SpaceX is looking less and less like a rocket company.

I used to think of this when I bought SPCX:
🚀 Rockets
🛰️ Starlink
🌕 Mars

Now it’s getting more and more outrageous.

SpaceX’s CFO dropped another big announcement at a Goldman Sachs conference over the past couple of days:

The company just signed a new AI computing colocation customer that will contribute approximately $1.11 billion per month starting in December.

That works out to an annualized scale of about $13 billion.

One customer, $13 billion a year. 😂

Even more astonishingly, SpaceX is now targeting:

Reaching $100 billion in ARR by the end of the year.

My first reaction when I saw that was:

Wait…

Did I buy a rocket company or an AI infrastructure company?

Because SpaceX’s business now increasingly looks like:

Rockets + Starlink + mobile communications + defense + ground-based AI computing + future orbital computing

And Starship’s 14th flight is expected to take place this month. It is planned to carry the next-generation Starlink V3, and this will also be Starship’s first revenue-generating mission.

So I increasingly feel that the most interesting thing about SpaceX is no longer “how many more times the rockets can launch.”

It’s that Musk is stuffing the businesses SpaceX can reach, one by one, into the same infrastructure platform.

SPCX closed at $151.21 on Friday.

When the IPO was priced at $135 in June, the market was still debating whether it was too expensive.

Now that it has climbed back above $150, I’m actually not too interested in chasing it.

I remain bullish on the company.

As for the price… I still hope Musk gives me another chance to get in cheaply.

What do you think of SPCX now:

A: $150 is still cheap
B: It has risen too much; wait for a pullback

I choose B. 🐟