Elon Musk's SpaceX will become the most valuable company in the world — worth $20–$40 trillion — because it has unique, non-replicable compute and rocket infrastructure.
Ron Baron predicts SpaceX will be worth 20-30 times the IPO price within 10-15 years, reaching $20-40 trillion. He argues SpaceX's compute clusters are uniquely coherent and scarce, generating 3x the revenue of comparable capacity. ✦ AI generated
Ron Baron · The Compound · 2026-07-24 · original ↗
starts at this moment · 18:16
I think it's going to be we think it's going to be 20 to 30 trillion dollar value at least $40 trillion. ... we think that in SpaceX we're going to make somewhere 20 times 30 times from the IPO price. 20 to 30 times next 10 to 15 years. ... we're getting almost 25 30 billion a month for something a year rather for something that cost us 25 or 30 billion to build. To show you how scarce it is, we're getting three times what CoreWeave would get for the same amount of compute. Three times. Why is that? Because we got it. No one else has it. And also our compute is different than other people's compute because it's coherent. Because it's all together.
verbatim transcript · starts at 18:16
18:16Incredible business. You think this is going to be the biggest company in the world? >> Yes. >> By by a wide margin? >> I think it's going to be we think it's going to be 20 to 30 trillion dollar value at least $40 trillion. Uh it started off at two trillion as the IPO. Um >> Ron, when people hear that number, it sounds like you're on drugs.
18:37>> Um I don't do drugs. I don't I don't drink. Um, >> but you you understand like when people people say, "Well, we're first seeing now the first ever $5 trillion." >> The S&P market cap total is what 70 trillion, whatever it is. So >> 70. >> So people are saying that people are saying that >> I think it might be 80. >> What what your your vision is for
18:58something that's never existed before on Earth. So I'm sure you have a great answer for it. >> It's you're right. uh this is a unique business and one of the things we look for all the so so we have so so we have our firm is different than most money managers so we have a mission and the mission is to change lives that's our mission and so when you say have
19:20something like a mission then all of a sudden you get better employees than you do because they're working for something not just for themselves and then we have principles that we follow and the principles are how do we do it you know we question everything we do. You talked about gambling before, about betting, we question everything. And I tell the people with whom we work that what I
19:43want them to do when they're making our analysts, when they make recommendations to us, I want them to think about if their family, you know, fortune, if their family good well-being depended upon them being right, what would they have to know in order to make that investment? What would they have to know? And I said, 'When when when an when companies come to visit us, which they do every single day, they come to
20:08visit us to court us to invest in their businesses. I said, I don't want to see them not typing. I don't want to see them stop asking questions. You ask and there are no dumb questions. You keep asking questions and you ask questions as though your life depends on you don't have to write all the time. I don't expect that. But I do expect you to find
- ·Predicted valuation of $20–$40 trillion
- ·Unique non-replicable compute + rocket infrastructure
- ·Compute clusters are coherent and extremely scarce
- ·Baron expects 20–30x the IPO price
- ·Already generating ~$25–30B annual revenue
- ·Build cost recovered on a single year's revenue
- ·Coherent, unified cluster can't be replicated
- ·Customers pay premium for exclusive access
- ·Scarcity drives pricing power vs CoreWeave