SpaceX IPO explained in the simplest way possible

About this video

Sam and Shaan break down SpaceX’s record-breaking $1.75 trillion IPO, exploring the company’s core businesses (rockets, Starlink satellite internet, and AI infrastructure), Elon Musk’s audacious vision, and whether the valuation makes sense. They dissect the company’s financials, future bets on Starship and space data centers, and discuss the wealth creation rippling through the ecosystem.

Key takeaways

• SpaceX is actually three companies stapled together: a rocket launch business (85% market share), Starlink internet (11B revenue, high margins, recurring), and an AI/computing business (XAI, Colossus data center renting to Google and Anthropic for ~$1B/month each). Twitter is the ‘footrest’ that hasn’t worked out—ad revenue is half pre-acquisition despite new subscription revenue.
• Shaan notes the valuation hinges entirely on believing Starship works, data centers in space are viable, and Starlink grows to $30-50B revenue. If those bets pay off, SpaceX could become ‘Saudi Arabia of compute’—the lowest-cost provider of AI inference in a world that will run on computation, similar to how the world ran on oil.
• Elon owns 42% of SpaceX after 20 years and controls 85% voting power—rare founder control for a capital-intensive business. The company’s adjusted EBITDA accounting is aggressive (adding back depreciation, stock comp, and even Bitcoin losses), making traditional valuation metrics unreliable. Sam compares it to Charlie Munger’s likely verdict: ‘a wonderful business at a silly price.’
• The IPO will create ~4,000 new millionaires including cafeteria workers with stock options. Ontario Teachers Pension Fund’s 2019 investment will generate ~$33,000 per teacher in the fund. Major early investors like Antonio Gracias (7% stake, ~$90B gain) and Gigafund’s Luke Nosak (who backed every Elon company) demonstrate the power of picking the right founder and holding—a lesson that beats sophisticated strategy.

Episode details: published June 12, 2026 · 34K views · 1:06:01 long. Summary written by Self Growth Videos from the episode itself. The business ideas, figures and results discussed are the hosts’ and guests’ own claims, shared as brainstorming and entertainment — not verified facts and not investment advice.

← Previous: Lloyd Blankfein’s Retirement Portfolio Got Him Roasted Live · Next: Ex-Goldman CEO told us exactly where he puts his money →

All My First Million videos · My First Million profile · My First Million (official site)