Dear Reader,
This is Dylan Jovine with Behind the Markets.
Happy Thursday. Today is Thursday, June 18th.
We have a webinar at 1:00 today and I'm very excited about it.
Here's why.
$7.6 Trillion
Goldman Sachs put out a report last week adding up all the targeted planned spending on compute, data centers, and power through 2031.
Their number: $7.6 trillion.
That's bigger than the entire U.S. federal budget, which runs about $4 trillion a year.
That is the reindustrialization of America happening in real time.
And SpaceX is right in the middle of it. When you read Elon's S1 filing, it becomes very clear that SpaceX isn't really a rocket company anymore. It's a holding company for AI. The rocket business is profitable, but let's be honest — how many governments and corporations need giant satellites launched into space? It's a great margin business. He's using that cash flow to fund something much, much bigger.
The Five-Layer Cake
We talked about this yesterday, but it's worth repeating because it's the frame for everything.
AI is a five-layer cake.
Energy at the foundation, because every great technology revolution in history is an energy revolution at root. Think coal for railroads, gasoline for cars, the explosion in power consumption that came with the internet. Chips sit right above that. Then infrastructure — data centers, AI factories, the physical backbone. Then models: Grok, ChatGPT, Claude. And at the very top, the application layer, where economic value is actually extracted.
Elon is building all five layers himself. Energy with gas turbines and a power plant he had shipped in from overseas. Infrastructure with Colossus. Models with Grok. Applications with Cursor. The one missing piece is chips.
And he has a $25 billion reason to move on that before December 31st.
What This Looks Like When Capital Floods In
When money pours into infrastructure at this scale, history shows what happens. Cisco owned the pipes in the nineties and the stock jumped 67,000%. Qualcomm ran 10,000%. Every company sitting at the right layer of the right build-out just soared.
$7.6 trillion is looking for places to go. We think we know where some of it lands.
Join Us at 1:00
Today at 1:00 PM, Charles and I are going to walk you through Elon's chip plans in depth and show you the opportunities we think are still undervalued right now.
At the very least, you're going to learn something. I hope to see you there.
“The Buck Stops Here,”
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Written by Dylan Jovine