Baron Fifth Avenue Growth Fund on Space Exploration Technologies Corp.

The Fund views SpaceX as a unique company positioned at the intersection of AI and the emerging space economy, with competitive advantages it believes are exceptionally difficult to replicate. Reusable rockets have created structural cost, scale, reliability, and innovation advantages that should widen further with Starship, while Starlink provides exposure to an approximately $1.5 trillion connectivity market. SpaceX is also expanding into terrestrial AI data-center hosting, where initial agreements with Anthropic and Google represent $26 billion of annualized revenue, and the Fund sees a much larger opportunity if capacity scales. Longer term, orbital data centers could potentially provide lower-cost and more scalable AI inference by exploiting cheap reusable launch, free solar power, and effectively unlimited space. The Fund also sees significant optionality in AI applications, semiconductor manufacturing, transportation, in-space manufacturing, mining, lunar infrastructure, and Mars without assigning value to those opportunities.