SpaceX has long been considered one of the surest bets in Elon Musk’s empire.
The firm dominates commercial launches, turned Starlink into a huge satellite internet business, and remains a key part of Musk’s long-standing goal of reaching Mars
That’s why a hypothetical SpaceX initial public offering would certainly see high investor interest. But veteran investor Steve Eisman sees a different tale unfolding behind the hoopla. The investor famous for betting against the housing market just before the 2008 financial crisis believes SpaceX’s future may depend more and more on artificial intelligence, and that could make the business considerably more expensive to support than its backers realize. “The valuation’s silly,” Eisman said, arguing that too much optimism may already be reflected in investor expectations.
SpaceX investors face a new AI spending question It’s simple to understand why SpaceX is so appealing. The corporation has a solid lead in rocket launches, and Starlink gives it a recurring revenue model that goes far beyond government contracts and one-off missions. That mix has helped make SpaceX one of the world’s most valuable private corporations.