Why heavy AI CapEx is rational now

Elon Musk has built more category-defining companies than any founder alive — and Sequoia Capital and Partner Shaun Maguire have backed five of them: SpaceX, xAI, Neuralink, The Boring Company, and X.

In this episode of Sourcery, Shaun breaks down how Elon builds trillion-dollar companies, why SpaceX may be the greatest company, largest IPO and wealth creation event of all time, and why he believes Elon is still massively underrated despite his global impact.

We dive into SpaceX’s IPO, Starlink’s explosive growth, data centers in space, direct-to-cell from orbit, xAI, and the unique way Elon builds long-term potential energy before unleashing scale.

Shaun also explains why SpaceX could become the biggest wealth creation event in history, how liquidity will reshape the tech ecosystem, and why Elon’s approach to power, infrastructure, and speed gives him an unmatched edge.

This is a deep look inside Elon’s operating system — from one of the most technically fluent investors in Silicon Valley.

Shaun Maguire: https://x.com/shaunmmaguire

Molly O’Shea: https://x.com/MollySOShea 

Sourcery: ⁠https://x.com/sourceryy 

𝐄𝐏𝐈𝐒𝐎𝐃𝐄 𝐋𝐈𝐍𝐊𝐒

YT: https://youtu.be/lPXYqPXo_R0

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𝐓𝐈𝐌𝐄𝐒𝐓𝐀𝐌𝐏𝐒

(00:00) Shaun Maguire, Partner at Sequoia Capital

(01:10) SpaceX Upcoming IPO & data centers in space

(05:00) The math behind space-based data centers

(07:05) Breaking down Starlink from first principles

(12:10) Economics of Starlink vs legacy telecom

(14:41) Starlink + self-driving cars and the future of mobility

(16:29) Starship, direct-to-cell, and the next decade roadmap

(19:38) SpaceX investment size and returns so far 

(20:25) Why is Elon still underrated?

(21:33) How SpaceX went from contrarian to consensus

(25:39) Why does Elon keep a tight investor circle?

(27:06) Why does the market still underestimate xAI?

(29:47) AI capex, liquidity cycles, and why spending is rational

(32:11) Staying private vs going public: what makes more sense

(35:47) Mission-driven cultures vs post-liquidity slowdown

(37:53) Preparing founders psychologically for liquidity events

(40:33) Why this may be the healthiest wealth creation cycle