Family Offices Amass $3.8 Billion SpaceX Bet in Boost for Musk

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1:15Learn more at thehartford.com slash risk mitigation. Policies provided by Hartford Fire Insurance Company and its property and casualty affiliates, Hartford, Connecticut. Bloomberg Audio Studios. Podcasts. Radio. News. You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10 a.m. Eastern on Apple CarPlay and Android Auto with the Bloomberg Business App. Listen on demand wherever you get your podcasts or watch us live on YouTube. It is 13F season, and that's always a kind of a fun time in the marketplace because you get to see what some of your favorite investors, what they're buying, what they're selling here.

1:57And that's certainly the case this time. Yichin Shen joins us here. She's an equity supporter for Bloomberg News. She joins us live here on our Bloomberg Interactive Broker Studio. Yichin, talk to us about some of these ultra wealthy individuals, these family offices. What are they buying? Sure, yeah. So I would say for this 13th quarter, lots of attention is going to SpaceX. Because we know SpaceX has this record-setting IPO, right, in June. And it's for the first time, like, the public got to see who are the sort of the earlier investor, private investor on its back. And it turned out from certain filings, more than a dozen family offices at least hold more than$3.8 billion investments through the first of the year.

2:47So that includes a family office from Haya Hotel's Nick Prisar, who hold$1.8 billion investments, and Michael Platt's Blue Crash Capital, and also this super influential finance dynasty backed by Brazil's Marira Salas. each of them hold over 100 million of stake. And also remember, some of these investors are also investors in Tesla and other Elon Musk-listed business empire. So there are a lot of really exciting, fast-moving stocks right now, a lot of excitement around AI and things like that. What is it about SpaceX that has this group of investors so excited? I think so. It's interesting that we don't know when exactly they invested.

3:36It could be before well before the public IPO or before the merge it had with XAI. Actually, it takes to another interesting highlight is that there are lots of college endowment funds also invested in SpaceX, including Harvard Management, which is the endowment for the college. It had$2.2 billion. And they're also the California University of California investment arm. So how it works is usually these college endowment funds, they invest through VC arms, venture capital firms. And through the VC, they could be early investors in SpaceX or way before it became this AI. It was like the rocket science startup, right, for many, many years ago.

4:20So that sort of has just come a long way through until what we see in the public filings. And our good friends up at Cambridge, Harvard, they had a stake in SpaceX, right? Yeah, right. As we just mentioned, they have a$2.2 billion. Nice. Good for them. What are we seeing? Do we know when these people invested? You don't really know, right? Right. Just that it was in the private round before they went public. That's all we really know, right? Yeah, especially for SpaceX, right? We only got to know it because now it became a public company. But yeah, we wouldn't know. And there's also a 45 days of lag between because the 13F is a snapshot of their Q2 portfolio.

5:03It could be possible that they try some of their position or change their portfolio, you know, throughout July because it was a pretty turbulent month for tech and AI stocks. But yeah, that part is a question mark. What are some of the other stocks that are, I guess, generating excitement right now? I think I'm reading that Berkshire has taken another huge chunk of Alphabet. Yeah, that's right. So Berkshire Hathaway, they added roughly another$8 billion in Alphabet. That's a lot. Yeah, that's a lot. That's a lot of Alphabet. And that's on top of the$10 billion private placements they committed in this close before.

5:41And remember, Alphabet was a position initially started by Warren Buffett 2025 a year ago. Now it is run under Greg Abel, but apparently the company is still pretty committed to this tech bet. You know what I've noticed over the last, I don't know, several years, I guess, is that, I mean, particularly looking at these 13 Fs, it's just more and more family offices are showing up here. I mean, family offices, they're becoming serious players out there in the investment world. What do you guys see from your reporting? Yeah, that's a good observation. And I would agree with that trend. And then I would say, yeah, overall, because 30F has the requirements, is that any investment funds, I believe, has more than$100 million or$200 million AUMs, that's the threshold you need to report.

6:28So that's why we're seeing them in the quarterly filings. But otherwise, yeah, they've been very active. It just, you don't, they're also being super under the radar for the most part with their investments. I think that's changing, though, because they're getting so big, these family offices, that they are showing up in some of these public filings. Oh, is this just like a more private wealth coming, or why is there such a boom of private office? Stay with us. More from Bloomberg Intelligence coming up after this. When your options are limited, so are your opportunities. At SIBO, the global exchange that pioneered options trading, we offer more ways to move with the market.

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7:32This is the Bloomberg Tech Minute brought to you by ChatGPT. Now with ChatGPT work. I'm Carol Masser. DoorDash, the largest food delivery company in the U.S., is building its own delivery drones and has gained the necessary FAA approvals to operate them commercially, the latest in its effort to delegate more orders to robots as a way of cutting delivery times. Bloomberg's Natalie Lung reports the company says it has been conducting pilot programs with various restaurants, some of which have seen their order volume grow during the test period. The effort marks an expansion of DoorDash's in-house robotics efforts to reduce reliance on human couriers for some orders, as their wages constitute a key expense to the business.

8:15Drones are also a way for DoorDash to cut delivery times on orders from more remote locations that some dashers may not want. That's the Bloomberg Tech Minute, brought to you by ChatGPT. Put ChatGPT to work on your most ambitious ideas and projects. Get started at ChachiPT.com today by selecting Work Mode. Available on Plus and Pro Plans. Everyone's talking about how AI is transforming work, especially in sales. While the landscape shifts, one thing remains the same. The thrill of closing a deal. Whether it's a gong or a confetti machine, every team has its celebration rituals. Adio is designed for that moment.

8:54It's the agentic CRM that turns customer signals into actionable insights, helping you close deals faster with revenue agents and automations working around the clock. You'll have everything you need to scale your go-to market efforts. Elevate your wins with Adio. Start your free trial at adio.com slash iHeart. You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10 a.m. Eastern on Apple CarPlay and Android Auto with the Bloomberg Business App. Listen on demand wherever you get your podcasts or watch us live on YouTube. Well, we know many things about AI. One of the things we know is it's really expensive and you need lots of capital to build this stuff out.

9:35And it used to be when the tech companies needed capital, they just used their cash on the balance sheet or their free cash flow. AI is so expensive, requires so much capital that these companies are going to the equity markets and the fixed income markets. And today, Alphabet is looking to raise$5 billion in a debt offering, a debut bond offering. where? Australia. Why not? Ed Ludo joins us here, Bloomberg tech host. He's out there in San Francisco. Why do you think that I love Australia? I've been there several times. But why do you think Alphabet's going to Australia to raise five billion Australian dollars?

10:10You gave a perfect summary of what's been happening since the middle of 2025. I mean, for one thing, Australia's bond market's quite big, right? And so the capital is available from there. But Alphabet leads this AI borrowing boom that we've seen. Since the middle of 2025, they'd already done about$114 billion worth, but it was also split, largely US-denominated, but Euro, Swiss franc, etc. So this$3.6 billion kangaroo bond action is kind of diversifying that funding. But you're exactly right. Like even a giant like Alphabet cannot fund CapEx from its own cash flows. And so it needs to go to the capital markets to do that across equity and debt.

11:00But the debt investor seems very willing, you know, to support that offering. What is this money for exactly? Is this data centers? Is this other things? Why do they need such huge amounts of money? So it is for data centers and it is in financial terms for capital expenditures, right? So if you look at Alphabet's CapEx for 26, it's approaching$200 billion. And the expectation is that it will be much bigger in 2027 and bigger still in 2028. Something that's really interesting is that CapEx doesn't just go up because you've got to build more stuff, right? It doesn't just go up because you're saying, okay, well, I did 10 data centers, now I need to do 20.

11:38It's also the cost environment. So like labor, construction, materials, power, that is also seeing some inflationary effects. And so the CapEx numbers also need to rise to meet that environment. And what are the companies saying about longer term CapEx as it relates to AI? I guess I'm concerned that this extraordinary high level of CapEx coming from many of these tech companies, this is the new normal. You don't just build your AI and then it's there forever and your CapEx can go back down. It seems like this may be the new level of borrowing. Do the companies admit that or do they say, no, this is kind of a one time five or year or whatever?

12:19There is a distinction probably then between what their capital expenditure intentions are and what their borrowing intentions are. Right. And what Alphabet had said after the last tranche of dollar denominated bonds is, look, we plan to borrow from the U.S. debt market twice a year. And the signal that the market took from that very explicit explanation was we've done twice this year. Are you now done? You know, and so the BI thesis is really clear. There's a lot of demand out there, hundreds of billions of dollars of demand to support that borrowing. But there is also the psychological aspect of like, when do they hit pause and stop?

12:59And the 3.6 billion Aussie offering is very small on a dollar basis compared to the 20, 25 billion they did in the two dollar denominated ones. So it seems like they're kind of tapering off a bit. So the bond market has been the subject of a lot of news this summer. Yields have been up a lot. Does this potentially affect government bond yields when there are all these bonds being issued by huge companies? You know, I might be convincing because of my British schoolboy accent and Welsh charm, but the bond market is not my forte. Technology is. So I mean, the one thing I would say is that you can look at some of the post issuance pricing action of those technology bonds and corporate bonds and say, in some cases, SpaceX, the most notable, that those underperformed and trailed away.

13:50And the big pitch is the premium over treasuries, right, in the first place. That was partly what some of the appetite was driven by. But yeah, I ain't a fixed income guy. I'll punt it back to you. So, Ed, real quick, Anthropic, saw some Bloomberg reporting here. $11.45 billion in revenue in the second quarter, 14-fold increase. What is going on there? Yeah, I mean, that's real revenue, right? They're prelim numbers, but that's data presented to prospective investors in a document that Bloomberg has seen, which would indicate they're having these meetings with prospective investors ahead of an IPO or as part of the process.

14:27The other data point is that they had adjusted positive operating income. And like if you look at some of the AI linked stocks that are moving today, it's probably not just the idea that Anthropik's trapping towards an IPO, that it will happen. But also like they're finding a way to do it without endless losses. Right. And lots of those names, Amazon, Alphabet, have direct investment exposure to Anthropik. But it kind of is validation of the AI trade right now. Stay with us. More from Bloomberg Intelligence coming up after this.

14:59This is the Bloomberg Tech Minute brought to you by ChatGPT. Now with ChatGPT Work, I'm Carol Masser. DoorDash, the largest food delivery company in the U.S., is building its own delivery drones and has gained the necessary FAA approvals to operate them commercially, the latest in its effort to delegate more orders to robots as a way of cutting delivery times. Bloomberg's Natalie Lung reports the company says it has been conducting pilot programs with various restaurants, some of which have seen their order volume grow during the test period. The effort marks an expansion of DoorDash's in-house robotics efforts to reduce reliance on human couriers for some orders, as their wages constitute a key expense to the business.

15:42Drones are also a way for DoorDash to cut delivery times on orders from more remote locations that some dashers may not want. That's the Bloomberg Tech Minute brought to you by ChatGPT. Put ChatGPT to work on your most ambitious ideas and projects. Get started at ChatGPT.com today by selecting Work Mode. Available on Plus and Pro Plans. Everyone's talking about how AI is transforming work, especially in sales. While the landscape shifts, one thing remains the same. The thrill of closing a deal. Whether it's a gong or a confetti machine, every team has its celebration rituals. Adio is designed for that moment.

16:21It's the agentic CRM that turns customer signals into actionable insights, helping you close deals faster with revenue agents and automations working around the clock. You'll have everything you need to scale your go-to market efforts. Elevate your wins with Adio. Start your free trial at adio.com slash iHeart.

16:43Every sale comes down to a single second. The one between buy now and maybe later. PayPal is built to help your business win that moment. With a checkout experience that feels certain, reliable, and familiar. With a global two-sided network and hundreds of millions of buyers who already know us. All to keep you in control however buying happens next. New markets. New AI-powered selling services. A whole new agentic era where you decide how your business will show up and stand up. PayPal is built to help your business come out ahead. We're built for payments, built for growth, built for agentic.

17:28PayPal Open, built for all business. Visit paypalopen.com to get started. That's paypalopen.com. You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10 a.m. Eastern on Apple CarPlay and Android Auto with the Bloomberg Business app. Listen on demand wherever you get your podcasts or watch us live on YouTube. I said it before, I'll say it again. I just could not invest in biotech stocks. It is just too volatile. I mean, it is a hit or miss. The test works. Stock doubles. If it doesn't, it goes to zero. When they hit, though, it can be so huge. Unbelievable. Unbelievable.

18:11So here's one where not working out so well. AstraZeneca is stopping a clinical trial of the experimental drug. I'm not going to pronounce it after it didn't look set to help fight lung cancer better than existing therapy. So I'm going to go to Sam Fazelli. He does all this health care stuff for Bloomberg Intelligence. He's based in London. Have no idea where he is right now. But Sam, talk to us about AstraZeneca and just about this drug in particular, but just how these big pharma companies kind of try to pursue a portfolio approach of drug development. Yeah. Yeah. So, Paul, first of all, I have to say, don't worry about biotin.

18:47Just give all your money to Uncle Sam. You already committed to that in the previous segment, right? That's right. And let's talk about this. This is clinical trials are like that. You want to get a drug for a disease. You've got to go through this. You've got to prove, unlike some people would like to just make it up whether something is bad or causes autism or not. You've got to prove that it works, and you've got to prove that it's worth the side effects. Here, they ran the test in a very difficult group of patients, ones who don't normally respond to even the best drug we have today, which is Merck's Keytruda, and it didn't work out.

19:21But they had two other results that came out today. In fact, one of them was probably more relevant, which is why AstraZeneca is not down, right? So I think it's the way you report it, Paul. At the end of the day, three trials came out today. Two of them hit. One of them didn't. That, to me, is a win. What are some of the exciting things on the horizon right now? Obviously, GLP-1s have been such a huge market mover, such an economic force. But I feel like over the summer, it's just been all tech news in the markets. Is there anything on the horizon that you really have your eye on right now? Yeah, I mean, in terms of drugs, there's always something exciting coming up.

20:01And if we look at cancer specifically now, because the current conversation is cancer, we have a revolutionary drug coming from Revolution Medicines for pancreatic cancer. Something that is going to at least fire the starting guns and actually treating these patients, giving them a chance of doubling their survival. And of course, in all these numbers, there are ones who are much better treated in terms of the, you know, you go with the mean and median. but there are people in there who get much better efficacy. And it is the starting uns because we need to deal with side effect profile there.

20:35So that's coming, and that's going to really accelerate efforts there. There's a whole load of other stuff going on. There's other versions of these GLP-1s coming up. There are drugs for neuropsychiatric diseases that are making big waves. There are drugs for reducing your cholesterol, oral drug that recently approved. There's a lot happening. Unfortunately, AI is the subject de jour, and it will keep sucking the oxygen out of the room. How does AI apply to your business, Sam, in the biotech and the pharma space? I would think it would make the average scientist in the lab smarter, better. How much time do you have, Paul?

21:15Three minutes, 12 seconds. Oh, shoot. The answer to that is actually exactly what you just said. The point isn't to replace scientists. Remember, we've got a brain. If you're, for example, utilizing your brain to understand, say, neuroscience and how neurons work, even there, you might be an expert in visual field or eyes or whatever. You don't know much about the nose and olfactory system. AI is able to synthesize that enormous amount of data and help you make sure that you're not missing something that someone else has seen in a completely unrelated field. as an example, right? So you keep using these things.

21:57You bring the biology into bear with the massive amount of data analysis. We're going to see 20, 30 % of time shaved of drugs get into market. And we're going to see better biology married to people. You need the people in there. You can't just do it on its own at the minute. Sam, I was looking at my weather app and I clicked on London, 80 degrees as far as the eye can see. Now, in New York, no problem. We just crank up the AC. What are you people, what are you doing over there with this heat? You guys don't have air conditioning by March. I think they have air conditioning. You have air conditioning.

22:29That's okay. We have little mobile fans that we carry around. That's enough for us. And marry that. And also, just look a bit further out, Paul. It's all coming back. Rain is coming. Our umbrellas will be out soon. Don't worry. Stay with us. More from Bloomberg Intelligence coming up after this.

22:48This is the Bloomberg Tech Minute brought to you by ChatGPT. Now with ChatGPT Work, I'm Carol Masser. DoorDash, the largest food delivery company in the U.S., is building its own delivery drones and has gained the necessary FAA approvals to operate them commercially, the latest in its effort to delegate more orders to robots as a way of cutting delivery times. Bloomberg's Natalie Lung reports the company says it has been conducting pilot programs with various restaurants, some of which have seen their order volume grow during the test period. The effort marks an expansion of DoorDash's in-house robotics efforts to reduce reliance on human couriers for some orders, as their wages constitute a key expense to the business.

23:31Drones are also a way for DoorDash to cut delivery times on orders from more remote locations that some dashers may not want. That's the Bloomberg Tech Minute brought to you by ChatGPT. Put ChatGPT to work on your most ambitious ideas and projects. Get started at ChatGPT.com today by selecting Work Mode. Available on Plus and Pro Plans. Everyone's talking about how AI is transforming work, especially in sales. While the landscape shifts, one thing remains the same. The thrill of closing a deal. Whether it's a gong or a confetti machine, every team has its celebration rituals. Adio is designed for that moment.

24:10It's the agentic CRM that turns customer signals into actionable insights, helping you close deals faster with revenue agents and automations working around the clock. You'll have everything you need to scale your go-to market efforts. Elevate your wins with Adio. Start your free trial at adio.com slash iHeart.

24:32Every sale comes down to a single second. The one between buy now and maybe later. PayPal is built to help your business win that moment. With a checkout experience that feels certain, reliable, and familiar. With a global two-sided network and hundreds of millions of buyers who already know us. All to keep you in control however buying happens next. New markets. New AI-powered selling services. A whole new agentic era where you decide how your business will show up and stand up. PayPal is built to help your business come out ahead. We're built for payments, built for growth, built for agentic.

25:17PayPal Open, built for all business. Visit paypalopen.com to get started. That's paypalopen.com. You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10 a.m. Eastern on Apple CarPlay and Android Auto with the Bloomberg Business app. Listen on demand wherever you get your podcasts or watch us live on YouTube. Here's a story I did not have on my bingo card at all for 2026. The sale of the Los Angeles Lakers last week came out of nowhere for me. And I follow the business of sports pretty closely. The CEO of Guggenheim Partners and the owner of the L.A. Dodgers flipped the Lakers within a year and has explored other steps to pay down loans from his insurers.