Andrew Feldman on IPO Challenges, Space-Based Data Centers, and $100B Earth Observation Market

• Going public involves significant administrative burdens that may not contribute to business growth.
• Timing an IPO correctly often comes from learning through past mistakes.
• Public markets provide liquidity and enhance credibility with clients.
• Space technology is deeply integrated into daily life, often unnoticed.
• Military applications are a major revenue driver for companies like Planet.
• Miniaturization of satellites is transforming space technology, similar to past computer revolutions.
• The market for earth observation data is rapidly growing, with estimates reaching up to $100 billion.
• Future launch costs could make space-based data centers more economical than ground-based ones.
• Solar panels in space can harness significantly more energy than those on Earth.
• Within a decade, most computing could shift to space, potentially generating trillions in revenue.
• The shift to space-based infrastructure could surpass current space businesses in scale.
• Understanding the intersection of AI and hardware is crucial for future technological advancements.

Andrew Feldman is the co-founder and CEO of Cerebras Systems, the AI chip company building processors and systems for large-scale machine learning. He previously co-founded and led Yield Software, and at Cerebras he has helped bring the company to market as a public AI infrastructure player.

• Going public often involves unnecessary meetings and paperwork that don’t add value.

• I think it’s really difficult to overestimate the amount of garbage that’s involved in going public…

  — Andrew Feldman

• The IPO process can create a disconnect between public perception and actual business progress.
• Timing an IPO correctly is often learned through years of experience and mistakes.

• I think the answer is by getting it wrong for a decade.

  — Andrew Feldman

• Public markets provide liquidity for early shareholders and enhance business credibility.

• The going public gives you access to liquidity for early shareholders…

  — Andrew Feldman

• Despite the challenges, going public can be a strategic move for business growth.

• Space technology is integrated into everyday life through applications like communications and GPS.

• Every time you use a phone you’re either using communications using satellites…

  — Andrew Feldman

• Satellite technology impacts daily activities more than most people realize.
• The pervasive influence of space technology emphasizes its relevance to the general public.
• Understanding satellite technology can provide insights into broader societal implications.
• Space technology plays a crucial role in modern communication systems.
• The integration of space technology is expected to grow as technology advances.
• The impact of space technology on daily life is often underestimated.

• Planet’s revenue is significantly driven by military applications, comprising about 60% of their revenue.

• It’s about 60% of our revenue today.

  — Andrew Feldman

• Military contracts are a major component of the space industry’s business model.
• Understanding the customer base is crucial for companies like Planet.
• The reliance on military applications highlights the strategic importance of space technology.
• Military applications drive significant revenue in the space sector.
• The space industry is heavily influenced by governmental and military needs.
• Companies in the space sector often align their business models with military requirements.

• The miniaturization of satellites is revolutionizing space technology.

• We’ve had a miniaturization of satellites so that the same satellite that used to cost a billion dollars…

  — Andrew Feldman

• This shift is similar to the transition from mainframe computers to desktops.
• Miniaturization allows satellites to be more cost-effective and efficient.
• The impact of satellite miniaturization parallels historical technological transitions.
• This technological shift is expected to have a significant impact on the industry.
• Miniaturization enables more versatile and accessible space technology.
• The revolution in satellite technology is transforming how space applications are developed.

• The market for earth observation data is estimated to be between $75 to $100 billion.

• I estimate there’s 75 to $100,000,000,000 market just on earth observation…

  — Andrew Feldman

• Satellite data is becoming increasingly important in the market.
• The integration of AI with satellite data is unleashing new opportunities.
• This market growth reflects the increasing demand for satellite-based insights.
• Understanding market trends is crucial for leveraging satellite data effectively.
• The potential for growth in this market is significant.
• The combination of satellite data and AI is driving innovation in the industry.

• In a few years, it will be cheaper to launch data centers into space than to build them on the ground.

• When launch costs come down to about 200 to $300 a kilogram it would be cheaper…

  — Andrew Feldman

• Current launch costs are around $1,000 per kilogram, but are expected to decrease.
• Technological advancements are making space-based infrastructure more feasible.
• Solar panels in space can gather significantly more energy than those on the ground.

• You can put a solar panel in a sun synchronous dawn dusk orbit…

  — Andrew Feldman

• Space-based data centers could revolutionize how data is stored and processed.
• The feasibility of space-based data centers is increasing with technological advancements.

• Within ten years, most compute will be put in space, potentially generating trillions in revenue.

• I think no question within ten years most compute will be put in in space…

  — Andrew Feldman

• This shift could surpass current space businesses in scale.
• The economic implications of space-based computing are significant.
• Understanding the current state of space technology is crucial for future developments.
• The transition to space-based computing represents a major technological shift.
• This prediction highlights the potential for growth in the space industry.
• The move to space-based infrastructure could redefine computing and data processing.