James believes that the tech company he will detail on Sunday is the key to Elon’s future plans for SpaceX – and James’ #1 space industry insider has put together a “SpaceX Deep Dive” detailing exactly what he believes Elon’s planning, post-IPO.
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If you don't know me yet, my name is James Altucher.
Nearly two years before SpaceX became the biggest IPO in history, I went on camera and told anyone who would listen that Elon Musk was about to break every record on Wall Street with what I called a "SuperIPO." Most people thought I'd lost it.
That video now has close to 20 million views. And in June, Elon proved me right.
This isn’t the first time something like this has happened, either...
Back in 2007, I predicted Facebook would become the world's first $100 billion tech IPO. In 2011, I said Apple would be the first trillion-dollar company. After that in 2013, when Bitcoin was trading at $114, I told people it was going to change the world.
Each time, very few believed me. Every one of those calls came true.
I've spent 25 years working in artificial intelligence, going all the way back to the early version of the IBM machine that beat world chess champion Garry Kasparov. I started and sold two tech companies, ran an AI-powered hedge fund on Wall Street, and I've sat down with folks like Peter Thiel, Mark Cuban, and Ray Dalio on my podcast.
So when I tell you the space economy is about to mint a whole new class of winners, I'm not guessing.
Now, here's why I'm writing to you today,
When SpaceX rang the bell in June at a $1.77 trillion valuation, it didn’t just make Elon the world’s first trillionaire, it put a trillion-dollar stamp of approval on space itself, an industry most investors had never once thought to look at the way they look at tech or biotech or energy.
And I believe that Elon is just getting started. To accomplish the goals he has with SpaceX, and even further with Tesla, X, xAI, and more, he’s going to need to do some shopping.
And this isn’t even speculation, SpaceX has already told regulators in its own IPO filing that it’s sitting on more cash than any company in history and will be looking into acquisitions.
That being said, I wanted you to understand the doctrine that’s now reshaping who wins in space before the rest of the market catches on.
So I brought in the person I trust most to walk you through it: a close friend and colleague who’s one of the most connected people I know in the space industry, someone who’s spent decades investing inside the biggest names in tech and aerospace, from semiconductors to biotech.
In fact, he was in the room when Elon first announced his plans to take SpaceX public.
Now, I can’t tell you his name yet.
But what I can tell you is that, when it comes to reading where space is headed next, there’s nobody whose read I trust more.
Because of his current position in the industry, he’s asked to stay behind the scenes for now.. I have much more to share on this, I’ll be revealing all I’ve uncovered this Sunday, August 2nd at 7:00 p.m. EST. So make sure you block some time on your calendar to tune in.
In my presentation, I’ll also include more info about my colleague you’re about to hear from. Until then, consider this your first look at how he thinks.
So I'll step aside and let him take it from here.
In June, SpaceX went public at a $1.77 trillion valuation, raising $75 billion. That makes it the largest IPO in history by a wide margin. The moment that bell rang, the entire space economy got its trillion-dollar stamp of approval.
Think about what SpaceX actually is for a second. It launches the majority of the world's payloads into orbit. Its Starlink network pulled in more than $11 billion last year and now serves over 10 million customers across 160 countries.
And after folding Elon's AI company, xAI, into the business, SpaceX now runs three engines at once: rockets, satellite internet, and frontier AI. That combination has almost no real competition anywhere on Earth.
The IPO also did something no company has ever done for its founder. It made Elon Musk the world's first trillionaire. The offering alone added more than $180 billion to his fortune in a matter of days, pushing his net worth past $1 trillion and making him worth more than Jeff Bezos, Mark Zuckerberg, and Warren Buffett combined.
So today, Elon is sitting on one of the largest piles of cash and firepower in corporate history. And in its own IPO filing, SpaceX flat out said it may pursue additional acquisitions to build the business out.
But before talking about acquisition potentials, I want to show you what I believe is next for SpaceX. There are three developments in motion right now that almost nobody outside the industry has fully connected.
Let’s dive in!
First, we’ll start with the part of the business that's already generating cash.
To train its Grok AI, xAI built a supercomputer in Memphis called Colossus, one of the largest and fastest-built AI data centers on the planet. For a while, it was a money pit. The AI side of the business was bleeding billions while Starlink footed the bill.
Then Elon flipped the model. Instead of just using that compute himself, he started renting it out to some of the most high profile customers in tech.
Anthropic, the maker of Claude and one of the top AI labs in the world, agreed to pay SpaceX $1.25 billion a month to lease the entire output of the Colossus 1 data center, locked in through 2029.
Google signed on next, at $920 million a month starting in October and running through the same window.
An open-source lab called Reflection AI committed roughly $6.3 billion. The coding company Cursor came aboard too. And just this month, The Wall Street Journal reported that the Pentagon is in talks with SpaceX for a compute deal of its own, potentially worth billions more.
Between just the Google and Anthropic contracts you're looking at roughly $26 billion a year in compute revenue, from two of the best-funded companies in technology. A business that was a drag on SpaceX a few months ago is turning into one of its biggest profit engines.
Here's where the story goes from impressive to bordering on science fiction.
Elon's answer to the biggest bottleneck in AI, power and cooling, is to move the data centers off the planet entirely.
It makes sense on paper; in orbit, the sun never sets and there's an infinite heat sink in every direction.
The vehicle for that is a satellite SpaceX calls AI1. The genius of it is how simple it is. Take a Starlink V3 satellite, strip out the broadband antennas that make it complicated, and bolt a rack of GPUs onto what's left.
Musk has said it's actually simpler to build than a regular Starlink satellite, using the same solar, cooling, and laser-link technology the company already produces. Each AI1 is essentially one Nvidia GB300 rack, the most powerful AI hardware money can buy, floating in space.
And this isn't a slide deck. The satellite rides on the Starlink V3 production line that's already running, and SpaceX has already begun flying those V3s on its Starship rocket and bringing them back down as planned.
From there, Musk is targeting a gigawatt of computing power in orbit per year by late 2027. Then, the plan is scaling it roughly tenfold year after year toward ten gigawatts, a hundred gigawatts, and ultimately a full terawatt.
To put a hundred gigawatts in perspective, that's on the order of 800,000 of today's top-end server racks, in orbit.
The only real constraint is chips, but Elon is building his way around that too through a project called Terafab, a chip mega-factory run jointly with Tesla and aimed at producing a terawatt of computing power a year, with the lion's share of that advanced output earmarked for space.
Rockets to launch it, satellites to carry it, chips to power it, and the AI models to run on it. Elon is uniquely positioned since he owns that entire stack.
Here's the third piece, and it may be the nearest-term catalyst of them all.
On Tesla's earnings call last week, an analyst asked Elon point blank whether he would merge Tesla and SpaceX. He didn't say no. He said there was "more and more overlap" between the two companies, especially around Terafab, called it a gigantic project, and then said a combination simply couldn't be discussed on an earnings call and would have to go through the appropriate process, before handing the question to Tesla's general counsel.
Terafab is a joint venture, Tesla's Grok AI comes from SpaceX's xAI, Starlink is being built into the Cybercab and, eventually, every Tesla.
The two are collaborating on Digital Optimus, the training brain behind Tesla's humanoid robot, and on a compute system Tesla calls Megapod, which Musk has described as a "Digital Optimus in a box" you can set down just about anywhere. Musk has flatly said Tesla can't scale its Optimus robot without Terafab.
In other words, the functional merger is already underway. One respected analyst who covers both companies put the odds of a formal combination at 90% right after that call. If it happens, it would create a single orbit-to-ground AI powerhouse and reshape this entire corner of the market overnight.
Now, this look into the future of SpaceX is just a taste of what we’ve been working on...
We've got something even bigger planned… Which is why I can’t stress enough how important it is that you join me on Sunday, August 2nd at 7:00 p.m. EST.
I believe the first step in Elon's plan is to buy a specific tech company that was just pinpointed by my AI-powered Buyout Indicator System. And this move could hand you a massive gain before the end of the month.
This buyout could become the biggest story of the year… and we're covering it all Sunday night at 7PM (ET).
You’ve already taken the first step by signing up for VIP text alerts. Now that you’re on my list, you’ll receive every piece of information that you absolutely need to know leading up to Sunday’s Emergency Briefing.
This is something you can’t afford to miss, we’re at a pivotal point in the market right now and this information I’m getting ready to share could have a major impact on your wealth.
So keep an eye out.
I’ll be reaching out to you again soon.
Sincerely,
James Altucher