Per a Bloomberg report, Elon Musk’s SpaceX plans to file for IPO as soon as next month at $1.75 trillion valuation. Bloomberg cites people familiar with the deal, setting a clearer debut for the highly-anticipated stock IPO. In a memo, SpaceX said it’s preparing for a possible IPO in 2026 that would be aimed at funding an “insane flight rate” for its developmental Starship rocket, artificial intelligence data centers in space, and a base on the moon.
The joint IPO between SpaceX and xAI would give fresh momentum to SpaceX’s effort to launch data centers into orbit as Musk battles for supremacy in the rapidly escalating AI race against tech giants like Google, Meta, and OpenAI. The transaction marks the largest tie-up in Musk’s vast business portfolio and brings together two companies that have been soaring in value on the private markets. SpaceX opened a secondary share sale last year at a valuation of $800 billion, while xAI was valued at about $230 billion in a $20 billion round that closed earlier this year.
Per Bloomberg sources, in a confidential filing, companies can receive feedback from the regulator and make changes before the information becomes public. A listing for SpaceX would raise as much as $50 billion, people familiar with the preparations have said. At that size, it would be larger than the current record holder, Saudi Aramco’s $29 billion debut in 2019.
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Additionally, Musk said in a statement last month that he sees the merger as a way to generate AI compute in an effective and cheaper way. “My estimate is that within 2 to 3 years, the lowest cost way to generate AI compute will be in space. This cost-efficiency alone will enable innovative companies to forge ahead in training their AI models and processing data at unprecedented speeds and scales, accelerating breakthroughs in our understanding of physics and invention of technologies to benefit humanity.”
Furthermore, Musk added that with AI continuing to be of huge importance, its development needs to happen on a larger sale: like space. Current advances in AI are dependent on large terrestrial data centers, which require immense amounts of power and cooling. Global electricity demand for AI simply cannot be met with terrestrial solutions, even in the near term, without imposing hardship on communities and the environment. In the long term, space-based AI is obviously the only way to scale.”
SpaceX has yet to confirm the reported March IPO projection.
