Longtime tech investor and entrepreneur James Altucher is giving a free masterclass on what he believes will be the largest wealth creation event in history.
It has to do with Elon Musk, a hushed Federal Communications Commission (FCC) filing, and an “AI MasterKey” that will create as many as 1.8 million new millionaires.
The Teaser
This isn’t about a new patent, partnership, or IPO, but rather about Elon’s biggest moneymaking idea yet.
James Altucher is a well-known name in tech and financial circles, having been around since the late 90s dot-com boom. We have reviewed some of his previous picks here, including a Starlink IPO Stock and his Microcap Superstocks.
This one is all about the internet of our time, artificial intelligence (AI), and who ultimately ends up controlling it.
Altucher believes that when the smoke from a SpaceX reusable rocket settles this will be Elon Musk, who we’re told has a plan to make it happen.
The smoking gun proof is a signed and dated document that has been filed with the U.S. Federal government.
It’s contents lay out Musk’s “AI MasterKey.”
Artifical Intelligence in the Sky
Prior to SpaceX’s mega IPO, which ended up being the largest in history. It showed its hand.
At the end of January the company filed an application with the FCC for what it calls an “Orbital Data Center System.”
Specifically, it is seeking approval to send one million satellites into space which will operate as orbital data centers powered by an unlimited energy source…the sun.
Audacious and bold? That’s a given. Genius? Time will tell.
Elon already has the rockets, launch sites, satellites, and the AI. Now, he’s going after the data centers and James says there’s a backdoor way to play Elon’s outsized ambitions for supersized gains.
The Pitch
All the details are inside a report called “Elon’s Next Millionaire Maker – The AI MasterKey.”
Nothing is free though and we will need a subscription to Altucher’s Investment Network, which costs $49 for the first six months (normally $299).
AI’s Biggest Bottleneck, Solved?
The next decade demands more electricity than any ten-year period in history.
Just a single data center like Stargate is projected to use more power than a major metropolitan city like New York.
In order to unlock AI’s full potential, thousands more of this size and scope are needed.
This is about as sustainable as the guy in the Super Size Me documentary that ate McDonald’s everyday for an entire month.
It’s just not feasible with our current power infrastructure.
However, space seems to be a perfect place for compute. There’s no weather changes to deal with, just uninterrupted sunlight more than 99% of the time.
Space also sits at 250 degrees below zero, so cooling isn’t an issue either.
Ditto as far as no resource procurement, permitting problems, complaints from locals, or increases in electricity prices.
All the hyperscalers (Amazon, Google, Meta, Microsoft) are slowly coming to this same realization.
Google announced ‘Project Suncatcher’ last year. A name given to two test satellites that aren’t expected to launch until 2027. Jeff Bezos’ Blue Origin filed for its own version, Project Sunrise, which aims to deploy a constellation of 51,600 satellites for orbital data centers.
Even OpenAI’s Sam Altman looked into buying a rocket company to compete.
However, as of today, Elon Musk and SpaceX already have the most satellites in space, and it’s not even close, with more than 10,000 in low orbit. Roughly 9,600 more than the next closest competitor.
Although SpaceX’s FCC application to launch one million more satellites is currently pending, with an open-ended timeline, the huge head start it enjoys could turn out to be a source of durable competitive advantage if Elon is proven right that:
Within a few years the lowest cost way to generate AI (power) will be in space.
James Altucher is banking on it and so is his “AI Masterkey” company, which has built a highly specialized nervous system to transmit the data that satellites need to process.
Revealing James Altucher’s AI MasterKey Company
A public company at the center of Elon’s AI masterplan.
It’s the only one who James says can provide the speed, scale and trust Elon needs, and this what we know about it:
- This company has already been Elon’s most trusted supplier for over a decade.
- They have a jointly created (with SpaceX), patent protected system that is being used in every satellite that SpaceX has launched so far.
- It’s trading for less than $100 per share.
This sounds like STMicroelectronics N.V. (NYSE: STM) to me. Here is why:
- STMicro is known to have a decade-long relationship with SpaceX.
- The company has shipped 5 billion chips to Starlink that are used in both satellites and user terminals that enable broadband connectivity.
- After running up past $80 earlier this year, STM stock is now selling for slightly above $50 a pop.
The Next Millionaire-Maker Stock?
SpaceX’s IPO has already turned some 4,400 insiders into millionaires.
Now, the space technology company’s growth and that of it’s preferred suppliers could make millionaires out of individual investors like you and me.
We recently reviewed another teaser that touched on the possibility of SpaceX emerging as the ultimate AI winner.
It’s a big, forward-looking question to consider and one that is inherently unknowable at this stage.
However, based on the near complete vertical integration across the entire AI ecosystem of Musk’s operating businesses:
- Data (xAI and X)
- Chips (Terafab)
- Low-cost space data centers and infrastructure (upcoming)
- Efficient reusable rockets to service said data centers (SpaceX)
- Self-driving cars and autonomous robots that use the AI (Tesla)
They are the frontrunners to dominate AI, as every other company has only one or two components of the aforementioned stack.
Having said that, is Altucher’s pick, STMicro, a good play to go along for the ride?
As a semiconductor and communications equipment maker, STMicro is a specialized commodity producer. It’s net profit margin of 1-3% speaks to this.
STMicro also has high customer concentration, with its top customer, Apple, accounting for 18% of it’s total revenue and it’s top ten customers, including Tesla and SpaceX, making up nearly 50% of revenue.
For this, we are being asked to pay 4x sales and 100x current earnings. Not for me at this stage.
As for the September 25th date, which is when the first phase of SpaceX’s post-IPO common stock lockup period ends, I don’t think insiders will be selling and rotating their money into STM stock, as James asserts. So it’s a non-catalyst.
I can see STMicro’s value roughly doubling over the long-term on the back of the continued success of large customers such as Apple and SpaceX, but it’s not making any of us millionaires from a tiny initial stake.
Quick Recap & Conclusion
- Tech investor and entrepreneur James Altucher is teasing an “AI MasterKey” that will create 1.8 million new millionaires.
- The so-called “AI Masterkey” is a SpaceX supplier company that will help it dominate AI end-to-end.
- It’s name and ticker symbol are only revealed inside a report called “Elon’s Next Millionaire Maker – The AI MasterKey.” A subscription to Altucher’s Investment Network is required to get it, which costs $49 for the first six months (normally $299).
- We exposed the much-hyped “AI MasterKey” for free as STMicroelectronics N.V. (NYSE: STM).
- STMicro is a critical SpaceX supplier, but it’s underlying economics fall short of it’s lofty valuation.
Who will emerge as the biggest AI winner? Leave your picks in the comments.