SpaceX‘s blockbuster public debut has sparked a familiar debate on Wall Street: Is the valuation already too high? Joe Lonsdale, co-founder of Palantir Technologies Inc. (NASDAQ:PLTR) and managing partner at venture firm 8VC, thinks investors may be asking the wrong question.

Appearing on CNBC’s Squawk Box ahead of the company’s Nasdaq debut, Lonsdale argued that concerns about SpaceX’s valuation overlook the scale of the opportunity he sees ahead.

“I still think we’re very early in what this company is going to be worth,” Lonsdale said. “Whether or not it’s expensive now, it’s going to look really cheap in 5 or 10 years.”

Betting On The AI Buildout

Lonsdale’s thesis goes well beyond rockets and satellite launches. He described SpaceX as “a critical company in the middle of the biggest industrial revolution we’ve ever had” and argued that investors should increasingly view the company through the lens of artificial intelligence infrastructure.

“I think SpaceX is set up to be key AI infrastructure,” he said. According to Lonsdale, trillions of dollars are being directed toward AI-related ...