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Jim Chanos asserts that SpaceX recently pivoted its XAI strategy from developing proprietary models to leasing compute capacity to firms like Anthropic and Google, a model he calls 'NeoCloud'.
Jim Chanos states that the 'NeoCloud' business accounts for over $22 trillion of the $29.5 trillion Total Addressable Market (TAM) cited in SpaceX's prospectus.
Jim Chanos claims that SpaceX's Starship rocket has not yet achieved Earth orbit in 12 missions.
SpaceX's IPO was priced at $135 per share, with the opening trade at $150 per share.
SpaceX stock opened at $155 a share, representing an immediate gain of approximately 11% from its $135 IPO price.
Jim Chanos predicts that 2026 will see record-breaking levels of equity issuance, including IPOs from companies like OpenAI and Anthropic, with the SpaceX offering leading this trend.
SpaceX's opening market capitalization was just under $2 trillion, making it more valuable than Tesla, Saudi Aramco, and Meta.
SpaceX has a strategic ambition to establish data centers in space by 2028.
Mandeep Singh questions SpaceX's $2 trillion valuation, noting it is 30% higher than Meta's $1.5 trillion valuation.
Jim Chanos states that SpaceX acquired XAI in February for $250 billion in stock, and the market is now valuing that entity at over $1.5 trillion.
According to the latest Social Security trustees report, the program's old-age benefits fund will be unable to pay full benefits starting in 2032, resulting in an automatic 22% benefit cut if no legislative action is taken.
The combined Social Security trust funds for old age, survivors, and disability are projected to be unable to pay full benefits starting in 2034.