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Every ninety minutes, the International Space Station orbits the Earth. It's about the size of a football fields, and it's been hovering above us for nearly thirty years. The station is a central fixture in the space industry. After a technical issue aboard their Boeing spacecraft, NASA astronauts Sunny Williams and Butch Wilmore called it home. For nine months, here we.

Every ninety minutes, the International Space Station orbits the Earth. It's about the size of a football fields, and it's been hovering above us for nearly thirty years. The station is a central fixture in the space industry. After a technical issue aboard their Boeing spacecraft, NASA astronauts Sunny Williams and Butch Wilmore called it home. For nine months, here we.

Float at the International Space Station together, having accomplished a large part of the mission, a very board part.

Float at the International Space Station together, having accomplished a large part of the mission, a very board part.

They landed safely back on Earth on Tuesday. Sonny and Butch maybe some of the last astronauts to spend time on the ISS, because after more than one hundred thousand rotations around our planet, the station's time the stars will soon come to an end. NASA has said that the ISS is scheduled to be decommissioned in twenty thirty and replaced with a news station, and now the race is on to build it. Several companies have been vying for the coveted contract to construct and launch the space station of the future, but a four year old startup called Vast is betting it will beat out the competition. Thanks to the financial support of its space loving billionaire founder and not the one you're probably thinking of. I'm Sarah Holder, and this is the big take from Bloomberg News today on the show the Race to replace the International Space Station, Why a crypto billionaire believes his company is positioned to win it, and what the competition says about the future of the commercial space industry.

They landed safely back on Earth on Tuesday. Sonny and Butch maybe some of the last astronauts to spend time on the ISS, because after more than one hundred thousand rotations around our planet, the station's time the stars will soon come to an end. NASA has said that the ISS is scheduled to be decommissioned in twenty thirty and replaced with a news station, and now the race is on to build it. Several companies have been vying for the coveted contract to construct and launch the space station of the future, but a four year old startup called Vast is betting it will beat out the competition. Thanks to the financial support of its space loving billionaire founder and not the one you're probably thinking of. I'm Sarah Holder, and this is the big take from Bloomberg News today on the show the Race to replace the International Space Station, Why a crypto billionaire believes his company is positioned to win it, and what the competition says about the future of the commercial space industry.

So Vast is well the way they like to describe themselves as an aspiring space station company.

So Vast is well the way they like to describe themselves as an aspiring space station company.

They are looking to.

They are looking to.

Create the world's first commercial space station and launch it in a very short timeframe.

Create the world's first commercial space station and launch it in a very short timeframe.

That's Bloomberg Space reporter Lauren Grush. She and her colleague Kyle Porter recently traveled to Long Beach, California to see vasts rapidly expanding headquarters.

That's Bloomberg Space reporter Lauren Grush. She and her colleague Kyle Porter recently traveled to Long Beach, California to see vasts rapidly expanding headquarters.

It's very two thousand and one, a space odyssey. It's all white as far as you can see, and on the outside, you'd think you're walking into a SpaceX facility. It's just Tessela's as far as they can see.

It's very two thousand and one, a space odyssey. It's all white as far as you can see, and on the outside, you'd think you're walking into a SpaceX facility. It's just Tessela's as far as they can see.

Lauren and Kyle say, VAST HQ is a constellation of gleaming white buildings filled with hundreds of employees, all working to expand VASTS facilities and build its first prototype space station named Haven one.

Lauren and Kyle say, VAST HQ is a constellation of gleaming white buildings filled with hundreds of employees, all working to expand VASTS facilities and build its first prototype space station named Haven one.

It's twenty four hours a day, seven days a week. If you went in there a cynic, you come out there going well. They're definitely spending the money.

It's twenty four hours a day, seven days a week. If you went in there a cynic, you come out there going well. They're definitely spending the money.

All of that money comes from one man, the company's founder, Jed mcaleb. Tell me more about the guy who started VAST.

All of that money comes from one man, the company's founder, Jed mcaleb. Tell me more about the guy who started VAST.

Who is he?

Who is he?

Jef mcannab was the founder of Vast, and he had previously no connection at AOL to the space industry.

Jef mcannab was the founder of Vast, and he had previously no connection at AOL to the space industry.

Mcaleb is a software developer from Arkansas who dropped out of UC Berkeley and went on to found several tech startups. He spoke to Lauren and Kyle on the factory floor at VAST and he told them he decided to turn his attention to space because he thought people should be well living there.

Mcaleb is a software developer from Arkansas who dropped out of UC Berkeley and went on to found several tech startups. He spoke to Lauren and Kyle on the factory floor at VAST and he told them he decided to turn his attention to space because he thought people should be well living there.

I think it would be in a much better situation if there's billions of people living out beyond Earth, right, I think it's better economically. I think we'd be richer as a civilization. And then also I think it's just people need a frontier otherwise things start to feel very zero s And like for human psyche, we need to be able to expand places. We need to be able to explore.

I think it would be in a much better situation if there's billions of people living out beyond Earth, right, I think it's better economically. I think we'd be richer as a civilization. And then also I think it's just people need a frontier otherwise things start to feel very zero s And like for human psyche, we need to be able to expand places. We need to be able to explore.

From building a commercial space station to sending more humans to space. Mcaleb's goals are pretty vast.

From building a commercial space station to sending more humans to space. Mcaleb's goals are pretty vast.

They also have big dreams of creating artificial gravity, which if you've watched any sci fi you might recognize it as those large rotating modules in orbit that create the feeling of gravity but in space.

They also have big dreams of creating artificial gravity, which if you've watched any sci fi you might recognize it as those large rotating modules in orbit that create the feeling of gravity but in space.

And to make it all happen, Lauren says, Michaeleb assembled a team of people who have the experience in the space industry that he doesn't.

And to make it all happen, Lauren says, Michaeleb assembled a team of people who have the experience in the space industry that he doesn't.

So Jed's strategy seems to be hiring people that are smart and know how to build this space station for him, and he's really put a lot of his faith and confidence in this guy named Max hot who had originally had plans to kind of follow in Elon Musk's footsteps by creating a.

So Jed's strategy seems to be hiring people that are smart and know how to build this space station for him, and he's really put a lot of his faith and confidence in this guy named Max hot who had originally had plans to kind of follow in Elon Musk's footsteps by creating a.

Startup launch company called Launcher.

Startup launch company called Launcher.

Vast acquired Launcher in twenty twenty three, and the company's combined forces today Max Hout is Vast CEO. Under him, the business has scaled up fast because it's never been a better time to be pitching a space station.

Vast acquired Launcher in twenty twenty three, and the company's combined forces today Max Hout is Vast CEO. Under him, the business has scaled up fast because it's never been a better time to be pitching a space station.

Well, you've likely seen a lot more commercial companies propose space stations recently because NASA has been very vocal that it is looking for replacements for the International Space Station.

Well, you've likely seen a lot more commercial companies propose space stations recently because NASA has been very vocal that it is looking for replacements for the International Space Station.

Now that doesn't mean.

Now that doesn't mean.

That NASA wants to stop sending astronauts to space stations, but it just doesn't want to be the one that oversees the operations of a space station.

That NASA wants to stop sending astronauts to space stations, but it just doesn't want to be the one that oversees the operations of a space station.

In other words, NASA is over running its own space station and it wants to pay someone else to step in.

In other words, NASA is over running its own space station and it wants to pay someone else to step in.

What NASA did was put out a call to the commercial space industry saying, hey, we will partially fund the development of a commercial space station with the guarantee that we will send our astronauts to it if you can create a space station and in a platform.

What NASA did was put out a call to the commercial space industry saying, hey, we will partially fund the development of a commercial space station with the guarantee that we will send our astronauts to it if you can create a space station and in a platform.

That we could use on a regular basis.

That we could use on a regular basis.

And so various companies have stepped up to that call with plans to send their stations into.

And so various companies have stepped up to that call with plans to send their stations into.

Orbit throughout this decade.

Orbit throughout this decade.

A lot of us are wondering if they will actually make those deadlines. But there is this race going on if you will to create a viable replacement for the International Space Station and win some coveted contracts by NASA to do so.

A lot of us are wondering if they will actually make those deadlines. But there is this race going on if you will to create a viable replacement for the International Space Station and win some coveted contracts by NASA to do so.

How close is that race right now.

How close is that race right now.

Well, it's relatively close.

Well, it's relatively close.

One thing, having reported on space for many years now, is that you know a launch date is always extremely tentative. I really don't believe something's going to launch until we're maybe like a few days out, to be honest with you, But there are various timeframes that these companies have suggested, you know, twenty twenty six, twenty twenty seven.

One thing, having reported on space for many years now, is that you know a launch date is always extremely tentative. I really don't believe something's going to launch until we're maybe like a few days out, to be honest with you, But there are various timeframes that these companies have suggested, you know, twenty twenty six, twenty twenty seven.

Those would be companies like Jeff Bezos's Blue Origin. There's also Axiom Space and Voyager Space Holdings, which are funded by venture capital.

Those would be companies like Jeff Bezos's Blue Origin. There's also Axiom Space and Voyager Space Holdings, which are funded by venture capital.

That's came on with a bit of a splash because they were essentially a nobody until all of a sudden they burst onto the scene and said, we're actually going to launch our space station as our twenty twenty five and we have actually a launch contract with SpaceX to do so, and we will also launch astronauts on a SpaceX Dragon capsule to go dock with the.

That's came on with a bit of a splash because they were essentially a nobody until all of a sudden they burst onto the scene and said, we're actually going to launch our space station as our twenty twenty five and we have actually a launch contract with SpaceX to do so, and we will also launch astronauts on a SpaceX Dragon capsule to go dock with the.

Space station which is up there.

Space station which is up there.

VAST has since changed that timeframe to twenty twenty six, but it's still an incredibly short timeline, especially in.

VAST has since changed that timeframe to twenty twenty six, but it's still an incredibly short timeline, especially in.

The space industry, which often takes years of development.

The space industry, which often takes years of development.

In twenty twenty six, NASA is expected to hand out contracts to just two companies to build the next space station, and the reason VAST is moving so quickly is because they want to be the only one with a viable prototype by then.

In twenty twenty six, NASA is expected to hand out contracts to just two companies to build the next space station, and the reason VAST is moving so quickly is because they want to be the only one with a viable prototype by then.

Vasts argument is they'll have to give us one of those two spots because we'll be the only company that's actually got something in orbit. It's very ambitious. I mean, you've you've still got a lot of science projects to work out before you can turn it into hard science and then turn it into the technology to get you up there. I will say, having been very skeptical prior visiting the site, I came away thinking, well, there's real endeavor here and they're very serious about it. So they may revolutionize how you build a space project going forward. Well they may not.

Vasts argument is they'll have to give us one of those two spots because we'll be the only company that's actually got something in orbit. It's very ambitious. I mean, you've you've still got a lot of science projects to work out before you can turn it into hard science and then turn it into the technology to get you up there. I will say, having been very skeptical prior visiting the site, I came away thinking, well, there's real endeavor here and they're very serious about it. So they may revolutionize how you build a space project going forward. Well they may not.

Vast success could ultimately hinge on the decisions made by its leadership team and its founder. So what does mcaleb's track record tell us about the company's prospects. That's next is not the first Moonshot venture. Jed mccaleb has gotten behind. Bloomberg's Kyle Porter says the founder launched his first startup in his early twenties.

Vast success could ultimately hinge on the decisions made by its leadership team and its founder. So what does mcaleb's track record tell us about the company's prospects. That's next is not the first Moonshot venture. Jed mccaleb has gotten behind. Bloomberg's Kyle Porter says the founder launched his first startup in his early twenties.

It was a venture called e Donkey. For all the elder millennials and gen X's, I probably don't need to tell them, but it was a means by which you could share music and video online for free. They did have a premium version of the product, but they made them money off advertising. That business later folded after a series of lawsuits.

It was a venture called e Donkey. For all the elder millennials and gen X's, I probably don't need to tell them, but it was a means by which you could share music and video online for free. They did have a premium version of the product, but they made them money off advertising. That business later folded after a series of lawsuits.

E Donkeys shut down after agreeing to pay the Recording Industry Association of America thirty million dollars to avoid copyright infringement lawsuits. Mcaleb's next big swing came in twenty ten in the form of a crypto trading platform called mount gox.

E Donkeys shut down after agreeing to pay the Recording Industry Association of America thirty million dollars to avoid copyright infringement lawsuits. Mcaleb's next big swing came in twenty ten in the form of a crypto trading platform called mount gox.

It quickly became the biggest tradocrypto in the world as a platform, she had after about a year, sold a majority steak, and then a few years later it looked quite spectacularly and was the biggest crypto failure until FTX a couple of years ago.

It quickly became the biggest tradocrypto in the world as a platform, she had after about a year, sold a majority steak, and then a few years later it looked quite spectacularly and was the biggest crypto failure until FTX a couple of years ago.

And how did he get over those two sort of catastrophic business vendors.

And how did he get over those two sort of catastrophic business vendors.

Well, in the case of mount Gox, he'd already sold a majority steak anyway, and he claims he himself lost money in the collapse, and he'd already pivoted. By that point. He'd started another crypto outfit and trading platform called Ripple, which had its own token XRP, which for a time was the second most popular form of crypto in the world, and he left that company, agreed to a share trading plan, and certainly from the reporting that we've done, he made billions of dollars on that trading plan over the course of neary a decade.

Well, in the case of mount Gox, he'd already sold a majority steak anyway, and he claims he himself lost money in the collapse, and he'd already pivoted. By that point. He'd started another crypto outfit and trading platform called Ripple, which had its own token XRP, which for a time was the second most popular form of crypto in the world, and he left that company, agreed to a share trading plan, and certainly from the reporting that we've done, he made billions of dollars on that trading plan over the course of neary a decade.

And much of that money is now funding vast Bloomberg's Lauren Grush says that it's not unusual to see a billionaire back a space startup. It's becoming somewhat of a trend. Still, the fact that micleb is willing to put so much of his own capital into this venture is a big advantage.

And much of that money is now funding vast Bloomberg's Lauren Grush says that it's not unusual to see a billionaire back a space startup. It's becoming somewhat of a trend. Still, the fact that micleb is willing to put so much of his own capital into this venture is a big advantage.

Space development is difficult.

Space development is difficult.

Obviously, it takes many years, and you're constantly iterating and changing and designing. Things fail and so that requires more money. And so the fact that they have this steady stream of income for the first part of this development process really is a game changer for a company like this.

Obviously, it takes many years, and you're constantly iterating and changing and designing. Things fail and so that requires more money. And so the fact that they have this steady stream of income for the first part of this development process really is a game changer for a company like this.

If you think about venture financing in general, what usually happens is unless there's a few bootstraps, but think of the typical route people have idea, People get seed funding. The funders expect at least you to meet a certain prescribed benchmark if you do that tick, and if you're doing that with software, it's far easier to do and to iterate than it is when you have hardware. A lot of space companies fail because they get to a stage in the process it didn't work, and then one or two funders suddenly lose confidence. The whole thing can unravel, and at least you have assets that people are like, well, I'll get seventy percent of my money back, say if we sell this rather than continuing. Vast don't have that. They can do it all at once, and then they can do it quickly.

If you think about venture financing in general, what usually happens is unless there's a few bootstraps, but think of the typical route people have idea, People get seed funding. The funders expect at least you to meet a certain prescribed benchmark if you do that tick, and if you're doing that with software, it's far easier to do and to iterate than it is when you have hardware. A lot of space companies fail because they get to a stage in the process it didn't work, and then one or two funders suddenly lose confidence. The whole thing can unravel, and at least you have assets that people are like, well, I'll get seventy percent of my money back, say if we sell this rather than continuing. Vast don't have that. They can do it all at once, and then they can do it quickly.

Another factor working in vast favor is a close working relationship with SpaceX, pretty much the go to launch partner for NASA and for companies launching satellites.

Another factor working in vast favor is a close working relationship with SpaceX, pretty much the go to launch partner for NASA and for companies launching satellites.

Vast certainly has signed up a lot of partnerships with SpaceX that are pretty key to getting their products into orbit. For instance, even won their first space station is designed to launch within the fairing of a Falcon nine rocket, and then once that is launched, a second mission mounted by SpaceX will send a crew of four to visit the space station to see if it's viable and if it's working. They also are going to have Starlink on their space station to provide Wi Fi, and then SpaceX is also contributing a docking adapter to the Haven one space station so that its crew Dragon can dock seamlessly with the vehicle.

Vast certainly has signed up a lot of partnerships with SpaceX that are pretty key to getting their products into orbit. For instance, even won their first space station is designed to launch within the fairing of a Falcon nine rocket, and then once that is launched, a second mission mounted by SpaceX will send a crew of four to visit the space station to see if it's viable and if it's working. They also are going to have Starlink on their space station to provide Wi Fi, and then SpaceX is also contributing a docking adapter to the Haven one space station so that its crew Dragon can dock seamlessly with the vehicle.

So it's a very close partnership.

So it's a very close partnership.

Something we also noticed is that a lot of the people at VAST have SpaceX on their resume, so they're intertwined in various ways.

Something we also noticed is that a lot of the people at VAST have SpaceX on their resume, so they're intertwined in various ways.

But when it comes to SpaceX's founder, mckaleb told Kyle and Lauren that he's only met Elon Musk a few times, and he said he doubts if Musk would even remember his name. Still, there are ways that Musk's growing influence in Washington could work out in Vast's favor.

But when it comes to SpaceX's founder, mckaleb told Kyle and Lauren that he's only met Elon Musk a few times, and he said he doubts if Musk would even remember his name. Still, there are ways that Musk's growing influence in Washington could work out in Vast's favor.

Elon is actively calling for changes to space policy at the moment. Just a few weeks ago, he said that we should actually de orbit the space station in two years rather than the plan at.

Elon is actively calling for changes to space policy at the moment. Just a few weeks ago, he said that we should actually de orbit the space station in two years rather than the plan at.

By the end of twenty thirty.

By the end of twenty thirty.

Obviously, it remains to be seen if you know President Trump will actually take that advice, But you know, given Elon's close relationship to the President, it's definitely something you shouldn't sneeze at at the moment. You know, his proclamations do have a tendency of coming true.

Obviously, it remains to be seen if you know President Trump will actually take that advice, But you know, given Elon's close relationship to the President, it's definitely something you shouldn't sneeze at at the moment. You know, his proclamations do have a tendency of coming true.

And could Trump scrap the space station plan altogether. Sure he could, but Kyle says, Musk might have a reason to defend it. After all, SpaceX has a contract to take vast station into orbit.

And could Trump scrap the space station plan altogether. Sure he could, but Kyle says, Musk might have a reason to defend it. After all, SpaceX has a contract to take vast station into orbit.

If you were being deeply cynical, you wouldn't bet that a billionaire would try and cut a project that was going to benefit his own company's bottom line.

If you were being deeply cynical, you wouldn't bet that a billionaire would try and cut a project that was going to benefit his own company's bottom line.

What does the story say about the direction of the space industry overall?

What does the story say about the direction of the space industry overall?

Right now?

Right now?

I would say that over the last couple of decades there's really been a big push to seed control of space and access to space from the government, from NASA to.

I would say that over the last couple of decades there's really been a big push to seed control of space and access to space from the government, from NASA to.

The commercial space industry.

The commercial space industry.

That is kind of like this overarching trend that both NASA and the commercial space industry are trying to achieve. As NASA kind of takes a step back and plays more of a customer.

That is kind of like this overarching trend that both NASA and the commercial space industry are trying to achieve. As NASA kind of takes a step back and plays more of a customer.

Role while the commercial space industry takes the reins on a lot of this technology.

Role while the commercial space industry takes the reins on a lot of this technology.

You're very much like the Wild West stage of capital going in. There's not too many industries on this planet where you can say, we think this is going to be three hundred percent growth in the next five years and then possibly the same again, and it's only need to it cheaper and more attractive for us. So there's been this huge deluge of capital that's gone into the industry and people are benefiting from that.

You're very much like the Wild West stage of capital going in. There's not too many industries on this planet where you can say, we think this is going to be three hundred percent growth in the next five years and then possibly the same again, and it's only need to it cheaper and more attractive for us. So there's been this huge deluge of capital that's gone into the industry and people are benefiting from that.

What is the next hurdle for Vast then? What are you watching out for as you follow the story and watch its progress.

What is the next hurdle for Vast then? What are you watching out for as you follow the story and watch its progress.

They have to launch.

They have to launch.

I think at this point, you know, they've talked a big game, they have all their chess pieces in place, but now they actually have to make that move. And you know, that is the ultimate test for any space company. You know, at some point you can say you have the launch contracts, you can say you have all the pieces in place, but your product actually has to work in orbit. And so we will definitely be watching the first launch of their space station very eagerly when it happens.

I think at this point, you know, they've talked a big game, they have all their chess pieces in place, but now they actually have to make that move. And you know, that is the ultimate test for any space company. You know, at some point you can say you have the launch contracts, you can say you have all the pieces in place, but your product actually has to work in orbit. And so we will definitely be watching the first launch of their space station very eagerly when it happens.

This is the Big Take from Bloomberg News. I'm Sarah Holder. This episode was produced by David Fox. It was edited by Aaron Edwards and Anne Riley Moffatt. It was fact checked by Adrian Atapia and mixed and sound designed by Alex Sugia. Special things to Rachel Kessler and Caitlin gross Young. Our senior producer is Naomi Shaven. Our senior editor is Elizabeth Ponso. Our executive producer is Nicole Beamsterbord. Sage Bauman is Bloomberg's head of podcasts. If you liked this episode, makes to subscribe and review The Big Take Wherever you listen to podcasts.

This is the Big Take from Bloomberg News. I'm Sarah Holder. This episode was produced by David Fox. It was edited by Aaron Edwards and Anne Riley Moffatt. It was fact checked by Adrian Atapia and mixed and sound designed by Alex Sugia. Special things to Rachel Kessler and Caitlin gross Young. Our senior producer is Naomi Shaven. Our senior editor is Elizabeth Ponso. Our executive producer is Nicole Beamsterbord. Sage Bauman is Bloomberg's head of podcasts. If you liked this episode, makes to subscribe and review The Big Take Wherever you listen to podcasts.

It helps people.

It helps people.

Find the show. Thanks for listening. We'll be back tomorrow

Find the show. Thanks for listening. We'll be back tomorrow