This week, it was reported that SpaceX is weighing a fundraising target of up to $75 billion in its IPO at a valuation of $1.75 trillion. This would make SpaceX’s IPO the largest in history, more than twice as large as the previous record-holder, Saudi Aramco, which raised $29 billion in 2019. It was also reported that the company will file for the IPO as soon as next week and plans to go public in June. Things have been moving quickly for SpaceX, which acquired xAI just last month in a deal valuing xAI at $250 billion and SpaceX at $1 trillion before initiating a rebuild of the AI company “from the foundations up”.
Aside from xAI, as we covered in our updated report last week, SpaceX has always had two distinct parts: the launch business and Starlink. On the launch side, SpaceX controls over 95% of the domestic launch market and holds more than $22 billion in active government contracts. Starlink, on the other hand, has over 10 million subscribers across 160 countries and is experiencing rapid growth, producing ~$15 billion in revenue, between 50%-80% of SpaceX’s total last year, and $8 billion in profit. Despite this, the fact that xAI is burning over $1 billion in cash every quarter may be one reason why the company is targeting such an aggressive IPO timeline and fundraising target.
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