Dimon Cools AI Investment Hype but Backs SpaceX's Space Data Center Vision

According to Yahoo Finance, Jamie Dimon, CEO of JPMorgan Chase, while cautious about whether the current AI investment frenzy will deliver the returns markets expect, is supportive of one bold infrastructure idea within AI: SpaceX's plan to deploy data centers in space.

In a recent interview with the Master Investor Podcast, Dimon said, "When I look at AI itself, the amount of money being invested right now is enormous. Overall, will it eventually pay off? Probably, just like the internet did. But will it pay off in the way you expect and at the time you expect? The answer is definitely no."

Asked whether the market has already priced in the best-case scenario for the AI boom, Dimon responded, "Not a perfect scenario, but probably a pretty good outcome has already been priced in."

He added that companies may eventually rein in spending on generative AI and seek lower-cost applications, which "will create some problems." The recent launch of China's low-cost AI model Kimi K3 has sparked widespread discussion across the U.S. tech industry.

Dimon is not the only Wall Street leader expressing caution about the AI investment surge. David Solomon, CEO of Goldman Sachs, said last week during an earnings call that the AI boom "won’t go smoothly — there will be bumps and resets along the way."

In the same podcast interview, Dimon described SpaceX (SPCX-US), one of the central players in the AI spending wave, as an "extraordinary company."

Beyond praising SpaceX’s satellite internet business, he defended one of its most forward-looking AI initiatives — the space-based data center.

"I’ve seen some of the data on space data centers, and they actually could work… If it works, it means you can have very cheap energy, low-cost cooling, and a very stable operating environment," Dimon said.

JPMorgan Chase recently reported the highest quarterly profit in U.S. banking history, with significant contributions from AI-related transactions and equity trading. The bank earned hundreds of millions in fees by advising on SpaceX’s large-scale IPO and several other major AI-related deals.

During SpaceX’s pre-IPO investor briefing period, Dimon visited SpaceX CEO Elon Musk. JPMorgan also hosted a launch celebration for SpaceX on June 12 at its Manhattan headquarters in New York, inviting over 100 SpaceX employees and senior executives.

SpaceX’s stock rose during its first three trading days post-IPO but has since declined, hitting a new low on Monday and slightly rebounding on Tuesday. The current share price remains over 5% below its IPO listing price.

When asked how closely he followed SpaceX’s IPO pricing, Dimon replied, "Very closely." In a break from Wall Street norms, SpaceX did not provide a price range ahead of time but directly set the offering price at $135 per share.