Gavin Baker, managing partner and Chief Investment Officer at Atreides Management, has identified orbital compute as the next major profit driver for SpaceX, arguing that space-based infrastructure offers a significant cost advantage over Earth-bound data centers. Baker, an early investor in SpaceX, highlighted that a severe global compute shortage is intensifying, making the case for orbital infrastructure increasingly urgent. This perspective comes as SpaceX advances its timeline for demonstrating space-based artificial intelligence computing capabilities to late 2027, moving ahead of the "as early as 2028" deployment schedule previously disclosed in its initial public offering (IPO) documents.

Cost Advantages of Orbital Compute

Baker estimated that SpaceX's Starship, once fully reusable, would reduce launch costs to approximately $5 billion per gigawatt. This places the total cost of orbital compute at around $30 billion per gigawatt, compared to $60 billion for a terrestrial build. He noted that power, cooling, land, and infrastructure account for roughly $25 billion of a terrestrial gigawatt-scale build, expenses that are largely eliminated in space. While repair and maintenance remain challenges to be solved, the substantial capital expenditure difference presents a compelling financial case for the technology.

Strategic Milestones and Cloud Growth

Baker pointed out that SpaceX had no cloud computing business a month ago but is now, by some measures, the fourth-largest cloud provider, having surpassed Oracle. He cited a 55% internal rate of return (IRR) on the company's Colossus One data center as evidence that markets will support the necessary capital investments. Investors are advised to monitor three key milestones: terrestrial gigawatt capacity expansion, Starlink V3 deployment via reusable Starship, and orbital compute activation.

IPO Performance and Market Reaction

SpaceX completed its record-breaking IPO, priced at $135 per share, raising $75 billion through the sale of 555.6 million Class A shares. The offering surpassed Saudi Aramco's 2019 record to become the largest capital raise in IPO history. The stock closed its first trading day up 19.22% at $160.95 per share. As the company moves forward with its orbital compute ambitions, ETF issuers including ProShares, GraniteShares, and Defiance ETFs have announced plans to launch leveraged products targeting SpaceX's daily performance.

SpaceX has launched a new line of merchandise to celebrate its recent initial public offering (IPO), which valued the company at over $2 trillion. The offering includes apparel and accessories designed to commemorate the event, featuring the company's stock ticker SPCX. The IPO, which took place on Friday, also resulted in CEO Elon Musk becoming the world's first trillionaire.

New Merchandise Offerings

The SpaceX store now features several new items for fans and investors. Highlights include a "Liftoff" t-shirt priced at $45 and a "the future is public" t-shirt for $34. The collection also includes other t-shirts and hoodies, though specific prices for those items were not disclosed.

A notable addition is the Raptor Bell, priced at $125, which the company describes as a way for customers to "ring in the future." Additionally, the store offers an "I heart SPCX" tote bag for $45 and an SPCX hat for $40, directly celebrating the company's stock ticker.

Connection to Tesla Strategy

The quick release of merchandise follows a pattern established by Tesla, another company led by Elon Musk. Tesla has a history of launching viral merchandise, including items like "short shorts" that mocked short sellers. The electric vehicle maker has also released products celebrating its Texas roots, specific vehicle models, and the Optimus humanoid robot.

The shared leadership between SpaceX and Tesla likely influenced the rapid rollout of celebratory items following the IPO. The merchandise is available through the official SpaceX online store.