SpaceX: Biggest IPO in History Is Almost Here

SpaceX is days away from launching what could become the largest initial public offering in financial history. The company is preparing to hit the road this week, meeting with major institutional investors in a high-stakes pitch designed to justify a valuation of approximately $1.75 trillion and raise as much as $75 billion from public markets. If successful, it would shatter every IPO record ever set.

But before the champagne is uncorked, SpaceX has a problem it needs to fix — and it’s called xAI.



The Bleeding Unit No One Can Ignore

SpaceX merged with Elon Musk’s artificial intelligence company xAI earlier this year, folding it — along with social media platform X — into one giant corporate structure. The combined AI division, now rebranded as “SpaceXAI,” is burning through cash at an alarming rate. The unit lost over $6 billion in 2025 alone, and the losses deepened further in early 2026.

These are numbers that make investors nervous, and SpaceX knows it.



Crafting the Story Before the Show

Behind the scenes, SpaceX has been working intensively with its banking partners to reshape how the AI story is presented to investors. The goal is not to hide the losses — those are publicly disclosed — but to frame them as the unavoidable cost of building something transformational rather than a sign of a broken business.

The argument SpaceX wants investors to accept is simple: today’s losses are tomorrow’s dominance. The company believes that owning AI infrastructure, a powerful chatbot platform, and cutting-edge data center technology positions it to compete directly with the biggest names in artificial intelligence.



One Profit Center Carrying Everything

The financial reality, however, is that SpaceX’s satellite internet service, Starlink, is currently the only division generating consistent profit. Starlink has grown into a global broadband giant with millions of subscribers, and its revenues are essentially subsidizing every other part of the business — from rocket development to AI ambitions.

This means the $1.75 trillion valuation is not a reflection of what SpaceX earns today. It is a bet on what SpaceX could become, if everything goes according to plan.



A Skeptical Market Is Watching

Not everyone is convinced. Independent research firms have raised serious doubts about whether the AI division can justify the premium being attached to it. Questions have been raised about the strength of SpaceX’s chatbot technology relative to established competitors, the unproven economics of its planned orbital data centers, and the overall complexity that the xAI merger has introduced into an already ambitious company.

The roadshow begins this week. SpaceX will have a narrow window to win over the investors who will ultimately decide whether this historic offering flies — or falls back to earth.