Bloomberg Technology Special Live From Rocket Lab (Correct)

Commercial Space Industry Boom in Southern California

• Bloomberg Technology is live from Rocket Lab in Long Beach, featuring conversations with the biggest names in the space and defense industries (34s).
• The commercial space industry started with a single name but has boomed into thousands of startups, many in Southern California (53s).
• SpaceX has become synonymous with commercial space, with 380 launches of the Falcon 9 family of reusable rockets to date, but competition is catching up abroad and at home (1m10s).
• Many companies have been trained at SpaceX and are building new startups, deciding to build where there is a concentration of talent, which is Southern California (1m23s).
• Rocket Lab is a competitor, with 11 launch missions this year, and is developing a new rocket called Neutron to address the larger medium class market (1m54s).
• The Pentagon has bought several launches from ULA, but delays have put pressure on the company, and it has launched two rockets so far, neither of which has cracked reusability (2m8s).
• Europe has faced delays and malfunctions, leaving the continent unable to get to orbit with its own rockets for quite some time, but the consortium launched the final mission of its Vega rocket on September 4 (2m29s).
• SpaceX is still the most reliable way to hitch a ride to Earth orbit (2m46s).
• A California state commission voted against a request by the U.S. military to approve more SpaceX launches, expressing concern about why they were not applying for a permit themselves (2m59s).
• There have been concerns over working conditions at SpaceX and Elon Musk's increasing role in U.S. politics (3m13s).
• Rocket Lab is an end-to-end space provider, making rocket components and avionics, and has expanded its footprint to the U.S., Denver, Albuquerque, Mississippi, Silver Springs, and a launch site in Virginia and a facility in Toronto (3m56s).
• Rocket Lab has two launch systems: Electron, the second-most frequently launched vehicle in the U.S., which has launched 53 times, and Neutron, which is still in development (4m45s).
• Space engineering is difficult, and Rocket Lab's Neutron rocket has been in development for three years, with the company announcing it in August 2021 (5m13s).
• Developing a rocket is an arduous task that requires dedication and creates a defensible position in the industry (5m47s).

Rocket Lab: A Key Competitor

• Rocket Lab is a competitor, with 11 launch missions this year, and is developing a new rocket called Neutron to address the larger medium class market (1m54s).
• The Pentagon has bought several launches from ULA, but delays have put pressure on the company, and it has launched two rockets so far, neither of which has cracked reusability (2m8s).
• Europe has faced delays and malfunctions, leaving the continent unable to get to orbit with its own rockets for quite some time, but the consortium launched the final mission of its Vega rocket on September 4 (2m29s).
• SpaceX is still the most reliable way to hitch a ride to Earth orbit (2m46s).
• A California state commission voted against a request by the U.S. military to approve more SpaceX launches, expressing concern about why they were not applying for a permit themselves (2m59s).
• There have been concerns over working conditions at SpaceX and Elon Musk's increasing role in U.S. politics (3m13s).
• Rocket Lab is an end-to-end space provider, making rocket components and avionics, and has expanded its footprint to the U.S., Denver, Albuquerque, Mississippi, Silver Springs, and a launch site in Virginia and a facility in Toronto (3m56s).
• Rocket Lab has two launch systems: Electron, the second-most frequently launched vehicle in the U.S., which has launched 53 times, and Neutron, which is still in development (4m45s).
• Space engineering is difficult, and Rocket Lab's Neutron rocket has been in development for three years, with the company announcing it in August 2021 (5m13s).
• Developing a rocket is an arduous task that requires dedication and creates a defensible position in the industry (5m47s).
• Rocket Lab's revenue has crossed $100 million in Q2, with launch representing 30% of revenues and space systems representing 70% (6m47s).
• The company sells solutions, subsystems, and full spacecraft solutions, including solar solutions, radios, batteries, and composites, to the merchant market (7m6s).
• Rocket Lab has built spacecraft for NASA and is working on a couple that will be orbiting Mars, which is a significant development for the company (7m25s).
• The company was not originally included in the NASA program but was added later, and they are now making full satellites for the DOD and the Space Development Agency (7m42s).
• Rocket Lab has already completed 53 launches and is looking at 15 to 18 launches this year, with a big Q4 coming up and growth expected next year (8m14s).
• The company uses 3D printing to build rockets and can produce as many as the market demands, but the market is still nascent (8m31s).
• The business of sending payloads to orbit tops out at $3 million for SpaceX, which has a big lead in the industry, but Rocket Lab is focused on designing, building, and operating spacecraft and orbits (9m8s).
• The company is oriented around applications and ongoing revenue streams, rather than just launching payloads, and is positioned as an end-to-end player in the space industry (9m32s).

Tesla's Cyber Cab and Investor Reactions

• Tesla has revealed its robotaxi, called the Cyber Cab, which is expected to be in production by 2026, with a price tag of less than $30,000 and a cost of $0.20 per mile, although this could increase to $0.40 with regulation (12m12s).
• The company's shares have fallen due to skepticism and a lack of detail about the project, with some investors expressing disappointment at the lack of information about the business model and the ridesharing app (12m45s).
• The Cyber Cab will be available to buy, adding another dimension to Tesla's master plan, although the details of the proprietary ride-hailing app are still unclear (13m49s).
• Elon Musk's comments about the future of transportation, including the idea that Uber drivers will be the "shepherds of the flock," have been met with skepticism, with some investors questioning what this means for the future of parking lots and transportation (14m14s).
• The unveiling of the Cyber Cab has had a positive impact on the shares of Uber and Lyft, with some investors seeing it as proof that Tesla will not replace them in the near term (14m37s).
• Nancy, an investor, has expressed disappointment at the lack of detail about the Model II, which was expected to be revealed, and has stated that she will continue to hold Tesla stock despite the current decline (16m50s).
• The event at which the Cyber Cab was unveiled was described as feeling like a party, with a "mock pit of groupies" and a sense of optimism among investors, although institutional investors were disappointed by the lack of detail (15m29s).
• Elon Musk's ability to keep investors looking to the horizon has been noted, although some investors are now looking for more concrete information about the company's plans (16m19s).
• The unveiling of the Cyber Cab has also raised questions about the potential for Tesla to sell the vehicle as a normal car, with a steering wheel and pedals, rather than as a robotaxi (16m1s).

AI Accelerator Market and SpaceX's Vision

• Over the last 12 months, the AI accelerator market has seen significant demand, with over $4.5 billion in demand, as mentioned in the most recent earnings report (17m46s).
• Jared Isaacman, Mission Commander of Polaris Dawn, discussed working with SpaceX, stating that SpaceX is an extraordinary organization with a clear vision that its 14,000 employees believe in, which is to make life multi-planetary (19m38s).
• Isaacman emphasized that SpaceX is not solving all the world's problems but is a great beacon that inspires many others to do the same, and it will take many companies like SpaceX to make the world a better place (20m56s).
• A new VC firm started by former SpaceX leaders has raised $550 million for its first venture fund, targeting 32 companies and providing real capital needed for these startups (21m26s).
• The El Segundo Mayor is working on incentives to keep SpaceX and other companies in the area, as SpaceX has mixed feelings about this part of the world and might be moving (22m11s).
• The $550 million VC fund is expected to keep talent wanting to come to this part of the world, contributing to the growth of the booming space business (22m31s).

Anduril and the Changing Landscape of Defense

• Anduril, a prominent defense company, has managed to win contracts with the U.S. government, demonstrating how startups can move faster and work with the government, unlike in the past (23m26s).
• The government has woken up to the need of working with startups, and programs like Replicator, which focuses on working with startups, are being implemented (24m17s).
• The Department of Defense (DOD) has become a core initiative under the current administration, focusing on startups and production, with a shift from the previous Defense Innovation Unit that built ties to Silicon Valley (24m29s).
• The DOD has become an eager buyer, supporting working with startups and understanding the need to be more thoughtful about procurement, making it possible for earlier-stage companies to sell into the Department of Defense (24m59s).
• Large legacy primes have had to work with startups, integrating the technology they build to remain the chosen supplier to the DOD (25m19s).
• Anduril's work is not just on Earth, but also in space, with a focus on space domain awareness and ensuring the US can defend and protect its assets as space becomes more congested and contested (25m50s).
• The US government views space as a critical domain, with GPS positioning, communications, and other essential functions relying on it, making it crucial to protect the space domain (26m35s).
• Anduril has partnered with Impulse, a company that brings innovations in propulsion technology, allowing for access to higher orbits and the ability to move small satellites at different orbits for longer durations (27m3s).
• The partnership with Impulse enables Anduril to put assets in higher orbits, which are expensive to reach, to conduct missions and provide end-to-end systems that answer DOD mission requirements (27m42s).
• The threat to US assets in space is real, with other countries and companies developing capabilities to target US assets, and the US government has acknowledged that space is becoming a war-fighting domain (28m20s).
• Over the next 10 years, adversaries are expected to launch more systems into space than in the last 70 years combined, making it essential for the US to have eyes and ears on everything in space to ensure the ability to conduct operations remains undeterred (28m45s).
• Anduril has responded to the growing threat by investing in talent, software, and autonomy, inverting the traditional high-cost, low-volume approach to systems development (29m7s).
• The company's focus on software and autonomy enables it to develop high-volume systems, which is essential for addressing the growing threat in space and other domains (29m38s).
• The space industry is moving towards more autonomous systems and volume systems that can handle missions, similar to the shift from one operator commanding one system to one operator controlling many systems, with the need to manufacture at scale also being a key factor (29m46s).

Northwood: Revolutionizing Satellite Ground Stations

• Northwood is a space startup that wants to build ground stations that can talk to satellites, with the goal of scaling and building them in a couple of days (32m47s).
• The current infrastructure for space companies is reliant on cumbersome solutions for outages, with Northwood aiming to change the expectations for space companies by providing dynamic satellite connectivity (33m23s).
• Northwood's contribution is through shared distribution through phased antennas, which offer 10x availability, with the goal of making satellite connectivity more like the power grid or cell phones (34m4s).
• The company's antenna arrays are designed to be scalable, deployable swiftly, responsive to changing needs, and able to be placed in more dynamic locations, such as rooftops or parking lots (34m50s).
• A demo was successfully deployed in six hours, and efforts are being made to bring the timeframe down further, with the first system built in four months (35m13s).
• The company prioritizes bringing on the right people, parts, and processes, focusing on building a team of exceptionally experienced individuals and sourcing parts from different corners of industries (35m50s).
• The company uses a design for manufacture methodology to build swiftly and consolidate things into modular units, with a four-month timeframe from the beginnings of the design phase to deploying the first iteration (36m29s).
• The company has already achieved a 10x improvement in assembly times based on the first iteration and has a fully U.S. supply chain that is flexible (37m6s).
• The company's customers will be across the space industry, including launch operators and satellite operators, as every satellite mission requires ground connectivity (37m32s).
• The company's ground segment is like the S&P of the space industry, with a growing market, and the company is excited about dynamic space missions and comms use cases (37m59s).

Varda Space: Orbital Pharmaceuticals and Reentry

• Varda builds little spacecraft that process pharmaceuticals in orbit and bring them back to Earth, but needs rockets to get them there and back (39m17s).
• Varda's manufacturing systems make new drug formulations possible in microgravity that would not be possible with Earth gravity, and the company uses gravity for the manufacturing process (39m57s).
• The company's products are stable in microgravity but not on Earth, and temperature is part of the process, with the product remaining the same when the temperature is changed (40m17s).
• Varda is working on building reentry vehicles, with the goal of bringing back items from space, and is the third company to do so, after SpaceX and Boeing, with a team of 103 people and a vehicle capable of reaching Mach 25 (40m26s).
• The company aims to reduce the dispersion area for reentry to a football field size, but currently requires a larger area, and is working on bringing those areas closer together (40m56s).
• The complexity of reentry lies in getting the vehicle into a specific area, with Varda aiming to land in an area slightly smaller than the size of Maryland (41m22s).
• Varda has developed new technology over the last few years to achieve reentry, and has successfully landed in Utah, with the next landing planned in Australia, and is also considering New Mexico (41m50s).
• The company is working on making reentry as common as launch, and is laying the infrastructure and building systems for that (42m4s).
• Varda's relationship with Rocket Lab is as a launch provider, but the majority of its revenue comes from other services, such as pharmaceutical manufacturing in orbit (42m17s).
• Varda is part of an ecosystem that is developing in space, with exponential growth, and is demanding more access to space, which is becoming cheaper and easier (42m39s).
• The company is working with SpaceX as its launch provider, Rocket Lab for comms, and Varda is the reentry vehicle with manufacturing equipment inside (43m2s).
• Regulation approval is an issue for companies like SpaceX, but Varda is pushing for regulations to be updated, and has proposed specific standards to make the FAA review process easier and safer (43m25s).