Baron Partners Fund on Space Exploration Technologies Corp.

SpaceX is the fund's largest holding and Baron believes reusable launch technology can continue dramatically reducing the cost of accessing space. Lower launch costs support Starlink's expanding broadband network and create opportunities in launch, terrestrial infrastructure, orbital infrastructure and AI compute. The company's IPO raised more than $85 billion, while major compute-hosting agreements with Anthropic and Google added another potentially large recurring revenue stream. The acquisition of Cursor broadens exposure to AI applications, and continued Starship development could create another step-change in launch economics. Despite post-quarter share-price weakness, Baron believes the underlying business remains exceptional and that repeated Starship testing is widening the company's technological moat.