SpaceX is finally launching into the markets.
But it might not be the SpaceX that you recognised from a few years ago.
It is now a combination of several business units under one umbrella.
And that might be a good thing for a company that is taking huge bets.
SpaceX is led by Elon Musk, a controversial figure in today’s business world, but he is probably the only one who can lead SpaceX at this point.
Here are 7 things to know about SpaceX’s IPO.
✦ MAIN SECTION ✦
1. What the Company is About?
SpaceX is best understood as a space rocket and communication satellite company, with AI software and computing power. Generally, it is divided into three main business segments:
Space: It launches rockets that transport products to space. Currently, most of its rockets which includes Falcon are utilised to transport Starlink satellites to space. Outside of this, it also transports humans and cargo for its commercial and government clients to space stations.
Connectivity: Internet from space is an accurate description. Its connectivity segment provides Starlink internet services from space satellites to its clients on earth.
AI: This is xAI. Elon Musk reorganised the AI company into SpaceX and includes Grok, its foundational AI model, and also AI compute clusters for its clients to use. It is collaborating with Intel in its chip arm, Terrafab to design AI chips. It also has the X (formerly Twitter) social media platform.
At the current stage, its Starlink connectivity business makes up the biggest contributor to revenue at 61% in 2025. This is followed by its space (22%) and AI (17%).
What does this tell us?
There are some synergies for the different business segments here.
Firstly, the most straightforward synergy is between its space and connectivity segments. SpaceX is currently launching its Falcon rockets to deploy most of its internet satellites.
Furthermore, it is also investing in its next-generation rocket, Starship that could deploy more satellites and orbital AI compute cluster.
Here’s where the second synergy comes in.
SpaceX is aiming to launch data centres into space. Its AI compute clusters will benefit from theoretically cheaper cost structure in space as they use ‘free energy’ from the sun around the clock.
Recently, it has announced a collaboration with Alphabet to do exactly this.
2. What are the Details of its IPO?
In a nutshell, SpaceX will be looking to raise as much as US$80 billion to fund its ‘growth strategies’. There isn’t any specific breakdown for how they will be used. This listing puts SpaceX at an implied valuation of US$1.75 trillion.
SpaceX wants to
Expand its AI compute infrastructure
Enhance its launch infrastructure and vehicles
Increase scale and capacity of its internet satellites.
Use for general corporate purposes (working capital)
Let’s have a deeper look into SpaceX’s strategy
In its space segment, its strategy is simple. Transport more weight into space through better rockets and vehicles that are reusable.
Its next-generation rocket, Starship will push the envelope further by aiming to transport 100 metric tonnes against the current load of 13 metric tonnes from its Falcon rockets.
At the moment, it claims that it is the only company that can ‘reuse’ the rocket booster for another launch. SpaceX is looking to improve on this technology by also utilising its ‘chopstick’ arms, allowing for multiple launches per day.
This enables it to cut its cost of production per rocket drastically, and make it commercially viable in the future.
SpaceX is targeting to roll out its Starship rocket by 2H 2026.
By having higher loads into space, SpaceX is targeting to do two things
Launch more internet satellites
Launch more AI data compute clusters
Starlink remains its core business in the next few years. And it intends to expand into non-U.S. markets.
There is still a wide market where many remote areas do not have access to traditional broadband internet services. For some companies and government bodies, having emergency and back-up internet services could reduce downtime.
Meanwhile, SpaceX are both aiming to scale up its AI compute clusters on Earth and in space. It views this market as being the top priority to expand into as the demand for computing power is booming leading to a severe supply shortage in the near future.
3. How is its Financial Performance?
What’s essential for SpaceX at this juncture is rapid revenue growth to capture market share. And it has done that to some degree in the last 3 years.
Revenue has almost doubled from US$10.3 billion in 2023 to US$18.8 billion in 2025, driven mainly by its connectivity segment.
Connectivity revenue tripled from US$3.9 billion in 2023 to US$11.9 billion in 2025, driven by higher Starlink subscribers.
Meanwhile, both of its space and AI segments grew at slightly lower but strong rates of 15% and 8%.
Let’s be clear here.
SpaceX is loss-making currently. It registered a net loss of US$4.9 billion in 2025, and has so far, incurred a total loss of US$41 billion since inception as of 1Q 2026
For the foreseeable future, SpaceX intends to make even higher losses as it invests heavily into its AI segment. It is capitalising research and developments costs into its profit and loss statement. In just 2 years, SpaceX has scaled up its capital expenditures by 5 times to US$20.7 billion in 2025.
Source: SpaceX Prospectus
So, is SpaceX operationally profitable?
If we look at its operational cash flows, SpaceX is indeed profitable. Net cash provided by operating activities has increased by 22.5% annually from US$4.5 billion in 2023 to US$6.8 billion in 2025.
Source: SpaceX Prospectus
Once again, the Starlink connectivity segment is the most profitable one, generating US$7.2 billion in EBITDA.
Source: SpaceX Prospectus