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Speaker 1 (00:02):
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(00:23):
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Speaker 2 (00:32):
Everybody's familiar with NASA, of course, Axiom Space perhaps not
as much. Axiom is focused on developing private space stations,
human spaceflights, spacesuits and more. It's kind of rocket science,
I guess you could say. Tesh Paul Batia is the
CEO of Axiom Space. He joins us here in the
Bloomberg Interactive Brokers Studio.
Speaker 3 (00:50):
Teh, it's great to have you here with us. Welcome, Welcome,
Thanks for your patience. It's a little bit of a
crazy day, and I kind of want to start there
because I feel like it would be remiss not to
talk to you about the macro considering just the last
twenty four hour or so news cycle. I feel like
space exploration is something that makes us think about how
small we are in comparison to the greater universe and
(01:11):
to not let the little things warriors, and yet we
have some very big things coming at us, continuing to
come at us. Does the macro worry you? How does
it impact you as a CEO and a leader?
Speaker 4 (01:23):
Yes, well, thank thank you so much for having me.
You know, an Axiom Space, we're developing the products and
platforms for humanity to thrive off Earth. And you said
you want to talk about the macro and how the
geopolitical situation right now impacts us. If we were to
go a little more macro than that, you know, up
(01:44):
to the level of space. Looking down space has proven
to be the ultimate experiment for international diplomacy through crisis.
You know, the International Space Station is a collaboration of
fifteen nations over the last couple of decades and over
the last few years access to many more nations thanks
(02:06):
to companies like Axiom Space and our public private partnership
with NASA and other companies. What you really see is
through the crisis times, what's happening down here is not
really what's reflected up there. They're working together to develop
this platform in this lab for the future of humanity,
and what we see is what's happening down here does
(02:30):
impact a lot of decision making, but ultimately up there
it is the ultimate collaboration. And if you think about
the International Space Station, it's the largest object ever created
by humans. It is the most expensive product created by
humanity in a time where it wasn't as connected in
real time as this. You know, think about thirty years ago,
(02:52):
they were doing this across languages, across borders on phones,
you know, in the Soviet Union, in the US, in Europe, Japan,
and Canada, and they got that thing built.
Speaker 2 (03:03):
You know, speaking of collaboration, I'm curious about the recent
announcements that AXIOM has made with foreign governments. I mean,
we're talking Egypt, Czech Republic, Portugal, among others. Perhaps there
are some out there who might say that it looks
like there could be AXIOM being a private sector arm
of the State Department, essentially in the sense of boosting
(03:25):
soft power globally, sort of as the US has used
in the past space to diplomacy to compete against China.
I'm curious about your take on this, and you know,
if you have any coordination with the State Department or
NASA when it comes to these deals.
Speaker 4 (03:40):
You know, it's spot on. I wouldn't necessarily say it
as a space diplomacy arm of the State Department. What
I'd say is what Axiom has proven is commercial companies
can drive US diplomatic interests overseas. So we're a private company,
We're an American company.
Speaker 3 (03:57):
Is this the new soft power?
Speaker 4 (03:58):
It is? And it's exactly what I mean. I would
expand that a little bit also given the light of
the news today. It's power, it's hard power, it's soft power,
and its economic power. And what you see is a
eight year old startup and you were saying that it's
rocket space, rocket science. I joined the company a little
(04:22):
under four years ago. I invested it, just became CEO.
I invested in the company about five years ago. I
don't have a space background besides being fascinated since I
was three years old. Right, I'm not a rocket scientist,
I'm not a billionaire. But here this outsider from the
startup world, the tech world, the Google world, comes into
space and in a very short period of time can
(04:42):
have this outsized impact. And what we saw in this
last week. I just arrived from Florida. We were down
there for our launch.
Speaker 2 (04:49):
We can to talk about that in a minute.
Speaker 4 (04:50):
We were at tables and conversations with NASA SpaceX, the Russians,
the Indian Space Agency, the European Space Agency, the Hungarian
is in the Polish This is the future of international collaboration.
And right in the center in the front was a startup,
an American startup, so being able to drive US diplomatic
(05:13):
interests but also overall diplomatic interests. You mentioned the Chinese,
they've had a space station since twenty twenty two, fully manned. Yeah,
we remember the first space race, which was the US
versus the Soviet Union. The second space race is China
versus the West and its industry, and the third space
(05:33):
race is the first to create the next applications that
are going to change humanity. So we see this rapidly
scaling from sixty years down to six years to the
next six months. I think you're going to see rapid
development in space commercials.
Speaker 3 (05:47):
I have to ask you, my father was a rocket
scientist and involved in the first space race, so I
kind of liked tim like, we just look love this world.
But what I'm curious about is it was a race, yes,
for the United States to succeed before others and it
just what you are laying out for me is a
lot more collaboration between nations and regions of the world,
(06:08):
where I feel like our headlines are often showing all
of those groups that you were talking about, kind of
with stress points and tensions. So tell me, I mean,
does that really show a much more true picture of
what is going on globally in terms of relationships. Help
me make sense out of it?
Speaker 4 (06:26):
I think it does. And this comes back to your
first macro question, and I will start macro and then
I'll bring it very micro back to the first space race,
the second space race, and what I think is a
third space race. The macro point here is a little
more philosophical, but it is actually a collaboration question. Is
no single country, no single company can get off the
(06:46):
planet alone. And if you believe we are destined to
be off planet, to be multiplanetary, which I do, we
have to do it together. So that's what you're seeing.
It can't be done alone, despite what you're hearing down
here and what you see on Twitter, and these problems
are very very It's not a.
Speaker 3 (07:06):
Race though, to be the first nation.
Speaker 4 (07:08):
To It's a different race. So the first space race
getting back to your father's time, was actually a race
two countries. It was so hard and expensive and impossible
that two countries were racing to get the first human,
the first astronaut off planet. In those sixty years following that,
there was an average of about eight humans per year
(07:29):
that went off planet. In the last six years that
average has jumped to twenty two people per year. So
in just the last six years we've almost tripled the
number of people that go up. Sixteen of those were
with Axiom, which is just in the last three years.
Speaker 2 (07:43):
Can you explain TAJ exactly where you work within the
context of SpaceX for example, I think a lot of
people are familiar with SpaceX. The launches get so much attention,
the Dragon capsule and what it does with the ISS.
Just explain where you sit in the ecosystem.
Speaker 4 (08:00):
Absolutely. So when we pull these missions together, like the
ax for Mission India, Hungary, Poland pulland through the European
Space A and C, Axiom is pulling that mission together.
So we are going out getting the customers, creating the crew,
procuring the vehicle, SpaceX being the launch provider, getting the
permit from the ISS. Primarily Nasai guys are essentially the producer.
(08:22):
That's a great way of putting it. Actually, I don't
think that language would necessarily translate to the space industry.
Hollywood and Houston speak very different languages. It's both English,
but it's very different languages Hollywood need.
Speaker 2 (08:35):
But that sounds like what you're describing to me. To
make it happen.
Speaker 4 (08:38):
Yeah, and think about when a producer puts together a package, right,
that's also an order that probably wouldn't resonate in the
space industry. That packaging has a ton of value. Yes,
the physical film or theater or studio or camera groups,
but think about the intellectual property. Think about the products
(08:58):
that created, get our creator and the derivatives that create value.
So when we pull together these missions, there isn't There
is a very large element of mission integration, training, dayload integration,
but the key is locking in the demand. Those countries
are trusting us, and these decisions aren't made at a
space agency level. These are done at the prime minister
(09:21):
president level. You're not sending up a hum into space
with a startup with an American launch company without significant
consideration and trust.
Speaker 2 (09:30):
You mentioned you were just back from Florida, where you
were for the x four mission launch. It was ultimately scrubbed.
When are we going to see a new date? And
what exactly have you been told about leakage on the ISS?
Speaker 4 (09:43):
Sure, So the mission was scheduled to launch earlier this week.
We had some weather delays, which is normal for a
lot of our guests who have gone down to Florida
and wanted to see an anticipated a launch. While it's
normal for the space business, it's not really normal for
someone who flew down to Florida to see, but it happens.
I've been through four launches myself with Axiom now and
(10:05):
the delays usually go you know, sometimes months and weeks,
then day by day based on minor things. So we
had a weather delay, totally normal. There was some data
that came back from the launch vehicle which was resolved,
also completely normal. Sometimes that happens during a test, a
readiness review. Sometimes it happens on the launch pad. Better
(10:25):
to happen before than on the launch pad. But these
are all measures for safety. Then this issue on the ISS,
the leaks have been happening for a while. There is
an effort to improve it, to fix it. The ISS
is old, you know, it's a thing you can think
of it as a piece of equipment, not really like
a building. It has a lifespan, which is it's coming
(10:48):
to its end. The whole reason Axiom exists is we
won an award. We are the exclusive company, the only
company that can connect its modules commercial private modules to
the ISS. The reason for that is to prevent a
gap in human presence in lower thorbit. So Axiom connects
what I'd say is a bridge, but it's actually physically
(11:09):
a tunnel onto the ISS. We make sure we preserve
whatever assets and value we have on the ISS. We
connect our second module, and then we can separate and
be a free flying commercial platform. So with the ISS itself,
that's where we go right now. So in this production,
imagine this as the studio or where we're going for
(11:31):
So their risk profile and their safety profile is what
we follow. But remember our risk profile is a little different.
When NASA sends up astronauts with SpaceX, they're sending us astronauts.
We are sending other countries astronauts. So we don't take
any risks.
Speaker 2 (11:49):
Here since you rely on SpaceX for launching. What happens
if Elon Musk has a fallout with President Trump and
the US decides to move away from SpaceX, what happens
to you.
Speaker 4 (12:00):
So what we have right now is what i'd call
a supplier constrained market, and that's okay. There's only one
way to go up and down on what SpaceX has
done is phenomenal, and I really hope it doesn't go away,
right It's important, it's important. It's very important. What I
see from SpaceX's point of view and their mission. I understand,
(12:22):
not the feud that's going on, not the rhetoric, not
what's on Twitter.
Speaker 3 (12:26):
None of us understand it to be there.
Speaker 4 (12:28):
But I can understand the magnitude of what it takes
to get off planet. Now, what they've created from a
launch standpoint, it is phenomenal. It's elite, it is, you know,
really a wonderful thing for humanity, and i'd hate to
see it go away. With that said, in a supplier
constrained market, certain dynamics are created so to be the
(12:50):
other power player. If supply is locked in, you want
to lock in demand because that gives you leverage. And
we've seen this model. You brought up the produce angle.
I got my start at ESPN in media, and we
can go back to the seventies and eighties of cable
and satellite, how content companies, how Bloomberg TV probably got
its opportunity, how ESPN, MTV, CNN, MTV when there was
(13:15):
the cable satellite wars. Who benefited the content companies and
the consumers. So I believe we're in that kind of
market dynamic right now. So our hypothesis really has about
the customer demand.
Speaker 3 (13:27):
One last question just got about thirty seconds we just
talked about the iss Elon has called for it to
go out of service earlier than schedule, just quickly. Is
that at all possible?
Speaker 4 (13:37):
Well, yes, I mean it's already beyond schedule, right, it's
been extended by Congress, which is also a good thing.
Speaker 3 (13:43):
Yeah, But the.
Speaker 4 (13:44):
Whole reason Axiom exists is to replace it up.
Speaker 3 (13:47):
To replace it where it's it's actually both.
Speaker 4 (13:51):
So to call for the end of it sooner, I
don't think it's up to him. May be up to
the lifespan of the equipment up there, to the safety
of it, but that's what axiom is here for. So
once we're attached and we preserve it, yes, of course
we should.
Speaker 3 (14:05):
When you think about us being developed on other planets,
and I mean are we talking twenty years, fifty years?
Just quickly?
Speaker 4 (14:11):
I think it's in our lifetime. I really believe it's.
This is the moment, Lied.
Speaker 2 (14:16):
We have twenty seconds left. You got to tell us
about an update on fun Braising capital right now. We
reported in March that you're finalizing a new funding round
could be as much as one hundred million dollars at
a pre money valuation of two billion dollars. Thirty seconds
an update.
Speaker 4 (14:30):
I can't confirm or deny the news have been out there.
I'll tell you I'm an investor in Axiom in the
Series A, and we will be the first to tell
you once we can confirm the information.
Speaker 1 (14:41):
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