The space economy is becoming more connected to everyday economic activity, from satellite communications and navigation to weather forecasting, defense and data. Falling launch costs, advances in satellite technology and rising demand for AI infrastructure are broadening the conversation around what space could enable.

In this episode of The Bid, host Oscar Pulido speaks with Reid Menge, portfolio manager in BlackRock’s Fundamental Equity Group, about how the space economy is developing and the forces behind its growing relevance. They explore lower launch costs, satellite capabilities, national security priorities, AI infrastructure and the potential evolution of data centers.

The discussion also looks beyond rockets and satellites to the broader infrastructure and capital markets ecosystem supporting space activity. Reid explains why cost and capability remain critical variables, how government spending can intersect with private-sector innovation, and why technical execution remains an important source of uncertainty as the industry develops.

Episode chapters

00:00 Introduction to Space Economy

02:02 Space in Daily Life

02:37 Space Investing Goes Mainstream

04:40 Cost Capability Demand

09:22 AI Meets Orbit

11:18 Space Data Centers Explained

14:39 National Security Imperative

16:20 Where Opportunities Emerge

18:29 Risks and Reality Check

20:32 Next Decade Outlook

22:28 Wrap Up and Disclosures

Key Insights from this episode:

· How falling launch costs could expand the range of economically viable space activities.

· Why smaller, lower-cost satellites are changing communications and Earth observation.

· How AI is increasing the potential value of data collected from space.

· Where national security priorities intersect with commercial space infrastructure.

· Why semiconductors, communications equipment and specialty materials form part of the space ecosystem.

· How execution risk and technological complexity could influence the industry’s development.

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Sources: GPS.gov data 2026; “How geostationary small satellites are providing strategic access to space”, WEF 2025; “Big ideas, small satellites”, NASA Jet Propulsion Laboratory; “State-of-the-Art Small Spacecraft Technology” NASA report May, 2026; Department of War Budget 2027; “Servers account for 60% of the total cost of ownership of a one-gigawatt AI data center”, Epoch AI; “SpaceX IPO: Musk's firm set to launch first 'orbital data center' AI1 satellites in 2027, will put compute on Starlink craft” DCD 2026; Department of the Air Force Posture Statement Fiscal Year 2027;

space economy, AI investing, infrastructure, capital markets, megaforces, satellite technology, national security, data centers

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272: Space, The Final Investing Frontier - How AI and Technology Are Expanding the Economy

The Bid - An Investing Podcast from BlackRock

272: Space, The Final Investing Frontier - How AI and Technology Are Expanding the Economy