SpaceX Preps Record $1.75T IPO
SpaceX is preparing a confidential IPO filing for this month, targeting a massive $1.75 trillion valuation. The move, which could raise up to $50 billion, follows the merger with xAI and comes as Starlink's upgraded mobile satellite internet goes live, supporting video calls from almost anywhere.
The potential IPO would be one of the largest in history, with some reports suggesting it could surpass Saudi Aramco's $29 billion debut. Major financial institutions are reportedly being lined up for senior roles, and a dual-class share structure is under consideration to allow insiders, including Elon Musk, to retain enhanced voting control. The move to go public is aimed at funding ambitious projects, including the Starship rocket, space-based data centers for AI, and a lunar base. The merger with xAI, which was valued at $250 billion in the deal, creates a combined entity worth $1.25 trillion. This strategic acquisition integrates xAI's Grok chatbot and the social media platform X (formerly Twitter) into SpaceX's portfolio. The primary driver for the merger is the development of solar-powered orbital data centers, aiming to address the immense energy and construction costs of terrestrial AI infrastructure. Starlink, a key revenue driver, is projected to bring in over $10 billion in subscription revenue in 2025, accounting for about two-thirds of SpaceX's total revenue. The satellite internet service has seen rapid growth, expanding from 2.3 million subscribers in 2023 to a projected 8 million by the end of 2025. Government contracts for services like Starshield, a national security-focused satellite program, are also significant contributors to revenue. Starlink's new "Direct to Cell" service, now rebranded as Starlink Mobile, aims to provide 4G and eventually 5G-level connectivity directly to standard mobile phones. The next generation of V2 satellites is expected to deliver up to 100 times the data density of the current system. This service will function like a "cell tower in space," eliminating the need for ground infrastructure in remote areas and working with existing LTE phones without any modifications.
