Billionaire investor Ron Baron predicts his firm's $25 billion stake in SpaceX will generate "hundreds of billions of dollars" in returns, driven by Starlink's growth and future space-based data centers. In a CNBC interview, the Baron Capital founder and CEO outlined a scenario where SpaceX's market capitalization could rise from roughly $2 trillion to $14 trillion within a decade.
Starlink as the Core Growth Engine
Baron detailed his projections, stating that Starlink's revenue could climb from about $13-$14 billion today to around $1 trillion in ten years. He estimated that the satellite internet business would generate $700-$800 billion in EBITDA, which would support a valuation of approximately $14 trillion. "That's just Starlink. So basically, you're going to make seven times your money just for Starlink," Baron said, noting that the business is still immature. Currently, SpaceX's total valuation stands at $2 trillion, according to Baron.
Space-Based AI Data Centers on the Horizon
Beyond Starlink, Baron highlighted plans to launch data centers into space as soon as next year to support AI computing. He argued that building data centers on Earth in the United States has become politically disruptive, making orbital facilities an attractive alternative. "If you want to have AI, you have to have data centers. Data centers, you can't build on Earth anymore," he said. This new revenue stream could further boost SpaceX's financial prospects.
Market Reaction and Current Valuation
SpaceX's private shares, trading under the ticker SPCX, were last priced at $191.82. Baron's bullish outlook comes as the company continues to dominate the space launch market and expand Starlink's subscriber base. The CEO's confidence reflects a broader belief among some investors that SpaceX's technological lead will translate into enormous long-term profits.