Group 1 - Dingdong Maicai announced that its business and team are operating normally and will continue to provide high-quality products and services [2][4] - Dingdong Maicai will implement its ninth consecutive year of uninterrupted service during the Spring Festival, ensuring a stable consumer experience [4] - Meituan announced plans to acquire Dingdong Maicai for $717 million (approximately 4.978 billion RMB) [4] Group 2 - Alibaba's new generation model Qwen3.5 is expected to be released soon, featuring a new mixed attention mechanism and potential visual understanding capabilities [6] - The model may include at least a 2 billion parameter dense model and a 35 billion parameter MoE model, with expectations of open-sourcing during the Spring Festival [6] - Xiaohongshu is developing an AI video editing product called OpenStoryline, which allows users to generate videos through conversational prompts, enhancing content creation efficiency [8][9] Group 3 - Elon Musk stated that SpaceX aims to build a self-sustaining city on the Moon within the next 10 years, with a faster construction timeline compared to Mars [12] - Musk emphasized that lunar missions can occur every 10 days, while Mars missions are limited to every 26 months [12]

Third Quarter Fiscal 2026 Financial Results February 6, 2026 GRAHAM CORPORATION © 2025 GRAHAM CORPORATION, ALL RIGHTS RESERVED 1 Safe Harbor Regarding Forward Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as "expects," "future," ...

Core Viewpoint - The U.S. Congress is raising concerns about potential national security risks associated with Chinese investments in SpaceX, led by Senators Elizabeth Warren and Andy Kim, who have requested an investigation by the Department of Defense [1][3]. Group 1: Congressional Concerns - Senators Warren and Kim have expressed worries that Chinese investors may secretly acquire shares in SpaceX, which could pose a national security threat [1][3]. - The senators have requested the Pentagon to disclose any Chinese ownership in SpaceX and assess whether the company needs to implement measures in accordance with the Foreign Ownership, Control, or Influence (FOCI) rules [3][5]. - They have set a deadline of February 20 for the Department of Defense to respond to their inquiries regarding foreign investments in SpaceX [3]. Group 2: SpaceX's Operations and Financials - SpaceX, founded by Elon Musk, plays a crucial role in U.S. national security by launching military and intelligence satellites and operating the Starlink communication network [5]. - The company has reportedly received billions in federal contracts since its inception in 2002 but has paid little to no federal income tax, raising eyebrows among watchdog organizations [6]. - Musk has projected that SpaceX's revenue could reach $15.5 billion by 2025, with significant growth attributed to the Starlink satellite internet service, which has approximately 6 million users [6].

Core Viewpoint - A potential merger between SpaceX and xAI is drawing attention to Elon Musk's companies, with speculation about a possible tie-up with Tesla Inc [1] Group 1: Tesla Stock Performance - Tesla stock is currently showing weakness, raising questions about its performance [1] - Cathie Wood's Ark Invest has added Tesla stock to its Space ETF, acquiring 35,766 shares, which represents 1.99% of the fund's assets [2][3] Group 2: Ark Invest's Strategy - The addition of Tesla to Ark Invest's Space & Defense Innovation ETF may indicate a strategic move in anticipation of a merger with SpaceX/xAI or due to the fund's new focus on adaptive robotics [3][8] - Ark Invest holds significant stakes in Tesla across several ETFs, with Tesla being the largest holding in Cathie Wood's portfolio [4] Group 3: Future Prospects for SpaceX - There are speculations about a potential IPO for SpaceX, possibly aligning with Musk's birthday and planetary alignments, although no official filing has been made [5] - Investor Chamath Palihapitiya suggests a reverse merger to fold SpaceX into Tesla, while analyst Dan Ives notes a growing chance of a combination between Tesla and the newly formed SpaceX/xAI [6] Group 4: Current Holdings Overview - As of January 31, Ark Invest's holdings include SpaceX at 11.23% of assets, xAI at 6.31%, and Tesla at 1.05% [7]

Core Insights - Alphabet Inc's investment in SpaceX, made in 2015 for $900 million at a $12 billion valuation, has significantly appreciated, potentially worth close to $100 billion today [1][2] - The proposed merger between SpaceX and xAI could lead to a combined valuation of approximately $1.25 trillion, with Alphabet's stake estimated to be worth $87–$90 billion, and possibly reaching $100 billion if an IPO occurs in mid-2026 [2] - Alphabet recorded an $8 billion unrealized gain in early 2025 due to the increase in SpaceX's valuation, highlighting the hidden value of this investment [3] Investment Implications - Many investors focus on Alphabet's core businesses like search, ads, and AI, overlooking its significant stake in SpaceX, which could serve as a powerful catalyst for growth [4] - The investment in SpaceX represents Alphabet's best return on investment, surpassing returns from its own products like Pixel and Fiber, emphasizing the value of strategic investments [5] - Alphabet's balance sheet includes a substantial asset in the form of a private stake in SpaceX, which could soon translate into significant financial returns [5]

Core Viewpoint - SpaceX is advancing its vision of transforming the night sky into a solar-powered AI brain by proposing a satellite system that could deploy up to one million satellites to support AI computing needs in space [1][8]. Group 1: FCC Application and Approval - The Federal Communications Commission (FCC) has accepted SpaceX's proposal for a "non-geostationary satellite system" aimed at relocating high-energy AI computing to space [2]. - The FCC is seeking public comments on the application, with a deadline set for March 6, 2026 [4]. Group 2: Technical Details of the Satellite System - The proposed satellite system will operate at altitudes between 500 kilometers and 2000 kilometers, utilizing a sun-synchronous orbit to maximize solar energy [9]. - The network will connect with SpaceX's existing Starlink system, allowing for data routing and processing in orbit before transmission to ground stations [10]. Group 3: Strategic Implications and Future Plans - SpaceX's satellite project is described as a step towards achieving a "Type II Kardashev civilization," which involves harnessing energy from a star system [11]. - The project is also a key driver for SpaceX's potential initial public offering (IPO), which could raise billions of dollars [11].

Company Overview - SpaceX is recognized as Elon Musk's most successful venture, revolutionizing the space industry and establishing a multibillion-dollar business primarily through government contracts and a satellite communications network, with few credible competitors [1] - In contrast, XAI Holdings, which encompasses Musk's AI startup and the social network X, is burdened with billions in debt, faces strong competition, and is under increasing regulatory scrutiny due to issues with its chatbot, generating minimal revenue compared to SpaceX [2] Financial and Strategic Developments - XAI has benefited from a network of contracts and investments among Musk's ventures, reflecting a pattern of circular deals typical in the AI sector, but these are confined to Musk's business empire [3] - Musk announced plans to merge XAI with SpaceX, valuing the combined entity at $1.25 trillion ahead of a potential IPO, which could attract a wider range of Wall Street investors and initiate a competitive push for AI data centers in space [4] - The merger is perceived by some as a strategic move to rescue XAI, which has struggled financially, similar to previous instances where Musk's ventures have supported one another [6] Debt and Financial Challenges - X, previously Twitter, has faced significant financial difficulties post-acquisition, with its revenue declining nearly 50% since the $44 billion buyout in 2022, and it continues to incur substantial monthly interest payments on approximately $12.5 billion in debt [6] - The ongoing financial struggles of Musk's ventures raise concerns about the sustainability of their business models, as highlighted by comments from industry observers regarding the potential for further mergers if financial conditions do not improve [7]

Company Overview - SpaceX is currently a private company but is expected to go public in June 2026, indicating a significant upcoming transition for the company [1]. Industry Insights - SpaceX is recognized as a dominant force in the aerospace industry, reflecting its strong position and influence within the sector [1].

Core Viewpoint - SpaceX has completed the acquisition of its AI startup xAI, creating a new entity valued at $1.25 trillion, making it the most valuable private company globally, marking a significant step in Elon Musk's technology empire across space, AI, and communications [2] Group 1: Acquisition Details - The acquisition was conducted as an all-stock transaction, with xAI becoming a wholly-owned subsidiary of SpaceX [2] - Musk envisions this deal as a means to create a highly integrated innovation engine that spans AI, rocket technology, and space internet [2][3] Group 2: Strategic Rationale - The core motivation behind the acquisition is the increasing demand for computational power and energy in AI, which is nearing the limits of traditional ground data centers [3] - Musk argues that space-based AI (or space-based computing) is the only viable path for scaling AI in the long term [3] Group 3: SpaceX's Market Position - SpaceX holds a dominant position in the commercial launch market, completing 98 launches in 2023, which accounts for approximately 44% of global launch activity [4] - The company is projected to complete a total of 138 launches in 2024, including Starship test flights [4] Group 4: Starlink's Revenue Contribution - Starlink, SpaceX's low Earth orbit satellite internet project, is a significant revenue driver, contributing approximately 50% to 80% of the company's income [5] - Starlink has deployed thousands of satellites and serves over 9.2 million active users across 155 countries, making it the largest satellite operator globally [5] Group 5: Future Outlook - Musk estimates that within the next two to three years, space could become the lowest-cost option for AI computing, potentially accelerating the development of AI models and data processing [11] - This cost advantage positions SpaceX to dominate the emerging space-based AI market [11]

Core Viewpoint - A merger between Tesla Inc. and SpaceX does not make mathematical sense for Tesla's shareholders unless significant cost or revenue synergies are identified [2] Financial Implications - Tesla's stock experienced a rally of over 3% following merger speculation, while SpaceX is preparing for a potential public listing with a market cap of $800 billion at a 400x P/E ratio [3][4] - The merger would require Tesla to issue 35% new shares to align with SpaceX's valuation, resulting in a combined market cap of $2.3 trillion, compared to Tesla's current $1.5 trillion at a 200x P/E ratio [4] Shareholder Concerns - Existing institutional shareholders may be hesitant about the uncertainty of profits from space travel and communications, potentially leading to a sell-off of Tesla shares [5] - The dilution of shares by 35% is viewed as excessive given the differing P/E ratios of the two companies [4] Industrial Logic - The rationale for a merger lacks clarity, as it may not address the concerns of Tesla's shareholders despite the operational benefits it could provide to Elon Musk [6] External Opinions - Investor Michael Burry has expressed skepticism about the merger, labeling Musk as a "desperately incentivized futurist" [7]