SpaceX Pursues 'Largest Ever' Mega IPO... Profitability of Space Business Still Unclear

Could Define the Direction of AI and Space Industries

"Investor Confidence Is Key"

SpaceX, alongside Blue Origin as one of the two major players in the U.S. private space and aerospace sector, has officially begun its initial public offering (IPO) process with the aim of listing on the Nasdaq market in mid-June. The market anticipates that this IPO will be a "mega IPO" that could shape the future of both artificial intelligence (AI) and the space industry.

On the 20th (local time), SpaceX's next-generation spacecraft 'Starship' was seen standing in the atmosphere. The Starship launch is reported to have been postponed to the 21st. Photo by AP Yonhap News

According to the prospectus posted on the U.S. Securities and Exchange Commission (SEC) website on the 20th (local time), the company estimates its total addressable market (TAM) at $28.5 trillion, a scale approaching the U.S. gross domestic product (GDP). By sector, SpaceX projects $370 billion for space-based solutions in the space business, $1.6 trillion for connectivity businesses including Starlink broadband ($870 billion) and Starlink mobile ($740 billion), and $26.5 trillion for AI-related business.

In addition to its rocket launch and Starlink satellite internet operations, the company is also focusing on building space-based AI data centers. In the prospectus released that day, CEO Elon Musk reiterated his vision for building a colony on Mars, stating, "The future will be better than the past." In fact, the company has set not only a market capitalization target as a performance-based compensation condition for Musk, but also pledged to build a permanent human colony on Mars with at least 1 million residents and establish a space-based data center providing annual computing power of 100 terawatts.

The company did not disclose the specific amount to be raised through the offering. However, foreign media outlets such as The Wall Street Journal (WSJ) have suggested that SpaceX could raise about $80 billion (approximately 110 trillion won). This would greatly exceed the $29 billion raised by Saudi Aramco's IPO in 2019. Through this IPO, the company is expected to achieve a valuation of more than $1.5 trillion. Media reports have also noted that after the February merger of SpaceX and xAI, the combined company's valuation reached $1.25 trillion.

At the same time, the immense investment burden was also revealed. xAI spent $12.7 billion last year solely on developing and constructing data centers, and an additional $3 billion was used to develop the next-generation spacecraft, Starship. Starship is about to undergo its 12th unmanned test flight. This will serve as a crucial test ahead of the IPO, which is expected next month.

Financial results, previously shrouded in secrecy, were also released. The company stated that its 2025 revenue reached $18.7 billion, a 33% increase from the previous year. However, as expenses including research and development (R&D) increased, net loss reached $4.94 billion. In 2024, the company had posted a net profit of $791 million. In the first quarter of this year, revenue was $4.7 billion, up from $4.07 billion last year, but the company recorded a net loss of $4.3 billion.

Some observers have raised concerns that SpaceX's future is excessively dependent on Musk personally, as the symbolic value of the space launch business has not translated into significant revenue. In 2025, consolidated operating revenue was $11.4 billion, with the space launch and AI divisions contributing just $4.1 billion and $3.2 billion, respectively. The majority of the remaining revenue came from the Starlink satellite internet business.

Tim Farrar, CEO of TMF Associates, told U.S. public broadcaster NPR, "The current valuation is entirely based on how much people believe in Musk. It is not based on the business itself as it stands." Gene Munster, CEO of Deepwater Asset Management, told The Washington Post (WP), "The current level of loss is not large by growth company standards. The key is whether investors believe the ultimate vision can be achieved."

After SpaceX goes public, CEO Musk will continue to serve as both CEO and chairman of the board, maintaining a controlling 85.1% of voting rights. This structure makes it virtually impossible for outside shareholders to influence management. The prospectus also includes provisions that prevent anyone other than Musk himself from removing him as CEO. Shareholder rights are also designed to be limited. Legal claims by shareholders can only be pursued through arbitration, with restrictions placed on jurisdictions where lawsuits can be filed.

Based on the disclosed prospectus, SpaceX is expected to begin investor roadshows around June 4. Companies can begin soliciting investors 15 days after the prospectus is made public. Goldman Sachs will serve as the lead underwriter for this IPO, with Morgan Stanley, Bank of America, Citi, and JPMorgan as co-underwriters.

This content was produced with the assistance of AI translation services.