Venture capitalist Chamath Palihapitiya believes that SpaceX’s massive valuation will be justified in just a few years, noting that investors are buying into a company that’s at the forefront of revolutionizing the internet and AI.
In a new episode of the All-In podcast, the billionaire says SpaceX will likely generate $25 to $30 billion in revenue this year after generating $18.7 billion in revenue in 2025.
Palihapitiya predicts that the company will generate up to $45 billion in revenue in 2027 before doubling to $90 billion by 2028.
“I’m buying probably the most important internet infrastructure project that’s happened since the internet itself, that’s going to scale to hundreds of millions of users. And the reason that’s going to scale to hundreds of millions of users is it’s just very useful, and it’s just going to become cheaper and cheaper and cheaper.”
Palihapitiya highlights that in addition to Starlink, the company also has an AI business after acquiring xAI for $250 billion.
“And then I’m buying an AI business, which will be at the top level, the apps, but at the bottom layer, all the compute capability. And I think when you scale that out, like, why is Colossus so valuable to Anthropic? Maybe that’s like a good question to ask. It’s because if you look at who’s actually capable of delivering a gigawatt data center, these guys are the closest. And the reason is that this stuff is very complicated and very, very hard.”
According to Palihapitiya, SpaceX would be trading at 20x revenue by 2028, which would ultimately allow Elon Musk to acquire or invest in other companies.
“What the revenue does is it gives him the operating leverage to go and invest in all of these other businesses that ultimately consolidate his differentiation and his competitive moat, because what he creates is a capital moat, that then accelerates a technology moat that then accelerates an execution and a learning moat. And that flywheel when it starts to spin very quickly.”
What It Means for Investors
Earlier this year, Palihapitiya predicted that SpaceX would eventually merge with Tesla to create a modern Berkshire Hathaway. Palihapitiya said the merger would allow investors to buy one stock that backs all of Musk’s projects and investments.
He appears to be mirroring the same language when he said that SpaceX’s growing revenue gives Musk the operating leverage to raise more capital and invest in other businesses, ultimately becoming a technology conglomerate that echoes the strategy of Warren Buffett’s Berkshire Hathaway.
The capital moat supports technological advancements as Musk acquires or invests in more companies that speed up learning to keep pulling further ahead. The flywheel generates more revenue, allowing Musk to make more investments, improve technologies and so on.
In short, Palihapitiya says that SpaceX’s $2 trillion valuation may look mind-boggling today, but it won’t be the case in the future. In just a few years, he believes that SpaceX’s current valuation will look cheap.
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