Latest / AST SpaceMobile Podcast / Kook's Weekly - December 21

Transcript

Kook's Weekly - December 21 · AST SpaceMobile Podcast

• 0:06
  This is the AST Space Mobile podcast.
• 0:11
  Just basically from the phone, be seamless, regardless of where
• 0:14
  you are. We don't want the user even to
• 0:16
  know that it's connected by satellite.
• 0:21
  Listen, the opportunity that we have is very, very, very large.
• 0:27
  OK, Good afternoon. Good evening.
• 0:30
  Good morning. Who the hell even knows at this
• 0:32
  point. I wasn't going to do a spaces,
• 0:35
  but then that guy in the comments was giving me crap.
• 0:39
  And so I'm sitting here in Australia and so I don't even
• 0:44
  really know where I am or what's going on in the world.
• 0:48
  They got off the airplane and I'm just trying to make it.
• 0:50
  But the good news is actually feel great.
• 0:53
  So I wanted to, but it is Sunday for me.
• 0:55
  So it's a a Sunday, 3:40 PM Spaces, which is a little
• 1:01
  earlier. And I was just trying to go
• 1:02
  watch sports with my son and we go to the hotel lounge and there
• 1:06
  there's the Ashes Cricket on them.
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  Like, no way I can watch this. I have no idea what's going on.
• 1:13
  So now he's sitting there watching Tasmania versus Perth
• 1:17
  play basketball. Who knew?
• 1:19
  And I thought I'd bang out of spaces to keep the streak alive
• 1:22
  and, and frankly, just to piss off the shorts because I thought
• 1:24
  they were probably thinking, ah, kook finally gave up.
• 1:27
  And no, motherfucker, never. I haven't slept well in for a
• 1:33
  long time, but I'm still going to do a spaces just to spite you
• 1:38
  and your short call. So let's kick off with what is
• 1:42
  happening. So FM 1 is set to be launched
• 1:45
  from India. So for me, I think it's actually
• 1:47
  a really easy launch to watch in terms of time zones.
• 1:49
  So that's exciting. But really this is just the tip
• 1:54
  of what is about to happen. FM 1 is really the first sausage
• 1:59
  of the sausage machine getting made, where when you think about
• 2:03
  really what happened with FM 1 and FM 2 to some degree,
• 2:08
  although who knows if FM 2 is ever going to launch, But FM 1
• 2:12
  really is not a breakthrough on Micron Assembly.
• 2:17
  It's a mechanical breakthrough in that they figured out a way
• 2:19
  to make the unfurling even more simple because there's just
• 2:22
  fewer moving pieces on the satellite.
• 2:26
  But the real big breakthrough here is the the bigger bus.
• 2:29
  And so the control set is something that was quite
• 2:32
  difficult for them to get done. But like all things, once you
• 2:36
  push the first one out, all the other ones are a lot easier.
• 2:40
  So this is really the tip, but the full shaft of the
• 2:45
  constellation production is very large and apparently has
• 2:50
  throughput of 6 per month it has been reached.
• 2:52
  And that's really where the values created is having gotten
• 2:56
  the first control set done, just because the first one is delayed
• 3:01
  has 0 indication on whether the subsequent ones are delayed.
• 3:04
  And, and I don't think they are. So now the company has
• 3:07
  officially announced they launch.
• 3:09
  It was kind of weird. ISRO announced the launch, they
• 3:12
  pulled it. So it almost seems like they
• 3:13
  were stealing Space Mobile's Thunder.
• 3:16
  And now it is East Coast time. It is December 23rd, 10:24 PM
• 3:22
  and I have no idea what time that is for me, but I believe is
• 3:26
  the 24th at around 4, but we'll figure it out.
• 3:31
  They're very exciting. This launch vehicle has a 100%
• 3:35
  hit rate and hopefully it goes well.
• 3:38
  It is an SDA satellite, so I'd imagine they measured twice
• 3:41
  before cutting once on this one. And it does start the beginning
• 3:46
  of the next generation satellite launches, which is where the
• 3:51
  value creation for this company will occur.
• 3:54
  So now we step back. It probably was one of the
• 3:56
  funniest memes ever created by AMPAM.
• 3:58
  Man out of Tim Farrar in a bear suit surrounded by a bunch of
• 4:02
  Santa Claus is about to have their way with him.
• 4:06
  And so when we think about the events that we have in front of
• 4:09
  us, so Trump basically just signed into law, the makespace
• 4:15
  stocks go up law, and it's really important.
• 4:18
  We'll get that to this in a second.
• 4:19
  But this space support superiority, executive order, I
• 4:22
  think is one of these things that people are going to look
• 4:25
  back at a year or two from now and go.
• 4:27
  It's not that hard in this world to make money if you just
• 4:33
  literally look at where the government is putting their
• 4:35
  thumb on the scale and do that thing.
• 4:37
  And so for me, it is a very powerful lesson looking back at
• 4:40
  for for me, things like when they signed in to law, Freddie
• 4:46
  and Fannie to basically subsidized housing that created
• 4:49
  kind of the epic bubble of all time.
• 4:51
  When China joined the WTO. If you had sat and thought about
• 4:54
  that, the investment implications of that were pretty
• 4:57
  clear. It's like, OK, go buy all the
• 5:01
  copper and oil you possibly can. And so there and there's many
• 5:06
  other ones. The IRA just signed a couple
• 5:08
  years ago. Go buy all the utility and
• 5:12
  utility services stocks you can possibly buy, things like that
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  until sometimes, you know, these stocks will move, you know, 510%
• 5:19
  on the day law is signed. And then everyone else is like,
• 5:24
  instead we should have that trade on.
• 5:26
  And then you look at these charts kind of over the next one
• 5:29
  to two years and they all triple and it's like, whoa, hold on.
• 5:33
  The magnitude of the move is very deceptive because so many
• 5:38
  people, especially hedge funds, you see something gap 15%.
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  Very few people can lift an offer and then you know, stocks
• 5:44
  will churn And it's the classic meme of pops.
• 5:46
  So like, I wish I owned it goes down 10%.
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  Oh, I'm glad I don't, I don't know.
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  I'm not a piece of shit. And then it subsequently double
• 5:52
  S and triples and people just kind of ignore it and pretend
• 5:55
  they had never even thought about it because it's so
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  embarrassing. I think that's what's going to
• 5:58
  happen with space. This is a big mega trend.
• 6:01
  And then we had the Golden Dome NDAA signed on the 18th, which
• 6:07
  is still a lot. I still need to study because
• 6:09
  I'm still actually quite confused how this works.
• 6:11
  There are some other people that have really helped us learn on
• 6:14
  this. Tough for you is is one that
• 6:17
  I've been retweeting his stuff and he is really educating us a
• 6:21
  lot. In terms of the difference
• 6:22
  between SDAMDA, the process of being a prime excetera.
• 6:27
  I would be lying to you if I said I could articulate all
• 6:30
  these nuances clearly and accurately.
• 6:35
  I'm still learning as well. The other event we have is
• 6:37
  obviously the ISRO launch. We're going to have the Saudi
• 6:40
  telecom prepayment hit 1231, Happy New Year.
• 6:44
  We think BB7, which is FM 2, we think is going to be a Blue
• 6:49
  Origin launch and that could be shipping out really at any time.
• 6:53
  The FCC approval for SCS coverage for ASTS could again
• 6:58
  happen at any time and then we're going to have the first
• 7:01
  batch shipments. So we think that they're going
• 7:03
  to have 2-3 satellite launches each on SpaceX launches is our
• 7:10
  best guess and those could be shipping really at any point.
• 7:14
  And so this is really the near term path to show execution for
• 7:18
  the stock. And obviously, there, maybe it's
• 7:21
  not obvious to the market, but there's a lot of upside tail
• 7:24
  risk as we get into this high acuity period.
• 7:28
  And so Golden Dome developments, for example, other DAS getting
• 7:32
  signed, for example, proof that they're actually producing 6
• 7:36
  satellites per month, which again, we'll get to the primary
• 7:41
  evidence on why we think that's happened.
• 7:43
  But that implies that then there's a lot of satellites
• 7:46
  piling up, which means that we're really at the X LAX phase
• 7:49
  of constellation Constipation relief, which I think will
• 7:53
  happen eventually and it could happen very soon.
• 7:56
  So one thing that came out is this interesting interview by
• 8:01
  Doctor Gurpartap of USSDA. And he was explaining the Halo
• 8:09
  program and more specifically talked about how 2 SDA
• 8:13
  satellites that have been delayed are about to go up and
• 8:15
  just reaffirms that ASTS is, is working very closely with the
• 8:19
  SDA. But what he reveals in these two
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  new satellites, which were quote, delayed a little bit, are
• 8:26
  testing new waveforms. And so then people were going,
• 8:29
  what's a winning waveform? Well, a new waveform, for
• 8:31
  example, could be 6G. It could be some of the crazy
• 8:34
  stuff that Cohere is doing, which then dramatically
• 8:37
  increases the efficiency of spectrum.
• 8:39
  It could be military waveforms which are highly encrypted,
• 8:41
  which is more likely what they're trying to do.
• 8:44
  It could be all sorts of non communication use cases of
• 8:48
  waveforms that do other things. So just kind of proof that ASTS
• 8:53
  is at the bleeding edge of 5G technology and the government is
• 9:00
  eagerly awaiting their results. So now here is the tweet really
• 9:04
  just about investing behind the trend.
• 9:06
  And so to me, again, this is a big learning of my career.
• 9:09
  I've been actually working with another Space Mob member on
• 9:13
  figuring out ways to sort of increase the signal to noise
• 9:16
  ratio in the world of really understanding where these trends
• 9:19
  are, because I do think you could miss a lot of them.
• 9:21
  Fine, but all, all you have to do is find one or a couple and
• 9:27
  these megatrends, you know, to me it's, it's really the
• 9:29
  embodiment of the phrase would behind the arrow.
• 9:34
  And so we, we think about that a lot at my firm of really trying
• 9:39
  to invest so that there's a ton of wood behind an arrow, which
• 9:42
  is to say we'll make an investment and then really be
• 9:44
  able to go the distance and know what we own and make sure we
• 9:48
  push through cycles, other challenges to kind of prosecute
• 9:52
  an investment. But as it relates to thematic
• 9:55
  investing, you'll find a company you really believe in.
• 9:58
  Don't just be a thematic investor, but once you find a
• 10:01
  really interesting value creating company with a unique
• 10:03
  business model, it also separately has a big mega trend
• 10:06
  behind it. Understanding that and being
• 10:08
  patient enough is where I think you'd get the kind of abnormal
• 10:12
  return streams. And I'm, I'm very conscientious
• 10:16
  of this and to to show how long this stuff takes.
• 10:18
  If you rewind back to 2021, I thought space was going to be a
• 10:22
  big emerging theme. Turns out it was.
• 10:25
  But the path between 20/21 and today was blood and guts.
• 10:28
  And I remember when it must have been February 2021.
• 10:32
  Kathy Woods, Ark, even set up a ETF for the space economy.
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  And I thought, Oh my God, I'm so smart.
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  Famous last words. Oh, wow, I did something that
• 10:45
  Kathy Woods did. I'm so smart.
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  It's like literally the definition of being an idiot.
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  But, you know, here I am. But I thought, look, other
• 10:52
  people see this. This is going to be this big
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  megatrend the the space of the past, you know, 50 years, which
• 10:57
  was really sort of government initiatives paving the way.
• 11:00
  It's finally time for the privatization of space.
• 11:03
  The big trends around low Earth orbit, decreasing launch costs.
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  Look at this. I'm so smart and it's easy and
• 11:11
  that was right. But the path between point A and
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  point B has all sorts of a prime a sub score thing along the way.
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  And it takes a while to sometimes be, you know, revealed
• 11:24
  that you're right. But just look at where we are
• 11:27
  today. Look at the value creation among
• 11:28
  some of these stocks, Asts for one, Rocket Lab for another.
• 11:32
  This is the beginning of a big trend.
• 11:34
  Another thing when you compare this trend to other sort of
• 11:38
  realities is the next tweet about Chinese Kung Fan Leo
• 11:43
  satellite constellation. I'm sure some people are going
• 11:45
  to be very impressed or appalled at my attempt to properly speak
• 11:50
  Chinese with Kung Fan. But it is 1000 sails Elio.
• 11:55
  So China always has very dramatic, you know, satellites
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  of great harmony for destruction of terrible adversaries who are
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  unharmonious. You know, would be another
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  alternative name for their constellation when translated
• 12:08
  back into English. But rest assured, when China
• 12:12
  launches Kung Fong, the Pentagon is going holy shit, because they
• 12:19
  don't want to get caught behind in the arms race, which includes
• 12:22
  everything. Now, whatever China does, it's
• 12:24
  an arms race. So we have to do it too.
• 12:26
  And so nothing is going to focus the resolve of the Pentagon like
• 12:31
  China doing these things. So that's also good.
• 12:33
  It's bad and that China's doing things, but it is good for us in
• 12:36
  that China doing things trades urgency for the US to do things
• 12:40
  and do them fast. And that's why Trump signed the
• 12:42
  executive order. So zooming out, our amigo
• 12:46
  Antonio Galaras is back helping us understand the size of the
• 12:53
  market. So he gave podcast kind of came
• 12:56
  out of nowhere. I thought he gave up just to
• 12:57
  kind of lick his wounds on hymns and Duolingo.
• 13:00
  And you know, there is a guy who I think also thinks very
• 13:04
  thematically understands business models and the problem
• 13:06
  with high multiple growth stocks is they can go down 60% early on
• 13:11
  minor business changes or perceived secular challenges and
• 13:17
  and be brutal, but doesn't doesn't mean you're wrong
• 13:19
  doesn't mean he's wrong. I don't really have a strong
• 13:21
  view on either of those two things.
• 13:22
  But ASTS as as a proxy for a sort of the Ontario Leonardos
• 13:28
  investment ecosystem is proven time and time again.
• 13:30
  We can have 50 plus percent drawdowns on our path to
• 13:34
  greatness. So you listen to him.
• 13:36
  He's making the point that this is really a dominant player in
• 13:41
  the physical AI market, which I also agree with, except when
• 13:44
  Oracle as its data set are problems in then I would like to
• 13:49
  not have ASTS become an AI stock.
• 13:51
  But you know, under the pressure of a polygraph test.
• 13:55
  I would say that yes, ASTS is in fact a leverage AI play because
• 13:59
  I do think that edge AI is going to be incredibly important and
• 14:03
  connectivity is directly ASTS strong suit.
• 14:07
  And then to the extent you have AI data centers in space, that
• 14:11
  too will become an important Nexus for AST space, mobile in
• 14:16
  particular as it relates to Department of War use cases.
• 14:22
  So Jennifer Manor, our Senior Vice President of Regulatory
• 14:26
  Affairs was testifying and said that we are in fact already
• 14:30
  manufacturing 6 satellites, she said per day, but it's obviously
• 14:35
  not per day, six satellites per month.
• 14:37
  That's exciting. And so she said that she didn't
• 14:39
  have to say that we, you know, she didn't have to speak in the
• 14:42
  contemporary. And I so I do think that this is
• 14:45
  a press release that Scott's holding back on because if I
• 14:47
  were Scott, and thank God I'm not because of quality of life
• 14:50
  issues, that guy seems like he doesn't have time to do a lot of
• 14:55
  longevity healthcare protocols. But if I were he, I would want
• 15:01
  to have a Big Bang. I'd want to have FM one out the
• 15:04
  door. It is.
• 15:06
  I'd want to be able to ship FM 2 and finally rid myself of this
• 15:09
  albatross of delays and then I'd want to show people my 2 Wayne,
• 15:17
  sorry, my wife just tried to call through.
• 15:19
  How dare she interrupt my spaces at the same time, still my
• 15:24
  production rate because then you know, obviously it's like, oh,
• 15:26
  we, we just shipped 2 batches of satellites People like yay.
• 15:29
  And then they assume that the next batch of satellites is in
• 15:32
  the year 2032. And So what we want to have is
• 15:35
  them show that they're doing 6 satellites per month to get out
• 15:39
  the gate. So that is what I would do.
• 15:42
  It would be a dramatic press release.
• 15:43
  I think that's the type of thing that we're back kind of in a
• 15:47
  good stock market. That's the type of press
• 15:49
  release. I think they could shoot us well
• 15:50
  above $100 because people will will understand how to flow
• 15:55
  through what the earnings leverage of this company is as
• 15:57
  they execute. And some of these new numbers I
• 16:00
  have in my new DD dock that really just shows some estimates
• 16:04
  of what exit rate EBITDA could be for 2026 and 2027, putting a
• 16:07
  multiple on that and just showing you this isn't rocket
• 16:10
  science, but what the share price would be.
• 16:12
  And they're big numbers. And I think I'm being
• 16:14
  conservative on my my revenue estimates, but they were just
• 16:20
  provides a really simple way for people to understand sort of
• 16:24
  what is what is likely kind of discounted now, where could it
• 16:27
  go in the next one to two years? And you know, what are the, the
• 16:31
  areas where this could deviate to the upside or downside.
• 16:34
  So that stuff, they'll be in the new DD dock, which is done, but
• 16:37
  I thought I would instead just release a cartoon summary of it
• 16:41
  in the form of Calvin and Hobbes, which is sort of the
• 16:45
  preview and the mockery to the shorts as they can wonder what
• 16:48
  else is behind that cartoon. So Golden Dome perplexing is a
• 16:55
  great way to describe Golden Dome.
• 16:57
  Until I looked at Quilty as my first sort of arbiter of truth
• 17:04
  here and they said, you know, Quilty is a very respected
• 17:08
  investment firm consultancy, not like a Tim Ferrar.
• 17:12
  This guy is one of the original Space Research analyst, I think
• 17:16
  it was from Raymond James, very well known investment banker,
• 17:20
  works with all the companies in a in a respectable fashion.
• 17:23
  And so they said if you were surprised by who didn't show up
• 17:26
  in the missile defense Shields, you're not alone.
• 17:28
  This isn't a list of companies building Golden Golden Dome as a
• 17:31
  list of companies helping the government figure out how Golden
• 17:34
  Dome should work in the first place.
• 17:35
  Simulations, early sensors, software and testing not
• 17:38
  finished systems. The big the big names will show
• 17:41
  up later. This is the groundwork.
• 17:43
  OK, that's a really interesting set of observations that is
• 17:46
  identical what military people like tough for you are saying.
• 17:51
  I have some other sources that are interesting enough for me to
• 17:56
  mention here that have been telling me some very bullish
• 18:01
  things about ASTS is involvement in Golden Dome.
• 18:04
  And I don't know if they're right, but based on the track
• 18:06
  record of me kind of observing them over the past four years, I
• 18:08
  would say they seem to know what they're doing.
• 18:10
  And so we think that there is more to come on Golden Dome and
• 18:16
  it's unclear if ASTS actually already got some initial stuff
• 18:19
  as a subcontractor to the initial primes in particular AT
• 18:24
  and TL3 and or Lockheed. I just don't know but it, but
• 18:29
  it's, it's heating up and there's a lot of reasons to
• 18:32
  believe that ASTS is going to have a very big role in all of
• 18:35
  this. And it is a labyrinth for sure.
• 18:39
  And so I gave a couple of tweets just so people can also educate
• 18:43
  themselves. And you know, one that's I would
• 18:47
  say certainly written with an expert audience in mind is the
• 18:50
  one from Tough for You, which has all sorts of new acronyms
• 18:53
  I've never been exposed to. I recommend reading those
• 18:56
  yourself. And then we have a really nice
• 18:58
  recap from Reg Room, also known as murder.
• 19:03
  You went and kind of did a forensic analysis of the history
• 19:07
  of everything ASTS has talked about with respect to Golden
• 19:10
  Dome. And I would just point out that
• 19:12
  this cadence of communication has started with very suggestive
• 19:16
  and glancing to recently extremely direct and specific.
• 19:21
  And you wouldn't do that randomly from the company who
• 19:24
  has the most conservative guidance policy I've ever really
• 19:27
  encountered. So something, something is
• 19:31
  happening. I'll put it this way.
• 19:33
  Here's my ridiculous challenge to live up to my moniker of
• 19:36
  being a kook. If ASTS does not get Golden
• 19:40
  Dome, I will delete my account. There you have it.
• 19:43
  And then I will start a new account called something very
• 19:47
  similar, but I will delete the kook report and it will die.
• 19:50
  That's how confident I am that we got a Golden Dome contract.
• 19:53
  So I literally have the gun to my head and that is my
• 19:56
  ultimatum. So let's see what happens next.
• 20:01
  We have Firstnet and so just more talking about it.
• 20:04
  So we're definitely get Firstnet.
• 20:06
  So that's one where, you know, the gun is already in my mouth.
• 20:08
  Like if we don't get Firstnet, OK, no more kook in terms of my
• 20:13
  account physically, no, I will not be doing that.
• 20:15
  But my my avatar will will be sacrificed if we don't get a
• 20:19
  Firstnet contract because that I am 100% sure of because we
• 20:22
  already have the FCC testing documents and the spectrum
• 20:26
  licenses and. They're very clear that they
• 20:29
  have the dedicated band 14 spectrum connected in space.
• 20:32
  Well, that's us. So that's a done deal.
• 20:36
  The next tweet I have is really about the product road map.
• 20:41
  And so this is another thing where I've just increased my
• 20:43
  clarity and my DD dock around. Product road map is a really
• 20:47
  important thing. A lot of stock market investors
• 20:49
  really get stuck in the the immediate and the current drama
• 20:53
  without really thinking about product road map.
• 20:55
  And So what does that mean? Think of I like to use NVIDIA as
• 20:59
  an example, because it was a great outcome and it leads me
• 21:02
  down path dependency of us also being a great outcome.
• 21:05
  So NVIDIA would have said, oh, we have these like graphic chips
• 21:08
  and then, you know, we have these other things that can do
• 21:10
  more and more. And then on our product robot
• 21:13
  for these massive matrix processing things that can do AI
• 21:19
  that shows you where you are, where you're going to go.
• 21:21
  And ASTS, they haven't really given us a product road map
• 21:28
  that's more than clear beyond the ASIC Bluebirds.
• 21:34
  And it's interesting is, is that clear that the product road map
• 21:37
  actually expands at this point beyond the Bluebirds in their
• 21:42
  simple form factor. But when you start to think of
• 21:44
  the nuances, they certainly do. So they go to the ASIC
• 21:47
  Bluebirds, then they have the low, low band, which is the
• 21:50
  current constellation. And then the next thing on the
• 21:53
  road map are the mid band Bluebirds.
• 21:55
  These things work all together. This is a a very great
• 21:59
  development for us as investors because of the capabilities it
• 22:03
  builds. But then we're starting to
• 22:05
  realize that all this capacity they're building rapidly
• 22:07
  expanding is for yet other products.
• 22:11
  And those seem to be for Golden Dome, for example.
• 22:14
  And we don't know if those are power birds, we don't know if
• 22:16
  those are radar birds, we don't know those are just repurpose 5G
• 22:20
  birds. But there's, there's other stuff
• 22:22
  going on here, which is going to mean that we're pumping out
• 22:26
  satellites at a cadence of at least 72 satellites a year, even
• 22:29
  when we no longer need that for communication purposes.
• 22:32
  And so then you go, how do I think about that Kook?
• 22:35
  Well, you always want to start with unit economics where the
• 22:38
  economics from a satellite and the answer is we don't know.
• 22:42
  But we can start to do some rough calculations which are in
• 22:44
  the DD doc that show you that all else equal the unit
• 22:47
  economics of an incremental satellite are super duper, which
• 22:51
  means that reinvesting capital is super duper, which is layman
• 22:56
  terms for positive net present value of growth.
• 23:00
  And so where you have positive net value of growth, you want to
• 23:03
  grow, grow, grow, grow, grow, reinvest, reinvest, reinvest and
• 23:06
  that grows your enterprise value into my belief we have the
• 23:09
  ability to reinvest much, much longer and much more capital
• 23:15
  than the market might presently give us credit to.
• 23:18
  People might not be looking beyond 243 satellites, which
• 23:21
  admittedly is already a lot. When you run that out, you have
• 23:24
  a share price of 56700 to $1000 plus.
• 23:27
  But things get super interesting when we start to think about the
• 23:30
  product road map. So pay attention to that.
• 23:31
  I know that's a theme I've I've emphasized for many of spaces
• 23:38
  and I'll continue to do it because I think it's very
• 23:40
  important. We can next have an article
• 23:43
  Alden Viktron Iverson got us in Fnancevism, a newspaper I
• 23:48
  actually used to read and translate because of some of my
• 23:51
  interests that I had in Norway. And so it's nice that he's
• 23:55
  spreading the word that gets more Norwegians who are crazy
• 23:59
  capitalists to look at our company.
• 24:02
  And, you know, just more people showing the space mob is good.
• 24:06
  And now we get back to AI data centers.
• 24:09
  So our dear friend Katzie, who tends to be right about
• 24:12
  everything, drops his $0.10 on the subject.
• 24:17
  And the summary really is that when you segment a market, not
• 24:21
  all clients and customers are the same.
• 24:23
  And so does it make sense for my Nana Banana Pro usage to be to
• 24:29
  be met right now by space based AI data centers?
• 24:33
  Probably not. My need state can be served in a
• 24:37
  cheaper way presently. However, other need states are
• 24:42
  not the same as my Nana Banana usage to make funny memes.
• 24:47
  So the Department of War might have many many different use
• 24:51
  cases. For example, a closed loop
• 24:54
  system between two Navy ships utilizing our system for
• 24:57
  communication, which itself is already an incredible solution
• 25:02
  to a very real war problem, to then also layer in AI compute
• 25:07
  could be a very interesting thing for the battlefield in
• 25:09
  terms of targeting and fire control and things like that.
• 25:12
  I'm just making it up on the spot, but the use cases are
• 25:15
  immediately obvious when you start to let your imagination
• 25:17
  run. And where are they going to pay?
• 25:18
  They're willing to pay a much different rate than my usage of
• 25:23
  Nano Banana Pro at a retail level.
• 25:26
  So don't get lost in the AI data space Space Center.
• 25:32
  Let me restart. Don't get lost in the AI space
• 25:37
  based data center debate without understanding that the customer
• 25:42
  segmentation matters to a very niche small use case for this
• 25:47
  right now should still have economic justification in spades
• 25:53
  because the value at use to that segmented customer is extreme.
• 25:58
  And that's how I think this will play out.
• 26:00
  And then like all things, those use cases then help drive down
• 26:05
  the cost curve over time so that the use cases expand rapidly to
• 26:08
  some terminal state, which maybe it's ubiquitous AI compute in
• 26:14
  space is the end state. Maybe it's not.
• 26:16
  We don't really have to worry about that right now.
• 26:18
  You just have to worry about is there an initially sufficient
• 26:22
  Tam to make it happen so that this is a positive MPMPV growth
• 26:26
  project for us and I think it I think it end up will be the case
• 26:31
  the next I just have the stats for the ISRO launches pretty
• 26:34
  exciting and then no spaces would be compute complete
• 26:38
  without highlighting some Starling vaporware.
• 26:41
  And so we have that thanks to Ivan showed that the guy seemed
• 26:47
  to be fudging some demos with his SpaceX demonstration.
• 26:52
  What's new SpaceX origin the results where all AST space
• 26:56
  mobile always has all of its testing and results verified and
• 27:00
  validated by its third party partners big difference and
• 27:05
  that's it so quick hit spaces keep the trend alive.
• 27:10
  I know it's late and early at the same time.
• 27:14
  It's like Eisen Heisenberg uncertainty principle for
• 27:16
  spaces. For some people this is both
• 27:17
  convenient and others it is inconvenient.
• 27:19
  But I see that quite a lot of people join.
• 27:21
  So thank you very much, and hopefully we'll have an exciting
• 27:25
  and successful launch next week. And who knows, maybe Scott will
• 27:29
  try to beat the buzzer and put out some big press releases
• 27:33
  before the end of the year, even when people are on vacation,
• 27:35
  which would be even funnier for the shorts to literally have no
• 27:38
  chance to relax and to haunt them and all of their dreams all
• 27:41
  over the world at all times. That is my hope.
• 27:45
  Have a great evening and I will try to do another spaces next
• 27:50
  week, but I don't even know where I'll be and so it will be
• 27:53
  ad hoc again before resuming our normal schedule back when I am
• 27:58
  at home. Thank you everyone.
• 27:59
  Bye. Thanks for listening to the AST
• 28:03
  Space Mobile Podcast. If you enjoyed this episode and
• 28:06
  you'd like to help support the podcast, please share it with
• 28:09
  others, post about it on social media, or leave a rating and
• 28:12
  review. To catch all the.
• 28:14
  Latest news about AST Space Mobile, make sure to subscribe.
• 28:18
  Thanks again and I'll see you next time.
• 28:24
  We're doing something very, very big, and I think with this
• 28:26
  technology we can really affect billion lives.
• 28:29
  AST Space globally is the only company that has full technology
• 28:34
  to deliver cellular broadband connectivity directly from space
• 28:38
  to the everyday smartphone. People will just basically turn
• 28:41
  their phone and be seamless, regardless of where you are.
• 28:45
  We don't want the user even to know that it's connected by
• 28:47
  satellite. Our role is to bring this into
• 28:51
  reality, always in partnership with the MMO.
• 29:00
  Listen, Waffles.