Breakaway - Investing & Finance
Breakaway from the haters and mainstream thought. Learn about Investing, Finance and the Economy in a plain english and entertaining way. Understand the business environment and make money investing. Uncertainty in the markets driven by crisis, anarchy, politics and craziness is simply opportunity. Facts and truth here.
Breakaway - Investing & Finance
SpaceX, DataCenters, AI, Markets
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Open
Golf tourney tomorrow
Choking.
- Heimlich maneuver
US Bank Fees
- $12.50 per $50. That is 25% instantly
- So $1000, is 20 * $12.50 = $250. + interest.
- More than 1,100 University of California math and science professors are urging UC regents to reinstate college-entrance exams, saying that unprepared students are lowering academic standards and draining teaching resources.
- Today, more than 90% of schools don’t mandate the exams, Feder said.
- Welcome to real life Scott Pelley. New boss, new style. Work or walk.
Recommendations:
- Bill Ackman
- Sara Frier Finance folks should know Codex (previously Excel)
- Panthalassa
Markets:
Huge correction today. Tech down 5%+ and S&P500 2.6%.
- The losses intensified after a robust jobs report raised new worries that the Federal Reserve may need to raise interest rates later this year to fight inflation.
S&P 500 still up 27% and tech 40-60% YoY.
Huge IPOs coming:
- SpaceX
- Anthropic
- OpenAI
Cash. Think about your cash investments.
- Cash is nice
- Owning your home is nice.
AI & Datacenters
- In May, Anthropic raised $65 billion in new funding from investors including Greenoaks, Dragoneer, Altimeter Capital and Sequoia Capital, in a round that valued the company at $965 billion. At the same time, the company said its revenue run-rate had surpassed $47 billion, up from $9 billion at the end of 2025
LLM usage
- Grok: no bueno. Grok and Spreadsheets. Oh my.
- Gemini. Good.
- Claude: BEST.
- BTW, OpenAI was suspiciously very negative on SpaceX.
SpaceX
- Going public ~June12. Next Friday!?
- $75b raise at $1.75T valuation.
- Float is ~4-5% of total shares
- $10-18b must be purchased by index funds.
- More coming out in next 6 months. Employee lockups. Cap table investors want liquidity.
- Great detail here from Alexandra
IPO Education
- Hire IB’s.
- Allocate to VIPs and whales. 5% to retail.
Valuation
Over-valued? Valuation is highly relative to time!!!??
- $135 price. $300 price?
- Either way 10-20x in 10 years. Not investment advice.
AI Opportunity
SpaceX is becoming an AI infrastructure play!!
Another Rental of Compute from Google to SpaceX. Anthropic and Google are now paying @SpaceX a combined $2.17 billon per month for compute capacity. That's a revenue run rate of $26 billion per year. BIG MONEY.
Jamie Dimon Interview of Elon.
Elon and Dimon Another link here from
- Why SpaceX public now.
- Play at 4:00min mark: Why fundraising.
- Embarking on significant growth phase.
- 100,000 satellites. BTW. Why are datacenters hard if already doing satellites.
- 100x more bandwidth and ½ latency for v3.
- He just said that Starlink will be highest bandwidth and lowest latency or ANYTHING!!
- AI Datacenters in space. Massive capital endeavor.
- Hard to build power in the US or on land.
- US usage is 500GW. To double. Would need to 2x # of power plants.
- BUT if in space can go far beyond Earth
- Manufacturing on the moon and building beyond 1000TW per year of AI Space Compute
DataCenters in Space
- Easier than their communication satellites.
- AI datacenter is EASY
Elections: