Chanin: SPCX Starship Shows “Tremendous Opportunity” For AI, Space Infrastructure

investing. I'm Alex Cohen. Let's welcome in Andrew Chanin,f Procure Asset Management, here to d some space. Andrew. Big milestone reached it took him a few tries but it seems that With hiccup as my understanding as well, did achieve something prett important here. I'll leave it relatively open ended.hat did you take away from this recent launch and what does it mean no? Each iteration of these test launche been more impressive than the previous ones. Obviously, I think the hiccup t you're referring to was some some engine troubles, wh why they shortened the the orbital part of the of this of this mission and bringing the rocketk down to, to splashdown a little bit earlier than, than typically they would hoped for. However, the deployment of these versionthreo orbit were extremely sful. And it's setting up a really powerful, compelling story for Sp into the future. And to the extent that they can get some importantrnings from this, from these previous hiccups and get rid of them in the f This is nothing but exciting for SpaceX, as well as for broader space economy. And what else could be possible when you drive down the cost of launch. Andrew. I think this is always a fun conversation, but ca be a difficult one when you're trying to perceive and understand something that hasn't been d b From an investment opportunity standpoint, we sort of have two major ones happening at once, right? And this is a company that's sort of front ater for both. One, the AI uncertainties and what's le on that front. And then this space opportunity, which course is the bread and butter for space ax. You mentioned the satellites that they got up there, the V3S for Starlink in the interim. So let's say, you know, now is the Starlink opportunity the greatest one from your ctive? I mean, the Starlink opportunity is one that is generating revenues real time to the extent that they could send up one satellite that has the capabilities of ten version twos. You can see how they can really scale this. And so as they bring these new satellites online, as they, you know, push forward utilizing Starship and hopefully significantly reduced costs per satellite, you know, it's truly a tremendous opportunity. And so, you know, they can bring in new customers, they can bring in, yw, new technologies. They want to create more, you know, starships. They're building out their, their, their presence in Louisiana, whiche win that was probably under the radar to, to most. But somethhat we wer looking at prior to that announcement, you know, they're doing a lot of really important things. And what we notice is this is a company that has this long term vision. Not every company is afforded that opportunity, but they this long term vision. They do what many think seem to be impossible. But asy build out this infrastructure, they're able to do so much more on top of that. S not just what they're able to do now and demonstrate now, but it's how they'll be able to utilize that infrastructure to build out whatever their next goals may be. And I'm guessing since this is sort of still in that sort of test phase, at least there's confidence. But, you know, it's the first time they've completed it. There's opportunity for them to scale this up rather quickly in terms of, you know, maybe the freque even just how many mission. understanding isa not only are the satellites much more robust, and they can achieve much more than the version twos, but the new ship can also carry more than the old ships. ExaAnd so this most recent test flight, you know, they only used about a almost 50% of the payload. So you can imagine, you know doubling that capacity with each satellite being ten times more pow And, you know, it's truly something that I think people are scratching their heads. I mean, when we first launched UFO back in 2019, there were roughly 2000, 2500 operational spacecraft in low earth orbit. And now just looking at what SpaceX is doing alone, you know, it's, you know, putting multiples onto thatnumb, they filed, they applied to be able launch upwards of about a million of these AI satellit a constellation. So that, you know, SpaceX alone is starting to, to really take up a lot of space in low earth orbit. that's also going to force other companies to try to bring their capabilities d earlier, as low earth orbit starts to get a little bit more a little bit more terede who's, you know, focused on this space and thought about it from not only, you know, an investment ptive,portfolio manat perspective, you know, when you think about space X, I think it goes without saying it's the industry's leader of the space economy, but how close is anybody? Is it even c between 1 and 2 in terms of of where these companies are? I mean, looking at it as a company by company basis, I mean, SpaceX is trying to do and is much further along in arr rivals that, you know, their their main rival might be China at this point. So, you know, their China's ability try to reiterate the technological successes that SpaceX has demonstrated is something that they're showing with their vertical landing capabilities now as well. So, you know, SpaceX kind of itself up as as a leader in many different areas of the space economy. And then you have others that try to to replicate their s.you know, ultimately, though, SpaceX space success isn necessarily just their success because to the extent that you can get items intoow earth orbit for, you know, $200 or less, youknowr kilogram, I mean, that's absolutely tremendou the amount of companies that can say, hey, you know what? Maybe my ideas and technologiesight be economically viable at this low cost of launch. Let's give h more innovation and ideaso this, to this industry as as we move forward. Final one I for you, and this is the, I guess the opposite side of the equations, I guess, argument that resonated with me best, which is just the starting point from a m capitalization being so high for Space like for it to go ten're somewhere in the, you know, the 10 to $20 trillion ran potentially for this company. Is that going to be the one thing that holds it back from a public ient standpoint is just simply that it started from from from such a succe point. I mean, if you're looking for reasons to knock apany, then, you know, sure, throw, throw anything at it. But, you know, ultim you know, this company has such large ambitions, it's already extremely critical to the US government, US military andbeyo, what i valuation of at you kno company that gets to Mars first and starts building out infrastructure there? How do you even quantify that value?dst they're talking about. What happens if SpaceX is the compan that figures out best how to capture solar energy and space and beam iown to earth? You know, there's so many major projects, A t they've disclosed that they're working on and B, that they could be working on or in the future could decide to pivot towards that, that we're talking about, potentially multi-trillion dollar opportunities in the years ahead. So to the exten that they're that they're keeping their head down, they're focused on the missions that they have in frontf them, but simultaneously building out the infrastructure to take on many other challenges that that could be very lucrative in the future. We don't know exactlywht this moment, but the areas that they can position themselves due to their vertical integration and their capabilities of sustaining so t, plus also doing this for, for other, you know, numerous clients around the world. I don't think we really understand what SpaceX ing to become just yet. And I think that's part of, you know, the, the bull bear debates that you'll probably have with this company forever, but truly trem what they're trying to achieve. And I think most of for their success. Yeah. No, Ig think that that argument resonates with many. And I appreciate the thoughts and you taking the time andng us here today, Andrew, really appreciate it. Andrew Chanin, CEO and co-founder of Procure Asset Management. Coming up next. We're not goingo look that far. Another kind of space name in the case of Boeing isthy