Perspectives on Progress #17
Chloé Darling-Stewart
- SpaceX integrates launch, satellites and AI while ByteDance secures TikTok's future in the US
- Nubank takes its fee-free banking model from Latin America into one of the world’s most competitive markets
- New additions MiniMax and Loyal reshape affordable AI and innovation in pet healthcare
As with any investment, your capital is at risk.
SpaceX
Launching New Industries into Orbit
We first invested in SpaceX for Scottish Mortgage in December 2018, at a valuation of $31bn. It has since become the most valuable private company in the world and one of the most significant contributors to long-term returns.
Few companies matter more to the future of space than SpaceX. Its reusable rockets have transformed the economics of access to orbit, dramatically lowering launch costs. Starship, the largest and most powerful rocket ever built, represents the next step in that evolution. Meanwhile, its satellite business, Starlink, has grown rapidly, with over 9,000 satellites in orbit and more than nine million customers relying on its global communications network.
The next chapter is even more ambitious.
Artificial Intelligence is increasingly constrained by compute availability, energy supply and infrastructure build-out. Musk's instinct is to tackle those bottlenecks directly. His vision is to build space-based data centres within a vertically integrated system. The proposed combination of SpaceX and xAI would unite advanced engineering capability with frontier AI.
Launch, satellites, power and compute under one umbrella could allow SpaceX to control the AI stack from launch pad to neural network – a rare combination of physical infrastructure and intelligence.
While the outcome remains uncertain, the vision and ambition are not. SpaceX is shaping the infrastructure on which the next wave of innovation will run, engineering its way past physical constraints and becoming the gateway to entirely new industries.
MiniMax
Democratising Intelligence
We recently participated in the IPO of MiniMax, a Chinese AI company building large language models with an ambition to democratise intelligence. Its products span virtual companions such as Talkie, creative tools and enterprise agents that automate everyday tasks. While its models may not always top frontier leaderboards, they compete on a different axis: strong capability at a far lower cost.
That edge stems from how the company uses computing power. In a world of scarce and expensive chips, founder Dr Yan has built a cost-conscious culture focused on extracting more value from every chip. Each response requires less compute, allowing systems to produce more output and spend less time idle.
Engagement reflects this efficiency. In China, users spend significantly longer in MiniMax's flagship experiences than many local AI-native peers, suggesting compelling products don't require excessive compute.
The result is aggressive pricing alongside healthy margins. In a capital-intensive, crowded industry, MiniMax is emerging as a frontrunner and could help underpin more affordable and accessible AI.
Loyal
Keeping Tails Wagging for Longer
What if adding healthy years to your dog's life were as simple as an extra treat each day? That’s the ambition behind Loyal.
Founded by dog-lover Celine Halioua, Loyal is developing medicines to extend the healthy lifespan of pets. In November, we participated in its latest fundraise. Rather than targeting a single disease, its approach focuses on ageing itself by improving metabolic health. With an initial focus on dogs, it has cleared key regulatory hurdles in the US; execution and manufacturing at scale are now the priority.
The treatment is simple: a daily treat-like tablet that doesn't suppress appetite. Owners value their dog's enthusiasm and personality – traits appetite-suppressing treatments risk changing.
If successful, Loyal could make adding healthy years to a pet's life a routine part of veterinary care, while offering the portfolio exposure to a genuinely distinctive area of innovation.
NuBank
From São Paulo to Silicon Valley
Nu is the world’s largest digital bank outside China, serving more than 127 million customers across Brazil, Mexico and Colombia. It has reshaped banking in Latin America by removing fees, simplifying products and delivering a seamless mobile experience in markets long underserved by traditional banks. In doing so, it has built one of the region’s strongest consumer brands.
Now it is taking that model to the United States.
Nu has cleared a major regulatory hurdle to establish a fully licensed US bank. This move is less about rapid expansion and more about proving whether a model refined in under-banked economies can compete in one of the world’s most sophisticated financial systems.
"This step allows us to build the next generation of banking in the United States." - Founder CEO, David Vélez
ByteDance
Unlocked
We first invested in ByteDance in 2019, when it was valued at $75bn. Today it remains private, valued at around $480bn – a testament to the scale it has built in just a few years.
ByteDance has secured TikTok's future in the US, ending years of political and regulatory uncertainty. Under the agreement, TikTok will operate as a majority American-owned business, with US user data remaining in the country while its algorithm continues to operate globally.
Behind the headlines is a business of extraordinary scale. ByteDance’s platforms reach almost five billion users worldwide. In China, Douyin is the leading short-video and live-streaming platform and the country's largest ecommerce channel by sales. Powered by AI that learns individual tastes, ByteDance has redefined how people discover content and where their attention goes.
With the US issue resolved, ByteDance can move forward without that uncertainty, positioned as one of the most influential consumer technology platforms in the world.
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About the author - Chloé Darling-Stewart
Chloé Darling-Stewart is an Investment Specialist at Baillie Gifford. She joined the firm in 2013 and became part of the Scottish Mortgage Team in 2025. In her role, Chloé helps translate the Scottish Mortgage portfolio into clear, compelling insights for shareholders. She works closely with the investment managers, regularly engages with portfolio companies, and leads in-depth, insightful conversations with shareholders. Before joining the Scottish Mortgage Team, Chloé worked across Baillie Gifford’s regional equity strategies and played a key role in cultivating client relationships in the Nordic and Iberian regions.
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