fabrication (Broadcom/TSMC), doesn’t own last-mile network delivery, and lacks a launch vehicle to deploy infrastructure off-world. SpaceX’s potential advantage over its AI competitors hinges on a couple of important things, though.