WASHINGTON: SpaceX, the rockets-to-AI behemoth led by Elon Musk, aims to raise USD75 billion in the biggest initial share sale ever, as the world’s richest person pursues data centers in space and a trip to Mars.
SpaceX said in a regulatory filing Wednesday that it would offer exactly 555,555,555 shares — Musk has shown a penchant for idiosyncratic numbers in his businesses — at USD135 each.
That would value the company at a whopping USD1.8 trillion.
Analysts say Musk is aiming to capitalize on investor enthusiasm for his satellite internet plans as well as artificial intelligence, after he folded his xAI and its Grok chatbot into SpaceX earlier this year.
His plan is to use SpaceX’s rockets to launch solar-powered, satellite-based data centers to develop and run future AI models.
And last month, SpaceX announced plans to invest USD55 billion to build a “Terafab” semiconductor factory in Texas, producing chips for artificial intelligence as well as robotics.
“The AI trade continues to roar, just in time for SpaceX’s IPO next week,” said Kathleen Brooks, research director at the brokerage firm XTB in London.
The sale could also make Musk, already the world’s richest man, the world’s first trillionaire.
Analysts expect further consolidation of Musk’s business empire in 2027, when SpaceX, already the owner of X (formerly Twitter), is likely to merge with his electric car company Tesla, which is increasingly focused on robotics, energy and autonomous transportation.
In 2020, SpaceX activated its StarLink broadband operations, shaking up the satellite internet business with fast and relatively affordable access. It now has around 10.3 million subscribers across 164 markets, the company says.
Among the many users have been Ukrainian troops battling against Russia’s invasion, and Iranian anti-government protesters.
That business has proven to be a key source of cash for the capital-intensive company, which reported a loss USD4.9 billion on revenues of nearly USD19 billion last year.
“On any normal metric the numbers defy belief” for justifying the potential valuation set by Musk, noted Michael Hewson, senior market analyst at iForex.
“Any investor will be basically betting on the success or otherwise of not only its Starship launch program, but also Elon Musk’s ability to deliver on the orbital data centre part of the business, as a stepping stone to the Moon and Mars,” he said in a research note.
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