SpaceX Confidentially Files for IPO, Fueling Space and AI Ambitions

SpaceX has confidentially filed for a U.S. initial public offering, sources familiar with the matter stated, setting the stage for what could become the largest stock market listing on record. The company, led by Elon Musk, offers investors a chance to participate in humanity's return to the moon and an attempt to colonise Mars.

Credit: SpaceX

SpaceX puts more rockets into space than any other organisation. It also aspires to place artificial intelligence data centres in orbit. The company runs a lucrative satellite communications system, Starlink, which provides internet access across much of Earth and is increasingly utilised in conflict zones.

A public listing at a potential valuation of more than USD 1.75 trillion follows a merger between SpaceX and Musk's artificial intelligence startup xAI. This deal valued the rocket company at USD 1 trillion and the developer of the Grok chatbot at USD 250 billion.

SpaceX is hosting an analyst day on April 21, encouraging research analysts to attend in person. The organisation is also offering analysts an optional visit to xAI's "Macrohard" data centre site in Memphis, Tennessee, on April 23. It plans to hold a virtual session on May 4 to discuss financial models with banks' research analysts.

Valuing this conglomerate presents a complex task. However, Musk's leadership simplifies it for some investors. Angelo Bochanis, data and index associate at Renaissance Capital, a provider of IPO-focused research and ETFs, commented, "Investors could use a sum-of-the-parts analysis, but, like with Tesla, SpaceX's valuation could very much fluctuate wildly based off how much the public believes in Musk's vision." Bochanis added, "So far, investors seem to be clamouring for any sort of exposure to SpaceX."

Much of the USD 1.75 trillion value discussed is based on the Starlink satellite business. Shay Boloor, chief market strategist at Futurum Equities, stated, "Starlink is the only reason this valuation is defensible." Boloor noted that Starlink, with nine million subscribers, defence contracts, and its own data network, "is going to be the recurring revenue engine."

The Starbase, Texas-headquartered firm could seek to raise more than USD 50 billion in the IPO. This figure would easily surpass the 2019 flotation of Saudi Aramco, which remains the largest IPO on record.

A blockbuster SpaceX debut could revive the IPO market after years of subdued activity. Market participants expect strong demand from both retail and institutional investors. Some investors are drawn by Musk's brand, while others seek exposure to SpaceX's fast-growing space and Starlink satellite businesses.

SpaceX is currently the world's most valuable privately held company, based on the valuation implied by its merger deal with xAI. The rocket startup was last valued at about USD 800 billion in a secondary share sale. A confidential filing allows a company to submit IPO documents to regulators privately, enabling it to address feedback and refine disclosures away from public scrutiny.

A listing would deepen analyst and investor scrutiny of "Muskonomy," the billionaire's sprawling business empire and intertwined fortunes. This move would bring renewed focus to how his companies are financed, governed, and valued across markets.

Minmo Gahng, assistant professor of finance at Cornell University, explained, "A likely dual-class share structure would let Musk tap public capital while retaining firm control, even after the substantial dilution that comes with a public offering." Musk also runs electric vehicle maker Tesla, brain-chip maker Neuralink, and tunnel-digging firm The Boring Company. He integrated social media platform X into xAI via a share swap last year, giving the AI startup access to the platform's data and distribution network.

Questions about Musk's ability to oversee multiple companies with market values exceeding USD 1 trillion could temper investor enthusiasm, analysts say. Kat Liu, vice president at IPOX, said, "It is understandable that investors would be concerned with Musk overseeing multiple significant enterprises, especially given his polarizing public profile at times. However, SpaceX appears somewhat differentiated." Liu emphasised, "The business is operationally mature, technologically ahead in several key areas, and profitable, which provides a solid fundamental underpinning."

The move comes as NASA is set to launch four astronauts as soon as Wednesday evening on a 10-day flight around the moon, marking the most ambitious U.S. space mission in decades. SpaceX generated about USD 8 billion in profit on USD 15 billion to USD 16 billion of revenue last year, Reuters reported in January, citing people familiar with the matter.

A growing number of billionaires and private firms have financed a fresh space race in the U.S. They are investing heavily in rockets, satellite networks, and lunar ambitions, including SpaceX and Jeff Bezos' Blue Origin. Space stocks saw a jump in value, with Intuitive Machines rising 11%, while Planet Labs, AST SpaceMobile, and Rocket Lab added between 6% and 10%.

As NASA relies more on commercial partners and defence budgets climb, space is emerging as a strategic battleground. This area is shaped by technological advancement, national security priorities, and the promise of new economic gains. SpaceX has also sought permission to launch up to one million solar-powered satellites, engineered as orbital data centres, a scale far beyond anything currently deployed or proposed. NASA engineers and technologists have speculated for nearly two decades about moving energy-hungry computing off the planet.

SpaceX's merger with xAI has drawn investor attention to how Musk could use a tightly integrated network of rockets, satellites, and AI systems. This integration could overcome technical and capital hurdles, extending artificial intelligence infrastructure beyond Earth. Artificial intelligence has become a favoured theme on Wall Street, with anything tied to AI helping to fuel a powerful rally in technology stocks and lifting valuations across the sector.

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• SpaceX has confidentially filed for a U.S. initial public offering, potentially becoming the largest stock market listing on record.

• The company could achieve a valuation exceeding USD 1.75 trillion following its merger with Elon Musk's xAI.

• SpaceX is a leading rocket company and operates the Starlink satellite internet system, a key driver of its valuation.

Source: REUTERS