Dear Reader,
This is Dylan Jovine with Behind the Markets.
Happy Wednesday. Today is Wednesday, May 27th.
It's almost hard to believe the month is nearly over. Is it me, or does time move faster the older you get?
First things first — thank you to everyone who attended the webinar yesterday.
And if you missed it, make sure to watch the replay here now.
Charles and I were talking about it afterward and we're just genuinely grateful that other human beings take time out of their lives to spend time with us. I'm humbled by it. The day I stop being humbled by it is the day you should stop listening to me.
Now onto today’s topic.
Space Will Be the New AI by 2027
I was listening to Walter Isaacson — Musk's biographer, very smart guy — and he said something that stuck with me.
"Space will be the new AI by 2027."
I think he's right.
Maybe not the new AI exactly, but the new new thing. The next frontier that everything else starts to organize around.
And it has to be.
Why the Moon Matters
I know a lot of people roll their eyes when they hear we're going back to the moon.
Who cares about the moon?
Here is who cares: every military strategist on the planet.
The moon is the ultimate high ground.
Right now, both the US and China are racing to establish a base there — and I wish that weren't the case, but it is.
Here is why it matters.
Satellites determine the future of warfare.
Everybody is trying to figure out how to knock out the other side's satellites — missiles, electronic weapons, you name it.
But if you have assets on the moon, you are closer to those satellites.
You can resupply. You can operate. You have the high ground.
China understands this.
We understand this.
And SpaceX has finally made it economically possible to do something about it for the first time in history.
The Old Satellite Business vs. The New One
When I started on Wall Street in the nineties, there was always some satellite company with a great idea and a miserable balance sheet.
Iridium. This one. That one.
They'd borrow enormous amounts of money, launch their satellites, and go bankrupt every five to seven years.
The economics never worked because the rockets weren't reusable.
Every launch was a one-way ticket.
SpaceX completely changed that math.
Reusable rockets brought the cost of getting to space down dramatically.
That is what makes the new space race different from every previous attempt.
It's my favorite Elon Musk business accomplishment — SpaceX — no doubt about it.
Speed, Speed, Speed
As we talked about on yesterday’s webinar, the key to all of this is speed.
The closer your assets are to each other in space, the faster the data moves between them.
The faster the data moves, the faster your military can act.
The military that acts fastest wins.
This is not a new lesson.
Teddy Roosevelt said it. Reagan said it.
You want to prevent war?
Carry the biggest stick.
It's schoolyard rules.
Nobody picks on the kid who does judo.
The way America stays safe — the way our kids grow up in a world where no country gets to dictate our trade deals or muscle open our markets — is to maintain the most powerful military on earth.
And right now, the most powerful military on earth is one that controls space.
Why We Featured This Company on the Webinar
The company we discussed yesterday is already partnered with the Space Force, with one of the largest satellite companies in the world, with Nvidia, and with Intel.
They are in the right place, with the right technology, at the right time.
That is why we featured them.
That is the thesis.
If you missed the webinar, make sure you watch the replay here before we take it down.
Anyway, that's all I have for you today.
Have a wonderful day.
I will see you tomorrow.
“The Buck Stops Here,”
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Written by Dylan Jovine