Josh Brown + Aaron Dillon >> SpaceX overview, Starlink IPO, revenue forecasts ; OpenAI governance, CEO changes, latest drama | The Compound and Friends – Nov 21, 2023

This Week in Pre-IPO Stocks

Full TCAF episode = https://podcasts.apple.com/us/podcast/sam-altman-and-openai-spacex-and-starlink-nvidia-earnings/id1456467014?i=1000635616090
01:31 | SpaceX overview, Starlink IPO, revenue forecasts
- SpaceX is a space payload delivery and satellite interne business. They have developed reusable rocket technology, significantly reducing the cost of space missions.
- SpaceX payloads typically include resupplying the space station, deploying satellites, and transporting astronauts.
- A significant portion of SpaceX's revenue comes from government contracts, including a substantial deal with NASA and projects for the U.S. Space Force.
- SpaceX is projected to be a $41 billion annual revenue business in five years. This growth is largely attributed to the success of Starlink.
- Starlink, SpaceX's satellite internet business, is expected to generate $10 billion of the projected $15 billion revenue in 2024. With over 5000 satellites in space, Starlink aims to provide global internet coverage.
- Starlink is becoming popular due to its ability to provide reliable internet service in areas with poor connectivity. Its partnership with T-Mobile to connect phones directly to satellites in areas without cellular service.
- There's speculation about Starlink potentially spinning off from SpaceX and going public, possibly in 2024 or 2025. The business is already profitable and growing rapidly.
16:00 | OpenAI governance, CEO changes, latest drama
- OpenAI was valued at approx. $30b just a few months ago and is currently in a tender offer valuing the company at $80b to $90b
- The breaking news surrounding OpenAI and Microsoft has been surprising and is still evolving. Satya Nadella, Microsoft's CEO, is ripping out tweets at 2:30am.
- It takes about five years to develop a large language model like OpenAI, along with significant capital investment (around $2 to $5 billion).
- OpenAI's existing large language model, GPT-4, is highly regarded in the tech community.
- Developers consider OpenAI's new solutions for developers to be game-changers.
- Anthropic, another AI company with a focus on AI safety first and significant investment from Amazon, is growing rapidly and gaining investor attention despite leading with an AI safety-first model. This serves as a proof point that a safety-first approach doesn’t necessarily hinder business growth and investor interest.
- The current situation with OpenAI's board and executive team will get resolved soon, providing more clarity on the company's future trajectory.