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SpaceX S-1 Centers IPO on AI Ambitions, Cautions Orbital Data Centers Are Unproven

The filing recasts SpaceX as an AI‑first business with steep losses, vast capital needs, unproven space compute plans.

The SpaceX building, as the company prepares to file for an initial public offering (IPO), in Hawthorne California, U.S., April 23, 2026. REUTERS/Mike Blake
Elon Musk's supercomputer Project Colossus, which he's termed a "gigafactory of compute", is seen in Memphis, Tennessee, U.S. August 22, 2024.  REUTERS/Karen Pulfer Focht/File Photo
SpaceX's logo and an Elon Musk photo are seen in this illustration created on December 19, 2022. REUTERS/Dado Ruvic/Illustration/File Photo/File Photo
The SpaceX’s logo is seen in one of their buildings as the initial public offering (IPO) is expected to be announced soon in Starbase, Texas, U.S. March 31, 2026.  REUTERS/Gabriel V. Cardenas

Overview

  • SpaceX’s confidential S-1 reviewed by Reuters sizes a $28.5 trillion market with more than 90% tied to AI, targets about a $1.75 trillion valuation, and seeks roughly $75 billion in its planned IPO.
  • The filing shows xAI posted a $6.4 billion operating loss in 2025 as total capex jumped to $20.7 billion with $12.7 billion for AI, while Starlink earned $4.4 billion on $11.4 billion revenue and SpaceX lost $4.9 billion overall.
  • SpaceX lists plans to manufacture its own GPUs and build out Terafab-scale compute, yet says it lacks long-term chip supply contracts and warns its hardware timelines could slip.
  • The company warns that orbital AI compute and in-orbit, lunar, and interplanetary industrialization rely on unproven technology that may never be commercially viable, and says Starship delays would constrain its growth strategy.
  • Reporting also describes an option to acquire coding startup Cursor for $60 billion with a $10 billion fee if it does not close, a potential move to speed AI tools that has not been confirmed in the S-1.