News & Updates
The latest news and updates from companies in the WLTH portfolio.
SpaceX's lofty IPO has serious earthbound problems, from emissions to water | Company Business News
Summary Data centers use water primarily for cooling their servers, which process enormous amounts of information. SpaceX envisions a future where AI data centers float effortlessly through space, powered by carbon-free solar panels. For now, the company's data center ambitions are earthbound, and operating them is very resource-intensive. It's causing problems that have exposed the company to legal claims and could hinder its growth. xAI, Elon Musk's artificial intelligence operation that was absorbed into SpaceX, built a data center in Memphis called Colossus that it says contains the world's largest supercomputer. The company is building two other data centers in the Memphis area, with the whole operation costing tens of billions of dollars. To get the data centers up and running fast, Musk trucked natural gas turbines to the site, creating his own makeshift power system that didn't go through the traditional regulatory process for power plants. But communities nearby complained that the plants were spewing pollutants. The NAACP sued in April, saying the natural gas turbines exposed black neighborhoods to harmful chemicals and violated the Clean Air Act. It's trying to get the turbines shut down. The suit is ongoing, and SpaceX says it "intends to defend itself vigorously in these actions."
Google to buy computing from SpaceX at $920 million per month
SpaceX has secured a significant cloud-services deal with Google, agreeing to a monthly payment of $920 million for computing power through mid-2029. This agreement, covering approximately 110,000 NVIDIA GPUs and other components, aims to meet surging customer demand for Google's AI products. Google has agreed to pay Elon Musk's SpaceX $920 million a month for computing power as part of a cloud-services deal. According to a Securities Exchange Commission (SEC) filing by SpaceX, the deal runs through mid-2029. As per the agreement, Google will pay SpaceX the monthly fee from October through June 2029, with capacity ramping up through September at a reduced cost. In case SpaceX fails to deliver the access to the 'guaranteed' Nvidia chips as part of the deal by September 30, Google has the right to terminate the contract, with a one-month grace period. SpaceX has announced the deal just days before the company's stock is expected to start trading on the Nasdaq exchange. As per the SEC filing, the Google-SpaceX compute deal covers "approximately 110,000 NVIDIA GPUs, CPUs, memory, and other related components." From the looks, the deal appears similar in length and scope to the one SpaceX announced with Anthropic in late May. As part of that Anthropic agreed to pay SpaceX $1.25 billion per month through the year 2029 to rent all the available compute from its Colossus 1 data center near Memphis, Tennessee that Elon Musk's company xAI originally built for its own artificial intelligence efforts. SpaceX has not so far revealed which specific data center Google would be using. With these deals, Anthropic and Google will be paying a combined $2.17 billion per month for compute capacity to SpaceX. What SpaceX SEC filing says on Google deal "On June 5, 2026, we entered into a Cloud Service Agreement with Google with respect to access to compute capacity. The customer has agreed to pay us $920 million per month from October 2026 through June 2029, with capacity ramping up through September at a reduced fee. The compute capacity provided includes approximately 110,000 NVIDIA GPUs, CPUs, memory, and other related components. After December 31, 2026, the agreement may be terminated by either party upon 90 days' notice. The customer will retain ownership of, and intellectual property rights in, its content, Al models, and related data," reads SpaceX's SEC filing. Google on compute deal with Elon Musk's SpaceX In a statement, a Google representative described the deal as a result of unexpected demand for its recently launched AI products. "Google Cloud and SpaceX are long-time partners," Google said in a statement. It added, "This is a short-term, timely agreement to ensure we have bridge capacity to meet surging customer demand for our agent platform, Gemini Enterprise, which has been even higher than we expected." Incidentally, Google is a longtime investor in SpaceX. Its stake in Elon Musk's company is expected to be worth more than $100 billion after the IPO. The companies are also reportedly in talks to try to build orbital data centers -- a major component of SpaceX's future plans. Google CEO Sundar Pichai too has spoken about the company's interest in Space data centers.
Rocket company turned AI landlord: SpaceX lands US$30b Google computing deal
(New users only) It's tax relief season! Get up to RM300 when you save with Versa! Plus, enjoy an additional FREE RM10 when you sign up using code VERSAMM10 with a min. cash-in of RM100 today. T&Cs apply. WASHINGTON, June 6 -- SpaceX on Friday signed a blockbuster cloud computing agreement under which Google will pay the Elon Musk-founded rocket company US$920 million (RM3.704 billion) per month for access to a massive cluster of AI chips, according to a disclosure in its initial public offering filing. The deal, which will bolster SpaceX's finances ahead of its IPO on June 12, covers a computing infrastructure of approximately 110,000 Nvidia GPUs -- the crucial hardware needed to power Google's Gemini AI models. The filing says Google will begin paying the full monthly rate in October 2026, with a reduced fee applying during a ramp-up period until then. The agreement runs through June 2029, implying total payments of roughly US$30 billion (RM120.81 billion) over the life of the contract. The deal resembles one struck with AI giant Anthropic, in which SpaceX leased compute capacity at its Colossus data centers in Memphis, Tennessee for US$1.25 billion (RM5.034 bullion) a month. The facilities were originally built to power Musk's rival AI venture, xAI. SpaceX's IPO filing revealed that xAI last year posted an operating loss of US$6.4 billion (RM25.77 billion) on total revenue of US$3.2 billion (RM12.89 billion). "This is a short-term, timely agreement to ensure we have bridge capacity to meet surging customer demand for our agent platform, Gemini Enterprise, which has been even higher than we expected," a Google Cloud spokesperson said in an email to AFP. The filing adds that after December 31, "the agreement may be terminated by either party upon 90 days' notice." The deals with Google and Anthropic come just days ahead of SpaceX's IPO, which will be the biggest in history, valuing the company at US$1.8 trillion (RM7.25 trillion). That valuation is largely based on faith that Musk can deliver on his ambitions to vastly expand his Starlink satellite business, put data centers into space using SpaceX rockets, as well as begin colonizing Mars. -- AFP
SpaceX signs $920 million monthly cloud compute deal with Google ahead of IPO - Cryptopolitan
Both deals bolster SpaceX's financials ahead of its planned IPO targeting a $75 billion raise. SpaceX is primed to receive a whopping $920 million per month from Google, so the latter can make use of its AI cloud computing facilities, according to an SEC filing today. This gives Elon Musk's rocket, AI, and satellites company another major cloud customer weeks before its planned IPO. The agreement runs from October 2026 through June 2029 and covers roughly 110,000 Nvidia GPUs along with CPUs, memory, and related infrastructure, according to the SEC filing. Compute capacity is expected to increase gradually till September at a lower cost before reaching the full monthly rate. SpaceX AI cloud business in demand The Google deal follows a similar arrangement SpaceX struck with Anthropic in May, where the Claude chatbot maker got full access to the full computing power of SpaceX's Colossus 1 facility in Memphis, Tennessee. This facility houses more than 220,000 Nvidia processors and provides 300 megawatts of capacity, according to Reuters. Together, the two contracts represent more than $70 billion in total value, provided neither is terminated early before its scheduled end date. On an annual basis, both deals are also worth a total of $26 billion. SpaceX has widely mentioned a target of $75 billion in its upcoming initial public offering, and the company's revenue story and outlook can only be further strengthened by these moves to lock in long-term, high-value AI compute customers. Termination factors and terms The contract can be terminated early in specific cases and these terms have been put in to serve as protections for Google. Google can terminate the agreement after a one-month grace period if SpaceX fails to deliver the agreed number of GPUs by September 30, 2026, or accept whatever capacity SpaceX has delivered at that date for a proportionally reduced fee, according to the filing. After December 31, either side can exit the deal with 90 days' notice. The filing also stated that all intellectual property rights in content and AI models, in addition to all data processed on the infrastructure will belong to Google. GPUs upon GPUs The competition for GPU capacity has continued to grow at an alarming rate, and this deal only proves how crazy the competition has become among companies building large AI systems. Google operates its own massive data center network and custom TPU chips, and in spite of this, still has to pay nearly $1 billion a month to rent Nvidia hardware from another big tech company. For SpaceX, the AI cloud compute hardware industry represents a new revenue stream distinct from its rocket and Starlink satellite businesses. The Colossus facility in Memphis, originally built to serve Musk's own xAI venture, is now generating billions in annual revenue from outside customers.
SpaceX Has $30 Billion Deal to Provide Google With A.I. Computing Power
SpaceX revealed in a regulatory filing on Friday that Google will pay it $920 million a month for computing power, pumping billions of dollars into Elon Musk's rocket company as it prepares for a blockbuster initial public offering. The agreement, which starts in October and runs through June 2029, could earn SpaceX about $30 billion in total. It also helps establish SpaceX -- which owns Mr. Musk's artificial intelligence lab, xAI -- as a major infrastructure provider as companies compete in a fierce global race to dominate A.I. As part of the agreement, Google will gain access to about 110,000 A.I. chips from Nvidia, which Google said would help it meet larger-than-expected customer demand for its A.I. models. The tech giant said in April that its cloud business had contracts totaling $460 billion that had yet to be fulfilled as revenue, indicating enormous demand for its services. "Google Cloud and SpaceX are longtime partners," a Google Cloud spokesman said in a statement. "This is a short-term, timely agreement to ensure we have bridge capacity to meet surging customer demand for our agent platform, Gemini Enterprise, which has been even higher than we expected." SpaceX did not immediately respond to a request for comment. SpaceX reached a similar deal last month to provide Anthropic, another leading A.I. lab, with computing power. Anthropic, which is also expected to go public this year, is paying SpaceX $1.25 billion a month. SpaceX is expected to go public next week in a deal that could value the company at more than $1.7 trillion and make Mr. Musk a trillionaire. As part of that process, the company has shed more light on its financial details in recent weeks to entice investors. Mr. Musk has built a massive supercomputer in Memphis to power xAI. But the company has largely lagged behind competitors like OpenAI, Anthropic and Google. In the run-up to SpaceX's going public, Mr. Musk has increasingly leaned into A.I. He has promoted xAI's computing power as an asset, demonstrating that it can be turned into revenue through deals with Anthropic and Google. Mr. Musk has also announced details of a giant chip factory he's building in Texas. And in April, SpaceX announced a $60 billion deal to acquire the A.I. start-up Cursor, which makes a code-writing assistant. The deal with Google deepens ties between the search giant and the rocket maker. Google owns a roughly 5 percent stake in SpaceX, and has explored the possibility of using SpaceX as a launch partner as Google seeks to put data centers in space, an effort known as Project Suncatcher. Kate Conger is a technology reporter based in San Francisco. She can be reached at [email protected]. The post SpaceX Has $30 Billion Deal to Provide Google With A.I. Computing Power appeared first on New York Times.
SpaceX Has $30 Billion Deal to Provide Google With A.I. Computing Power
Elon Musk's rocket company said Google would pay it $920 million a month, as it prepared for its initial public offering. SpaceX revealed in a regulatory filing on Friday that Google will pay it $920 million a month for computing power, pumping billions of dollars into Elon Musk's rocket company as it prepares for a blockbuster initial public offering. The agreement, which starts in October and runs through June 2029, could earn SpaceX about $30 billion in total. It also helps establish SpaceX -- which owns Mr. Musk's artificial intelligence lab, xAI -- as a major infrastructure provider as companies compete in a fierce global race to dominate A.I. As part of the agreement, Google will gain access to about 110,000 A.I. chips from Nvidia, which Google said would help it meet larger-than-expected customer demand for its A.I. models. The tech giant said in April that its cloud business had contracts totaling $460 billion that had yet to be fulfilled as revenue, indicating enormous demand for its services. "Google Cloud and SpaceX are longtime partners," a Google Cloud spokesman said in a statement. "This is a short-term, timely agreement to ensure we have bridge capacity to meet surging customer demand for our agent platform, Gemini Enterprise, which has been even higher than we expected." SpaceX did not immediately respond to a request for comment. SpaceX reached a similar deal last month to provide Anthropic, another leading A.I. lab, with computing power. Anthropic, which is also expected to go public this year, is paying SpaceX $1.25 billion a month. SpaceX is expected to go public next week in a deal that could value the company at more than $1.7 trillion and make Mr. Musk a trillionaire. As part of that process, the company has shed more light on its financial details in recent weeks to entice investors. Mr. Musk has built a massive supercomputer in Memphis to power xAI. But the company has largely lagged behind competitors like OpenAI, Anthropic and Google. In the run-up to SpaceX's going public, Mr. Musk has increasingly leaned into A.I. He has promoted xAI's computing power as an asset, demonstrating that it can be turned into revenue through deals with Anthropic and Google. Mr. Musk has also announced details of a giant chip factory he's building in Texas. And in April, SpaceX announced a $60 billion deal to acquire the A.I. start-up Cursor, which makes a code-writing assistant. The deal with Google deepens ties between the search giant and the rocket maker. Google owns a roughly 5 percent stake in SpaceX, and has explored the possibility of using SpaceX as a launch partner as Google seeks to put data centers in space, an effort known as Project Suncatcher.
SpaceX signs $30 billion AI deal with Google
Anthropic similarly agreed to pay Elon Musk's tech firm some $45 billion for compute capacity last month Google has agreed to pay SpaceX $920 million per month for AI compute capacity through June 2029, according to the space-tech behemoth's filing with the US Securities and Exchange Commission. The arrangement is worth almost $30 billion over the full period and covers the rental of "approximately 110,000 NVIDIA GPUs, CPUs, memory, and other related components," Business Insider reported on Friday. Google told the outlet that the contract is intended to meet demand for Gemini Enterprise, its agentic AI platform, and described SpaceX as a long-time Google Cloud partner. The agreement follows a similar contract with Anthropic in May. The maker of Claude AI confirmed it would pay SpaceX $1.25 billion per month for access to its data centers. Data Center Dynamics reported that Anthropic's contract runs until May 2029, putting the full value at roughly $45 billion over three years. SpaceX said in its filing that the contracts allow it to monetize unused compute capacity while keeping the option to reallocate capacity for internal use. The space company, which merged with Elon Musk's X and xAI in January, generated nearly $4.7 billion in revenue and lost almost $4.3 billion in the first quarter of 2026. The AI agreements have become a major selling point ahead of the company's highly anticipated $1.77 trillion public listing next week. The new partnerships between AI rivals come as the Pentagon has deepened ties with major tech suppliers after ostracizing Anthropic for publicly resisting its killer AI push. The US military reportedly used Anthropic's Claude during the operation to kidnap Venezuela's Nicolas Maduro. In Iran, Palantir software that relies heavily on Anthropic's AI workflows reportedly selected a girls' elementary school in Minab as a valid target, based on outdated, human-compiled maps. The US Department of War announced deals with SpaceX, OpenAI, Google, NVIDIA, Reflection, Microsoft, Amazon Web Services and Oracle on May 1 to deploy their AI systems for "lawful operational use." The systems are to be integrated into the US Department of War's classified Impact Level 6 and Impact Level 7 networks to "streamline data synthesis, elevate situational understanding, and augment warfighter decision-making in complex operational environments."
SpaceX IPO: rockets, AI losses and Musk in control
SpaceX is inviting investors to bet on Elon Musk's vision of AI data centers in space and humans on Mars. The sky-high valuation for SpaceX -- nearly $1.8 trillion -- is based on the idea that his legendary run will continue and that Musk can achieve his goal of data centers in space and putting people on Mars. SpaceX is inviting investors to bet on Elon Musk's vision of AI data centers in space and humans on Mars. It's gamble that comes with limited voting rights, restricted ability to sue, and a business that is currently losing billions of dollars a year. Magic touch Musk's celebrity and his track record turning Tesla and SpaceX into global giants have earned him a reputation as the man who sees where technology is heading -- and builds a world-class business from it. The sky-high valuation for SpaceX -- nearly $1.8 trillion -- is based on the idea that his legendary run will continue and that Musk can achieve his goal of data centers in space and putting people on Mars. But nothing at the core of the business as it stands today lines up with that valuation, with the company growing fast but losing money. Revenue hit $18.7 billion in 2025 -- up 33 percent from the year before -- but costs grew even faster, producing a net loss of $4.9 billion. In the first quarter of 2026, it lost another $4.3 billion. Yet SpaceX's IPO filing claims it could pull in over $28.5 trillion in revenue. The real money, in SpaceX's telling, is in internet connectivity through its Starlink satellite service and above all artificial intelligence, provided by data centers rocketed into space. Yet xAI -- the AI unit of SpaceX -- has struggled to keep pace with rivals. Its standalone AI revenue stands at around $500 million, a fraction of OpenAI's and Anthropic's revenue. Musk in control Musk will keep an iron grip on the rocket and AI giant even after it brings in a legion of new investors. Ordinary investors who buy SpaceX stock will get what are called Class A shares, which give them one vote each on company decisions. Musk, meanwhile, holds a different kind of share -- Class B -- that carries 10 votes apiece. His votes will simply swamp everyone else's with about 82 percent of the total voting power in the company. Known as a dual-class structure, tech giants like Google, Meta and Snap have used the same playbook to keep their founders in charge after going public. Don't sue me Frustrated by years of shareholder lawsuits against publicly traded Tesla, Musk has ensured that SpaceX is built inside a legal fortress. SpaceX requires shareholder lawsuits to be filed in a specialized Texas business court. If a judge refuses, disputes go to private arbitration with no jury and no class actions -- stripping investors of the main legal tool used to take on large corporations. The filing acknowledges there is "risk" a court could reject these provisions if challenged, but until one does, that is the rule. Regular investor Tapping into his legion of fans, SpaceX will set aside 30 percent of the IPO shares for everyday investors, not just big Wall Street firms. In a normal IPO, institutions usually get most of the shares, so this is a bigger-than-usual chance for regular people to buy in. Why does that matter? Because it changes who gets to own the stock on day one. If more shares go to individual investors, the company is trying to spread ownership beyond hedge funds and mutual funds, some of whom may balk at the company's financials. It can also make the stock more volatile at first. If a lot of excited people rush to buy, the price can jump quickly. No choice but to buy More than 60 percent of US stocks are owned by passive funds that copy a market index like the Nasdaq 100. Nasdaq changed its rules in May to allow SpaceX to join the index within 15 trading days -- down from the previous three months. The index funds, whose investors include US retirement plans, will have to find room for the new entrant, creating a big wave of buying for SpaceX and selling of other stocks. Moreover, only 4 percent of the $1.77 trillion company will be made available for purchase -- an exceptionally thin offering. It means all those funds -- and Musk fans -- buying SpaceX will be chasing a very small pool of available stock, which could push the price up sharply.
Goldman Sachs sees 100-fold jump in SpaceX AI revenue to $322 billion by 2030: Report
People walk past a SpaceX Falcon 9 rocket displayed at a SpaceX facility in Hawthorne, California. (File/AFP) Elon Musk-led SpaceX could see its artificial intelligence business expand at an extraordinary pace over the next decade, with Goldman Sachs projecting a 100-fold surge in revenue to $322 billion by 2030, the Financial Times reported. The forecast, the report said, is based on projections shared by the Wall Street bank with a potential investor and underscores the scale of expectations surrounding one of the most closely watched listings in recent years. According to the report, SpaceX's AI division is expected to generate just $3.2 billion in 2025 before rising sharply to $322 billion by 2030 -- marking a dramatic transformation of what is currently a relatively nascent revenue stream. Overall, Goldman Sachs estimates SpaceX's total revenue could climb to $474 billion by 2030, up from $18.7 billion last year, suggesting that AI could become one of the company's most significant future growth engines alongside its core aerospace and satellite businesses. AI segment seen as key growth driver The bank has also projected a steep near-term acceleration in SpaceX's AI-linked operations. Revenue from the segment is expected to rise 388 per cent year-on-year to $15.6 billion in 2026, before reaching $34.5 billion in 2027, according to the report, which cited a person familiar with the matter. The AI business reportedly includes Elon Musk's broader technology ecosystem, spanning xAI and the social media platform X. However, the structure of revenue attribution and integration between these units remains unclear. Mega IPO plans and underwriting push The forecasts come as SpaceX prepares for what could become one of the largest initial public offerings in history. The company is reportedly aiming to raise around $75 billion at a valuation of about $1.75 trillion, placing it among the most valuable US-listed firms at listing. Major global investment banks, including Morgan Stanley, Bank of America, Citigroup and JPMorgan Chase, are among the underwriters supporting the offering, alongside Goldman Sachs. The company has set an IPO share price of $135 and has begun its investor roadshow, with pricing expected on June 11 and trading on the Nasdaq scheduled to begin the following day. Despite the ambitious targets, investor interest is expected to remain strong, driven by Elon Musk's track record across companies including electric vehicles, rockets and artificial intelligence ventures. Valuation gap and investor caution However, analysts remain divided on the company's aggressive projections. Research firm Morningstar has reportedly valued SpaceX at around $780 billion -- less than half of its targeted IPO valuation. Morningstar has also flagged uncertainty around the long-term economics of SpaceX's AI ambitions, citing unclear monetisation pathways and intensifying competition from established players such as OpenAI and Anthropic. Questions also remain over how effectively SpaceX can integrate and scale AI-driven businesses alongside its core space and satellite operations, especially at the magnitude implied by Goldman Sachs' forecasts.
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SpaceX IPO: rockets, AI losses and Musk in control
Washington - SpaceX is inviting investors to bet on Elon Musk's vision of AI data centers in space and humans on Mars. It's gamble that comes with limited voting rights, restricted ability to sue, and a business that is currently losing billions of dollars a year. - Magic touch - Musk's celebrity and his track record turning Tesla and SpaceX into global giants have earned him a reputation as the man who sees where technology is heading -- and builds a world-class business from it. The sky-high valuation for SpaceX -- nearly $1.8 trillion -- is based on the idea that his legendary run will continue and that Musk can achieve his goal of data centers in space and putting people on Mars. But nothing at the core of the business as it stands today lines up with that valuation, with the company growing fast but losing money. Revenue hit $18.7 billion in 2025 -- up 33 percent from the year before -- but costs grew even faster, producing a net loss of $4.9 billion. In the first quarter of 2026, it lost another $4.3 billion. Yet SpaceX's IPO filing claims it could pull in over $28.5 trillion in revenue. The real money, in SpaceX's telling, is in internet connectivity through its Starlink satellite service and above all artificial intelligence, provided by data centers rocketed into space. Yet xAI -- the AI unit of SpaceX -- has struggled to keep pace with rivals. Its standalone AI revenue stands at around $500 million, a fraction of OpenAI's and Anthropic's revenue. - Musk in control - Musk will keep an iron grip on the rocket and AI giant even after it brings in a legion of new investors. Ordinary investors who buy SpaceX stock will get what are called Class A shares, which give them one vote each on company decisions. Musk, meanwhile, holds a different kind of share -- Class B -- that carries 10 votes apiece. His votes will simply swamp everyone else's with about 82 percent of the total voting power in the company. Known as a dual-class structure, tech giants like Google, Meta and Snap have used the same playbook to keep their founders in charge after going public. - Don't sue me - Frustrated by years of shareholder lawsuits against publicly traded Tesla, Musk has ensured that SpaceX is built inside a legal fortress. SpaceX requires shareholder lawsuits to be filed in a specialized Texas business court. If a judge refuses, disputes go to private arbitration with no jury and no class actions -- stripping investors of the main legal tool used to take on large corporations. The filing acknowledges there is "risk" a court could reject these provisions if challenged, but until one does, that is the rule. - Regular investor - Tapping into his legion of fans, SpaceX will set aside 30 percent of the IPO shares for everyday investors, not just big Wall Street firms. In a normal IPO, institutions usually get most of the shares, so this is a bigger-than-usual chance for regular people to buy in. Why does that matter? Because it changes who gets to own the stock on day one. If more shares go to individual investors, the company is trying to spread ownership beyond hedge funds and mutual funds, some of whom may balk at the company's financials. It can also make the stock more volatile at first. If a lot of excited people rush to buy, the price can jump quickly. - No choice but to buy - More than 60 percent of US stocks are owned by passive funds that copy a market index like the Nasdaq 100. Nasdaq changed its rules in May to allow SpaceX to join the index within 15 trading days -- down from the previous three months. The index funds, whose investors include US retirement plans, will have to find room for the new entrant, creating a big wave of buying for SpaceX and selling of other stocks. Moreover, only 4 percent of the $1.77 trillion company will be made available for purchase -- an exceptionally thin offering. It means all those funds -- and Musk fans -- buying SpaceX will be chasing a very small pool of available stock, which could push the price up sharply.
SpaceX hopes to raise $75B when world's biggest-ever IPO lifts off next week
SpaceX hopes to raise $75B when world's biggest-ever IPO lifts off next week Elon Musk's Space Exploration Technologies Corp. said today it's hoping to raise a staggering $75 billion when it goes public later this month, setting the stage for what would be the largest stock market debut in history. It puts Musk on course to become the world's first trillionaire, based on the estimated value of his assets. The rocket company plans to sell 555.6 million shares at a price of $135 through its initial public offering. The proceeds of the sale would easily surpass the current IPO world record of $26 billion, which was raised by the Saudi Arabian oil giant Saudi Aramco in 2019. SpaceX would have a market value of $1.77 trillion following the IPO, putting it well into the top ten most valuable companies. Only six companies in the S&P 500 index currently have a larger value, led by Nvidia Corp. at $5.2 trillion. In an amended prospectus filed with the Securities and Exchange Commission today, SpaceX also explained exactly how much control Musk will have over the company. As its Chief Executive, Chief Technical Officer and Chairman, his voting power will come from his ownership of 5.22 billion Class B shares. That gives him 10 votes for every share he holds, which amounts of 82.4% of the total voting power in the company. In other words, Musk will always have the final say. Forbes estimates Musk's current net worth at around $826 billion, with his stake in SpaceX estimated to be worth around $542 billion, based on the company's $1.25 trillion valuation. That means that if SpaceX's valuation increases to $1.77 trillion following the IPO, Musk's overall net worth would grow by around $233 billion, making him the world's first ever trillionaire. Whether or not Musk will eventually become a multi-trillionaire remains to be seen, but the fantastical plans detailed in SpaceX's prospectus suggest there's every chance he will do, if the company fulfills its ambitions. The most colorful parts of the document offer a stark contrast to the traditionally dry and overly technical language seen in IPO paperwork. For instance, the company details how the proceeds of the sale will help to return astronauts to the Moon and ultimately put humans on Mars too. It even outlines Musk's ultimate ambition to build a "permanent human colony" on the red planet that would be populated by "at least one million inhabitants." Musk has previously justified the need for a human outpost on Mars, saying that humanity basically needs a backup plan should something catastrophic happen to Earth. Musk's other publicly traded company, Tesla Inc., also has grand ambitions, with one of its goals being to manufacture fleets of robotaxis that can ferry passengers around cities without human drivers. Tesla has also designed a series of humanoid robots, and it's thought that they could be used to lay the groundwork and build the initial infrastructure needed for a Mars-based colony. Some analysts, such as Dan Ives of Wedbush Securities, speculate that Musk may ultimately seek to merge SpaceX with Tesla, perhaps as early as next year. There is a precedent for this. In February, SpaceX merged with another of Musk's companies, xAI Corp., which owns the X.com social media platform formerly known as Twitter. xAI is Musk's artificial intelligence company, and it's set to play a key role in growing SpaceX's revenue. According to Musk, the rocket maker could eventually generate revenue of up to $26.5 trillion annually, if it succeeds in another ambitious plan to put data centers into low-Earth orbit, where they can tap free and unlimited solar energy. SpaceX's initial focus following the IPO will be to use the proceeds to fund expanded infrastructure for both its rocket business and its AI projects, and also to invest further in Starlink Mobile, the satellite service that provides broadband internet connectivity to any part of the planet. The company is expected to list on the Nasdaq exchange under the ticker symbol "SPCX" and could begin trading by the end of next week. Of course, SpaceX isn't the only massive market debut expected this summer. Earlier this week, the AI company Anthropic PBC confidentially filed its own IPO paperwork. Although it hasn't provided any financial details yet, it's expected that the sale will put its market capitalization above $965 billion. Meanwhile, ChatGPT maker OpenAI Group PBC is also widely expected to file for an IPO soon, because it doesn't want to be left behind its rivals. It hasn't done so yet, but most analysts believe that a listing is imminent. "This listing represents the first major test for public markets after years of muted IPO activity, with SpaceX paving the way for AI giants Anthropic and OpenAI to follow soon after," Ives said.
SpaceX's IPO is set to be the biggest ever and could make Elon Musk a trillionaire
By ALEX VEIGA and BERNARD CONDON, AP Business Writers NEW YORK (AP) -- SpaceX says it plans to raise up to $75 billion when it goes public this month, setting the stage for the largest-ever stock market debut and putting Elon Musk on course to becoming the world's first trillionaire. The company, formally known as Space Exploration Technologies Corp., said Wednesday it will sell 555.6 million shares at $135 a piece in an initial public offering. The estimated proceeds would easily top the $26 billion raised by oil giant Saudi Aramco in 2019. The offering would also give SpaceX a market value of $1.77 trillion. Only six companies in the S&P 500 are currently worth more, with Nvidia tops at $5.2 trillion. Besides the size of the offering and the expected proceeds, SpaceX's amended prospectus updates details about how much control of the company Musk will have. As SpaceX's CEO, chief technical officer and chairman, Musk's voting power will come primarily through his ownership of 5.22 billion Class B shares, which give the holder 10 votes for every share held. According to the filing, Musk would have 82.4% of the voting power in the company. Forbes currently values Musk's net worth at $826 billion and his stake in SpaceX at $542 billion. The estimated value of his SpaceX holdings was based on an overall value for the company of $1.25 trillion. Based on those numbers, a $1.77 trillion valuation for SpaceX would boost Musk's net worth by $223 billion, making him a trillionaire. However, much of Musk's worth is in stock that he has yet to cash in. Even as it makes a bid for a blockbuster market debut, SpaceX is currently losing billions of dollars a year. The filing shows that the company lost $2.6 billion from operations last year on $18.7 billion in revenue, and the losses kept piling up at the start of this year, too. Fantastical plans Time will tell how SpaceX fares on the market. Musk's plans for the company are as fantastical as the money he hopes raise in the sale. Colorful, even frightening in parts, the IPO document strikes a contrast with the typically dry, technical prose in IPO documents, detailing plans to use proceeds from the sale to help put men on the moon again and perhaps even Mars. In one section, it talks of a need to build "a permanent human colony" on the red planet with "at least one million inhabitants" as existential threats loom that could consign man to "the same fate as the dinosaurs." Musk has almost equally ambitious plans for his other publicly traded company, Tesla. His goal is to transform the maker of electric vehicles into a producer of robotaxis and humanoid robots. Dan Ives of Wedbush Securities wrote in a research note that he expects Tesla and SpaceX to merge next year. AI plays a key role Key to the success of both companies -- and any merged entity -- is artificial intelligence. In its IPO filing, SpaceX says it sees potential revenue from AI of up to $26.5 trillion. But that depends on another lofty Musk ambition -- putting data centers in space, which is not technologically possible at the moment. Transforming his space company into a primarily AI-focused company will be a challenge for Musk, who started xAI in 2023 with 11 other co-founders who have all since left. Some were recruited away by rivals. Its main AI product, the chatbot Grok, is "less impressive than anything that we see from any other major player in the space, whether that's OpenAI, or Anthropic, or (Google's) Gemini," said IDC analyst Arnal Dayaratna. Dayaratna said that doesn't mean SpaceX doesn't have potential as a major AI player, thanks in part to its computing partnership with Anthropic and Musk's recent deal that gave SpaceX the rights to buy AI coding tool Cursor for $60 billion later this year. Folding in Cursor's capabilities would give SpaceX access to the coveted business customers now using Anthropic's Claude or OpenAI's ChatGPT. SpaceX plans to use the net proceeds from the IPO to fund the expansion of infrastructure for its AI and rocket businesses, and to beef up the constellation of satellites that power Starlink Mobile, among other investments. The company plans to list on the Nasdaq under the symbol "SPCX" and could begin trading as soon as the end of next week. And SpaceX isn't the only colossal market debut investors are now bracing for. Earlier this week, Anthropic submitted a confidential filing with the U.S. Securities and Exchange Commission to officially start its own IPO clock. OpenAI has not yet reported filing the initial SEC paperwork, but an IPO from the ChatGPT maker is widely expected. "This listing represents the first major test for public markets after years of muted IPO activity with SpaceX paving the way for AI giants Anthropic and OpenAI to follow soon after," Ives wrote. Associated Press Technology Writer Matt O'Brien contributed.
Elon Musk net worth could hit $1 trillion with SpaceX's IPO
5 reasons Elon Musk could become the world's first trillionaire A planned SpaceX public offering could make history and dramatically increase the billionaire entrepreneur's already massive fortune Elon Musk may soon achieve a financial milestone that no individual has ever reached. The billionaire entrepreneur is reportedly on the verge of becoming the world's first trillionaire if SpaceX moves forward with a highly anticipated initial public offering expected later this month. The proposed debut could not only reshape the financial markets but also significantly expand Musk's wealth, further cementing his status as the richest person on the planet. At the center of the excitement is SpaceX, the private aerospace company Musk founded in 2002. Over the past two decades, the company has transformed from an ambitious startup into one of the world's most influential space and technology businesses. If the IPO proceeds at its reported valuation, it could become the largest stock market debut ever recorded. 1. SpaceX could launch at a record-breaking valuation According to reports, SpaceX is seeking a valuation of approximately $1.75 trillion as it prepares to enter the public markets. That figure would instantly place the company among the most valuable businesses in the world and represent one of the largest corporate valuations ever assigned to a newly public company. The proposed share price is expected to be around $135 per share, potentially generating roughly $75 billion through the offering. Financial analysts have noted that no company has previously completed a public offering on this scale, making the transaction one of the most closely watched events in recent market history. 2. Musk's SpaceX stake could be worth hundreds of billions Much of Musk's personal fortune is tied directly to the companies he founded and continues to lead. Reports indicate that he owns millions of SpaceX shares in addition to hundreds of millions of stock options. If the company begins trading at its anticipated valuation, those holdings alone could be worth hundreds of billions of dollars. The dramatic increase in the value of his SpaceX stake would substantially boost his overall wealth and potentially move him closer to the trillion dollar threshold. The IPO would represent one of the most significant wealth creation events ever experienced by a single individual. His business empire extends far beyond SpaceX While SpaceX is driving the latest headlines, Musk's fortune is spread across a broad portfolio of companies. In addition to the rocket manufacturer, he maintains major interests in Tesla, xAI, Neuralink and The Boring Company. Each venture operates in a different industry, ranging from electric vehicles and artificial intelligence to brain computer interfaces and transportation infrastructure. The combined value of these businesses has helped Musk build one of the largest fortunes ever accumulated, with SpaceX now emerging as a potentially dominant contributor to his net worth. SpaceX would join the world's most valuable companies A valuation approaching $1.75 trillion would elevate SpaceX into an elite category of global corporations. Only a small number of publicly traded companies currently exceed that level of market value. If the proposed valuation holds, SpaceX would immediately rank among the most valuable enterprises in the United States. The achievement would reflect the company's rapid expansion in satellite communications, commercial launches, government contracts and space exploration initiatives. SpaceX has become a major force within the aerospace industry, helping redefine how space missions are developed and executed. Musk is expected to remain firmly in control Even after becoming a public company, SpaceX is expected to remain largely under Musk's control. Reports suggest the entrepreneur would retain substantial voting power through a share structure that grants enhanced influence over major corporate decisions. That arrangement would allow him to continue guiding the company's long term strategy while maintaining significant authority over its future direction. For investors, Musk's continued involvement is likely to be viewed as a key factor in the company's appeal, given his role in building SpaceX into a global leader in private spaceflight. A historic financial milestone may be approaching The potential SpaceX IPO arrives during a period of extraordinary growth for Musk's business empire. It also follows continued discussion surrounding compensation packages and performance incentives linked to Tesla, which have generated attention from investors and corporate governance experts alike. If SpaceX successfully debuts at its reported valuation, Musk could become the first person in history to achieve a net worth of $1 trillion. While market conditions and investor demand will ultimately determine the outcome, the possibility alone underscores the unprecedented scale of the entrepreneur's influence across technology, transportation and space exploration. Whether or not the trillion-dollar milestone is reached immediately, the planned public offering represents another remarkable chapter in Musk's ongoing business story and one that could redefine wealth creation in the modern era.
SpaceX sets the stage for a record $75 billion IPO
(CNN) -- Elon Musk's SpaceX unveiled plans Wednesday to raise $75 billion in an initial public offering of its stock that would value the company at roughly $1.77 trillion. The blockbuster debut could make Musk - already the world's richest person - the first trillionaire. SpaceX plans to sell 555.6 million shares at an initial price of $135 a share, the company said in a filing with the Securities and Exchange Commission. The decision to dictate one price target, as opposed to offering a range, is a unique move that reflects the hot IPO market around the AI craze and Musk's own tendency for mega-scale goals. Musk, who currently owns half of SpaceX, would still control nearly half of the company's total shares after the offering. However, some of those are special shares with greater voting power, and Musk will control 82.4% of the voting power after the IPO, according to the filing. The debut will be the biggest public offering in history, topping the previous record $29.4 billion raised by oil giant Saudi Aramco in 2019. The eye-popping figures come as the artificial intelligence race has sent startups to startling valuations even before they go public. Besides its rocket and satellite business, SpaceX has become a major player in artificial intelligence, a sector that's recently powered a Wall Street rally as tech companies announce developments in rapid succession. But those companies are still figuring out many practical applications for the technology - and how to turn a profit. SpaceX's long-anticipated public offering, which is set to start trading next Friday, is the latest sign of the commercialization of space travel and ambitious plans to establish human outposts on the Moon and Mars. But it's also indicative of Wall Street's current fixation on AI and the unprecedented wealth concentrated in the hands of technology executives. The SpaceX IPO documents emphasized not just expanding human space exploration but also the company's plans for artificial intelligence and putting data centers in space. The company plans to use proceeds from this stock offering, and likely future stock sales, to feed the massive capital expenditure needs of both its space and AI businesses. When Musk founded SpaceX in 2002, it was focused on building rockets and delivering payloads to outer space. The company expanded into telecommunications in 2021 when it rolled out Starlink, its satellite-based internet service. In February this year, Musk merged SpaceX with xAI, his artificial intelligence company that includes his social media platform, X. The company's rockets dominate the corporate space sector, launching not just astronauts but also satellites. But the AI component is a cornerstone of the company's valuation. Wall Street has been driving up the value of firms tied to the sector. While profits are still rare in the field, investors are betting that AI will increase productivity and corporate profits in the future, even if that comes at the cost of some existing jobs. Musk's stake in SpaceX would be worth $841 billion, assuming the company's shares do in fact trade at $135 a share. That alone would be roughly what Forbes' real team billionaire tracker estimates as the combined current net worth of the next three richest people on the list - Google founders Larry Page and Sergey Brin and another software mogul, Larry Ellison. Add in Musk's stake in Tesla, worth just less than $300 billion at Wednesday's closing price, and his net worth could reach up to $1.1 billion, more than the next three richest people, plus number five on the list, Amazon founder Jeff Bezos. SpaceX revealed its IPO plans last month - but stopped short of disclosing the price it expected its shares to fetch and, therefore, the valuation it is targeting. SpaceX isn't the only AI heavyweight preparing to go public: Anthropic has already announced plans, with rival OpenAI expected to follow. Together, the offerings could mint thousands of millionaires - and even some billionaires - despite the fact that these companies have yet to demonstrate a clear path to profitability.
SpaceX's IPO is set to be the biggest ever and could make Elon Musk a trillionaire
By ALEX VEIGA and BERNARD CONDON, AP Business Writers NEW YORK (AP) -- SpaceX says it plans to raise up to $75 billion when it goes public this month, setting the stage for the largest-ever stock market debut and putting Elon Musk on course to becoming the world's first trillionaire. The company, formally known as Space Exploration Technologies Corp., said Wednesday it will sell 555.6 million shares at $135 a piece in an initial public offering. The estimated proceeds would easily top the $26 billion raised by oil giant Saudi Aramco in 2019. The offering would also give SpaceX a market value of $1.77 trillion. Only six companies in the S&P 500 are currently worth more, with Nvidia tops at $5.2 trillion. Besides the size of the offering and the expected proceeds, SpaceX's amended prospectus updates details about how much control of the company Musk will have. As SpaceX's CEO, chief technical officer and chairman, Musk's voting power will come primarily through his ownership of 5.22 billion Class B shares, which give the holder 10 votes for every share held. According to the filing, Musk would have 82.4% of the voting power in the company. Forbes currently values Musk's net worth at $826 billion and his stake in SpaceX at $542 billion. The estimated value of his SpaceX holdings was based on an overall value for the company of $1.25 trillion. Based on those numbers, a $1.77 trillion valuation for SpaceX would boost Musk's net worth by $223 billion, making him a trillionaire. However, much of Musk's worth is in stock that he has yet to cash in. Even as it makes a bid for a blockbuster market debut, SpaceX is currently losing billions of dollars a year. The filing shows that the company lost $2.6 billion from operations last year on $18.7 billion in revenue, and the losses kept piling up at the start of this year, too. Fantastical plans Time will tell how SpaceX fares on the market. Musk's plans for the company are as fantastical as the money he hopes raise in the sale. Colorful, even frightening in parts, the IPO document strikes a contrast with the typically dry, technical prose in IPO documents, detailing plans to use proceeds from the sale to help put men on the moon again and perhaps even Mars. In one section, it talks of a need to build "a permanent human colony" on the red planet with "at least one million inhabitants" as existential threats loom that could consign man to "the same fate as the dinosaurs." Musk has almost equally ambitious plans for his other publicly traded company, Tesla. His goal is to transform the maker of electric vehicles into a producer of robotaxis and humanoid robots. Dan Ives of Wedbush Securities wrote in a research note that he expects Tesla and SpaceX to merge next year. AI plays a key role Key to the success of both companies -- and any merged entity -- is artificial intelligence. In its IPO filing, SpaceX says it sees potential revenue from AI of up to $26.5 trillion. But that depends on another lofty Musk ambition -- putting data centers in space, which is not technologically possible at the moment. Transforming his space company into a primarily AI-focused company will be a challenge for Musk, who started xAI in 2023 with 11 other co-founders who have all since left. Some were recruited away by rivals. Its main AI product, the chatbot Grok, is "less impressive than anything that we see from any other major player in the space, whether that's OpenAI, or Anthropic, or (Google's) Gemini," said IDC analyst Arnal Dayaratna. Dayaratna said that doesn't mean SpaceX doesn't have potential as a major AI player, thanks in part to its computing partnership with Anthropic and Musk's recent deal that gave SpaceX the rights to buy AI coding tool Cursor for $60 billion later this year. Folding in Cursor's capabilities would give SpaceX access to the coveted business customers now using Anthropic's Claude or OpenAI's ChatGPT. SpaceX plans to use the net proceeds from the IPO to fund the expansion of infrastructure for its AI and rocket businesses, and to beef up the constellation of satellites that power Starlink Mobile, among other investments. The company plans to list on the Nasdaq under the symbol "SPCX" and could begin trading as soon as the end of next week. And SpaceX isn't the only colossal market debut investors are now bracing for. Earlier this week, Anthropic submitted a confidential filing with the U.S. Securities and Exchange Commission to officially start its own IPO clock. OpenAI has not yet reported filing the initial SEC paperwork, but an IPO from the ChatGPT maker is widely expected. "This listing represents the first major test for public markets after years of muted IPO activity with SpaceX paving the way for AI giants Anthropic and OpenAI to follow soon after," Ives wrote. Associated Press Technology Writer Matt O'Brien contributed.
SpaceX's IPO is set to be the biggest ever and could make Elon Musk a trillionaire
By ALEX VEIGA and BERNARD CONDON, AP Business Writers NEW YORK (AP) -- SpaceX says it plans to raise up to $75 billion when it goes public this month, setting the stage for the largest-ever stock market debut and putting Elon Musk on course to becoming the world's first trillionaire. The company, formally known as Space Exploration Technologies Corp., said Wednesday it will sell 555.6 million shares at $135 a piece in an initial public offering. The estimated proceeds would easily top the $26 billion raised by oil giant Saudi Aramco in 2019. The offering would also give SpaceX a market value of $1.77 trillion. Only six companies in the S&P 500 are currently worth more, with Nvidia tops at $5.2 trillion. Besides the size of the offering and the expected proceeds, SpaceX's amended prospectus updates details about how much control of the company Musk will have. As SpaceX's CEO, chief technical officer and chairman, Musk's voting power will come primarily through his ownership of 5.22 billion Class B shares, which give the holder 10 votes for every share held. According to the filing, Musk would have 82.4% of the voting power in the company. Forbes currently values Musk's net worth at $826 billion and his stake in SpaceX at $542 billion. The estimated value of his SpaceX holdings was based on an overall value for the company of $1.25 trillion. Based on those numbers, a $1.77 trillion valuation for SpaceX would boost Musk's net worth by $223 billion, making him a trillionaire. However, much of Musk's worth is in stock that he has yet to cash in. Even as it makes a bid for a blockbuster market debut, SpaceX is currently losing billions of dollars a year. The filing shows that the company lost $2.6 billion from operations last year on $18.7 billion in revenue, and the losses kept piling up at the start of this year, too. Fantastical plans Time will tell how SpaceX fares on the market. Musk's plans for the company are as fantastical as the money he hopes raise in the sale. Colorful, even frightening in parts, the IPO document strikes a contrast with the typically dry, technical prose in IPO documents, detailing plans to use proceeds from the sale to help put men on the moon again and perhaps even Mars. In one section, it talks of a need to build "a permanent human colony" on the red planet with "at least one million inhabitants" as existential threats loom that could consign man to "the same fate as the dinosaurs." Musk has almost equally ambitious plans for his other publicly traded company, Tesla. His goal is to transform the maker of electric vehicles into a producer of robotaxis and humanoid robots. Dan Ives of Wedbush Securities wrote in a research note that he expects Tesla and SpaceX to merge next year. AI plays a key role Key to the success of both companies -- and any merged entity -- is artificial intelligence. In its IPO filing, SpaceX says it sees potential revenue from AI of up to $26.5 trillion. But that depends on another lofty Musk ambition -- putting data centers in space, which is not technologically possible at the moment. Transforming his space company into a primarily AI-focused company will be a challenge for Musk, who started xAI in 2023 with 11 other co-founders who have all since left. Some were recruited away by rivals. Its main AI product, the chatbot Grok, is "less impressive than anything that we see from any other major player in the space, whether that's OpenAI, or Anthropic, or (Google's) Gemini," said IDC analyst Arnal Dayaratna. Dayaratna said that doesn't mean SpaceX doesn't have potential as a major AI player, thanks in part to its computing partnership with Anthropic and Musk's recent deal that gave SpaceX the rights to buy AI coding tool Cursor for $60 billion later this year. Folding in Cursor's capabilities would give SpaceX access to the coveted business customers now using Anthropic's Claude or OpenAI's ChatGPT. SpaceX plans to use the net proceeds from the IPO to fund the expansion of infrastructure for its AI and rocket businesses, and to beef up the constellation of satellites that power Starlink Mobile, among other investments. The company plans to list on the Nasdaq under the symbol "SPCX" and could begin trading as soon as the end of next week. And SpaceX isn't the only colossal market debut investors are now bracing for. Earlier this week, Anthropic submitted a confidential filing with the U.S. Securities and Exchange Commission to officially start its own IPO clock. OpenAI has not yet reported filing the initial SEC paperwork, but an IPO from the ChatGPT maker is widely expected. "This listing represents the first major test for public markets after years of muted IPO activity with SpaceX paving the way for AI giants Anthropic and OpenAI to follow soon after," Ives wrote. Associated Press Technology Writer Matt O'Brien contributed.
SpaceX targets $1.8T valuation in historic IPO, solidifying Musk's control
The largest IPO in history could raise up to $75 billion while handing Elon Musk over 82% of voting control. SpaceX is preparing to go public at a valuation of at least $1.8 trillion, a figure that would make it the most valuable company to ever hit the public markets through an IPO. Elon Musk will walk away from the process with more voting power than he had going in. The listing is scheduled for June 12, 2026, on Nasdaq under the ticker SPCX. SpaceX plans to issue 555.6 million shares at approximately $135 each, with potential proceeds reaching up to $75 billion. The mechanics of Musk's grip Post-IPO, Musk is expected to retain between 82% and over 85% of voting control over the company through a dual-class share structure. The $1.8 trillion target represents a modest reduction from earlier expectations. Previous reports had pegged the valuation at over $2 trillion. SpaceX previously carried a private valuation around $800 billion. So going public at $1.8 trillion means existing shareholders are looking at a more-than-double return just on the listing event itself. 21 banks, one massive roadshow The company is working with 21 banks to facilitate the offering, led by Morgan Stanley, Goldman Sachs, and JPMorgan, with Bank of America and Citi also among the lead underwriters. A prospectus was expected on May 21, with the roadshow kicking off June 4. Pricing is set for June 11, just one day before shares begin trading. The SEC granted an expedited review process. What this means for investors A $75 billion IPO is a massive liquidity event. Fund managers rebalancing portfolios to make room for SPCX shares might trim positions in tech stocks, growth equities, or crypto-adjacent public companies. At $1.8 trillion, SpaceX would instantly rank among the top five or six most valuable companies on Earth. When companies stay private longer, they capture more of the upside before retail investors get access. SpaceX's private valuation was around $800 billion before this listing. Musk's retained voting control means SpaceX's strategic direction won't be subject to activist investor campaigns or board-level power struggles. Musk simultaneously runs Tesla, leads xAI, and owns X.
SpaceX sets $175 billion IPO target as Musk on track to become first trillionaire
The offering will also further cement founder Elon Musk's control over the company. According to the filing, SpaceX will maintain a dual-class share structure, and following the IPO, he is expected to control about 82.4% of the company's voting power. The IPO would place SpaceX among the most valuable publicly traded companies in the world. At a projected market capitalization of $1.77 trillion, only a handful of companies in the S&P 500 command higher valuations, led by Nvidia at roughly $5.2 trillion. The public offering could also significantly boost Musk's already record-setting fortune. Forbes estimates his net worth at about $826 billion, including a SpaceX stake valued at roughly $542 billion. A successful IPO at the proposed valuation would likely increase the value of that holding substantially, boosting his net worth into the trillions. That level of ownership will allow Musk to effectively determine the outcome of shareholder votes, including the election of most SpaceX board members. The filing notes that SpaceX will qualify as a "controlled company" under Nasdaq corporate governance rules and that it intends to rely on exemptions from certain governance requirements available to firms dominated by a single shareholder. The company reported a $2.6 billion operating loss in 2025 on $18.7 billion in revenue, according to the filing. Losses have continued into 2026 as SpaceX pours billions into developing its Starship rocket program, satellite infrastructure, and other long-term projects. Investors are nevertheless betting that the company can capitalize on its dominant position in commercial launches and the rapid growth of its Starlink satellite internet business. Goldman Sachs is leading the offering, with Morgan Stanley, Bank of America, Citigroup, and JPMorgan Chase serving as additional underwriters. 60 MINUTES HOST SCOTT PELLEY FIRED AFTER ACCUSING CBS CHIEF OF 'MURDERING' SHOW When Musk founded SpaceX in 2002, the company focused on building rockets and launching payloads into space. It later expanded into telecommunications with its Starlink satellite internet service and, earlier this year, merged with Musk's artificial intelligence company xAI, which includes the social media platform X. While SpaceX dominates the commercial launch industry, the company's AI assets are increasingly seen as a major part of its valuation. The IPO comes amid a wave of investor enthusiasm for artificial intelligence, with Anthropic also planning to go public and OpenAI expected to follow.
SpaceX's IPO is set to be the biggest ever and could make Elon Musk a trillionaire
NEW YORK -- SpaceX says it plans to raise up to $75 billion when it goes public this month, setting the stage for the largest-ever stock market debut and putting Elon Musk on course to becoming the world's first trillionaire. The company, formally known as Space Exploration Technologies Corp., said Wednesday it will sell 555.6 million shares at $135 a piece in an initial public offering. The estimated proceeds would easily top the $26 billion raised by oil giant Saudi Aramco in 2019. The offering would also give SpaceX a market value of $1.77 trillion. Only six companies in the S&P 500 are currently worth more, with Nvidia tops at $5.2 trillion. Besides the size of the offering and the expected proceeds, SpaceX's amended prospectus updates details about how much control of the company Musk will have. As SpaceX's CEO, chief technical officer and chairman, Musk's voting power will come primarily through his ownership of 5.22 billion Class B shares, which give the holder 10 votes for every share held. According to the filing, Musk would have 82.4% of the voting power in the company. Forbes currently values Musk's net worth at $826 billion and his stake in SpaceX at $542 billion. The estimated value of his SpaceX holdings was based on an overall value for the company of $1.25 trillion. Based on those numbers, a $1.77 trillion valuation for SpaceX would boost Musk's net worth by $223 billion, making him a trillionaire. However, much of Musk's worth is in stock that he has yet to cash in. Even as it makes a bid for a blockbuster market debut, SpaceX is currently losing billions of dollars a year. The filing shows that the company lost $2.6 billion from operations last year on $18.7 billion in revenue, and the losses kept piling up at the start of this year, too. Fantastical plans Time will tell how SpaceX fares on the market. Musk's plans for the company are as fantastical as the money he hopes raise in the sale. Colorful, even frightening in parts, the IPO document strikes a contrast with the typically dry, technical prose in IPO documents, detailing plans to use proceeds from the sale to help put men on the moon again and perhaps even Mars. In one section, it talks of a need to build "a permanent human colony" on the red planet with "at least one million inhabitants" as existential threats loom that could consign man to "the same fate as the dinosaurs." Musk has almost equally ambitious plans for his other publicly traded company, Tesla. His goal is to transform the maker of electric vehicles into a producer of robotaxis and humanoid robots. Dan Ives of Wedbush Securities wrote in a research note that he expects Tesla and SpaceX to merge next year. AI plays a key role Key to the success of both companies -- and any merged entity -- is artificial intelligence. In its IPO filing, SpaceX says it sees potential revenue from AI of up to $26.5 trillion. But that depends on another lofty Musk ambition -- putting data centers in space, which is not technologically possible at the moment. Transforming his space company into a primarily AI-focused company will be a challenge for Musk, who started xAI in 2023 with 11 other co-founders who have all since left. Some were recruited away by rivals. Its main AI product, the chatbot Grok, is "less impressive than anything that we see from any other major player in the space, whether that's OpenAI, or Anthropic, or (Google's) Gemini," said IDC analyst Arnal Dayaratna. Dayaratna said that doesn't mean SpaceX doesn't have potential as a major AI player, thanks in part to its computing partnership with Anthropic and Musk's recent deal that gave SpaceX the rights to buy AI coding tool Cursor for $60 billion later this year. Folding in Cursor's capabilities would give SpaceX access to the coveted business customers now using Anthropic's Claude or OpenAI's ChatGPT. SpaceX plans to use the net proceeds from the IPO to fund the expansion of infrastructure for its AI and rocket businesses, and to beef up the constellation of satellites that power Starlink Mobile, among other investments. The company plans to list on the Nasdaq under the symbol "SPCX" and could begin trading as soon as the end of next week. And SpaceX isn't the only colossal market debut investors are now bracing for. Earlier this week, Anthropic submitted a confidential filing with the U.S. Securities and Exchange Commission to officially start its own IPO clock. OpenAI has not yet reported filing the initial SEC paperwork, but an IPO from the ChatGPT maker is widely expected. "This listing represents the first major test for public markets after years of muted IPO activity with SpaceX paving the way for AI giants Anthropic and OpenAI to follow soon after," Ives wrote.
SpaceX fixes issue price for mega $75 billion IPO; details here - CNBC TV18
The company, officially named Space Exploration Technologies Corp., is targeting a Nasdaq listing on June 12 under the ticker symbol SPCX. Elon Musk-led SpaceX is preparing for what could become the largest initial public offering (IPO) in history, after setting an IPO price of $135 per share and outlining plans to raise as much as $75 billion through its market debut later this month. According to a filing submitted to the US Securities and Exchange Commission (SEC) on Wednesday, the company will offer 555.6 million shares, while underwriters have the option to purchase an additional 83.33 million shares. If fully exercised, the offering could generate approximately $11.2 billion in proceeds. At the proposed price, SpaceX would command a market capitalisation of roughly $1.77 trillion, placing it among the most valuable publicly traded companies in the US. The valuation would exceed that of Tesla, which is currently worth about $1.6 trillion, and rank SpaceX as the country's seventh-largest listed company by market value. The company, officially named Space Exploration Technologies Corp., is targeting a Nasdaq listing on June 12 under the ticker symbol SPCX. The valuation surge would boost Musk's personal wealth. Forbes currently estimates his fortune at $826 billion, including a SpaceX stake valued at $542 billion based on an earlier company valuation of $1.25 trillion. A jump to a $1.77 trillion valuation would add an estimated $223 billion to Musk's net worth, potentially making him the first person to surpass the $1 trillion mark in wealth. Following the IPO, Musk is expected to retain more than 82% of the company's voting power. The proposed fundraising would comfortably eclipse the record $26 billion IPO completed by Saudi Aramco in 2019. It would also surpass Alibaba's listing, currently the largest IPO ever completed in the US market. Despite investor enthusiasm surrounding SpaceX's growth prospects, the company remains deeply unprofitable. Regulatory filings show it reported an operating loss of $2.6 billion last year despite generating $18.7 billion in revenue. Losses have continued into the current year as the company expands its operations. SpaceX intends to deploy IPO proceeds toward scaling its artificial intelligence and space businesses, expanding infrastructure, and strengthening the satellite network supporting its Starlink Mobile service. Goldman Sachs is leading the offering, with Morgan Stanley, Bank of America, Citigroup and JPMorgan Chase serving as additional underwriters. Unlike most IPO candidates that initially provide a pricing range to gauge investor demand, SpaceX opted to announce a fixed share price following a series of investor meetings conducted ahead of the formal roadshow. The company said that the $1.77 trillion valuation assumes completion of the EchoStar spectrum and Cursor transactions. The latest filing also highlighted growing links among Musk's businesses. SpaceX disclosed that its AI unit, xAI, purchased $269 million worth of Tesla Megapack battery systems in April. Tesla had previously reported selling $430 million worth of Megapacks to xAI during the previous year. Musk combined SpaceX and xAI earlier this year in a transaction valuing the merged entity at $1.25 trillion. Cross-ownership remains significant among the group companies, with Tesla holding 18.99 million SpaceX shares, a stake valued at roughly $2.56 billion based on the IPO price. In the filing, SpaceX said it has historically worked with Tesla through a range of commercial, licensing and support agreements. The company first unveiled its IPO plans in a prospectus filed late last month, which revealed both its substantial losses and Musk's dominant ownership position. An amended filing submitted this week showed that up to 5% of the shares offered in the IPO could be reserved for selected employees and other eligible participants through a direct share programme. The listing comes amid increasing competition among AI-focused companies seeking access to public markets. AI startup Anthropic confidentially filed for an IPO earlier this week, while OpenAI is reportedly preparing its own filing in the near future.
