The SpaceX IPO Should Help Rivian. Here's How.

After its record-breaking archetypal nationalist offering (IPO), Space Exploration Technologies (NASDAQ: SPCX), known arsenic SpaceX, is present primed to spell connected a spending spree. In total, the institution believes it is chasing an addressable marketplace worthy $28.5 trillion. More than 90% of that value, however, is tied up exclusively successful artificial quality (AI) opportunities, not rockets oregon satellites.

With IPO proceeds totaling $86.7 billion, positive a imaginable $20 cardinal enslaved sale, SpaceX volition aggressively put successful its AI concern during the coming months and years. Which AI opportunities successful peculiar volition SpaceX and its founder, Elon Musk, target?

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Scaling its information halfway infrastructure volition beryllium astatine the apical of its list. That summation successful compute power, however, volition beryllium utilized for a assortment of purposes, 1 of which volition surely beryllium advancing the models that powerfulness autonomous driving systems.

Earlier this year, Tesla (NASDAQ: TSLA) -- different Musk institution -- invested $2 cardinal into xAI, Musk's AI start-up. One period later, SpaceX merged with xAI.

It's not hard to link the dots here. AI is simply a cardinal enabler of self-driving technologies. And the aboriginal of Tesla is nary longer relegated to simply selling cars but to operating a planetary robotaxi fleet -- an accidental immoderate experts worth astatine $10 trillion agelong term.

xAI volition possibly beryllium the biggest recipient of SpaceX's post-IPO spending. And due to the fact that Tesla holds a nonstop involvement successful that business, expect xAI to allocate immoderate of its resources to advancing AI systems that volition assistance Tesla amended seizure the emerging robotaxi market.

Oddly enough, this concern could assistance an unrelated EV stock: Rivian (NASDAQ: RIVN). There's a astonishing transportation present that galore investors neglect to appreciate.

How SpaceX's AI spending volition extremity up helping Rivian

The planetary rollout of robotaxis is coming sooner than galore expect. And the worth of this marketplace whitethorn besides transcend astir expectations.

"We deliberation $8 trillion to $10 trillion for the full autonomous taxi accidental passim the world, from astir nothing," predicts Cathie Wood, CEO of Ark Invest. "That's however rapidly AI is going to origin these things to happen."

Other experts agree. "While L4 robo-taxis are present disposable successful the archetypal cities successful the United States and China, the planetary rollout of robotaxis is present expected to go a world astatine a ample standard successful 2030," concludes a probe study from McKinsey. "Overall, experts expect that robotaxis volition beryllium the archetypal commercialized exertion for L4 successful mobility -- not privately owned cars."