SpaceX reportedly eyes $28.5Tn 'Enterprise AI' market with in-house GPU plans - The Tech Portal

Elon Musk is positioning SpaceX beyond rockets, informing investors that it is targeting a massive $28.5 trillion opportunity in artificial intelligence, particularly in the enterprise AI segment, reports Reuters, citing a recent IPO-related filing. The company estimates this figure as its total addressable market, meaning the maximum revenue it could generate if it captured the entire segment. In the same filing, the firm also warned investors about heavy spending plans to build AI capabilities, including developing its own GPU chips and computing infrastructure.

SpaceX's estimate assigns around $26 trillion of the total opportunity directly to AI, with over $22 trillion linked specifically to enterprise applications. These include AI-driven corporate software, industrial automation, logistics optimization, financial modeling, defense systems, and healthcare technologies. The company argues that AI will become embedded in nearly every business process, effectively transforming the global economy into a software and data-driven system.

This clearly highlights a fundamental shift in how SpaceX sees its future. Traditionally known for launch services and satellite deployment, the company is now framing itself as a full-stack AI infrastructure provider. Its satellite internet division, Starlink, already generates more than $10 billion annually and provides global connectivity, which SpaceX views as a key foundation for delivering AI services worldwide.

A major component of this transformation is the integration of xAI, Musk's AI venture, into SpaceX's broader ecosystem. The merger was formally completed on February 2026, in an all-stock transaction that valued SpaceX at around $1 trillion and xAI at about $250 billion, creating a combined entity worth about $1.25 trillion. Following the acquisition, xAI was turned into a wholly owned subsidiary and underwent significant restructuring, including leadership changes and team consolidation.

The strategic goal behind the deal is to tightly integrate xAI's large-scale model development - like its Grok systems - with SpaceX's physical assets, including rockets, satellite networks, and energy systems. By bringing all these capabilities together, the company wants to build a single, fully connected system that can provide AI services worldwide. It is also exploring future ideas like data centers in space, which could use solar power and natural cooling to solve energy and heat problems faced on Earth.

And to support its AI ambitions, SpaceX is also investing heavily in hardware and semiconductor infrastructure. The company has outlined plans to design its own GPU-class processors and reduce reliance on external suppliers. The effort is part of a broader initiative known as 'Terafab', a large-scale semiconductor manufacturing project announced in March.

Terafab is being developed as a joint venture involving SpaceX, xAI, Tesla, and Intel. The project is designed as a vertically integrated 'mega-fab' that brings together chip design, fabrication, memory production, advanced packaging, and testing under a single system. Intel's involvement is particularly significant, as it provides expertise in advanced manufacturing processes, including its next-generation 14A fabrication technology, which is expected to be used in the project. At full scale, Terafab is expected to produce over 1 TW of AI compute capacity annually. All this is happening at a time when SpaceX has reportedly filed for a confidential IPO, targeting a valuation of around $1.75 trillion and aiming to raise as much as $75 billion.

The Tech Portal is published by Blue Box Media Private Limited. Our investors have no influence over our reporting. Read our full Ownership and Funding Disclosure →