SpaceX’s valuation target rises to more than $2 trillion, second only to the five largest tech giants

According to people familiar with the matter, SpaceX, Musk’s company, has raised its targeted IPO valuation to more than $2 trillion. Compared with the combined valuation of $1.25 trillion disclosed after the xAI acquisition in February, it has surged by nearly two-thirds within just a few months. If it successfully goes public at this valuation, SpaceX’s market capitalization would exceed every company in the S&P 500 except for those that directly outrank Meta Platforms and Tesla, placing it among the global top six by market value.

Valuation surges fast: the business logic supporting the jump from $1.25 trillion to more than $2 trillion

SpaceX’s valuation has climbed rapidly over a few months, supported by specific business fundamentals. In its latest report, Bloomberg Industry Research analysts George Ferguson and Wayne Sanders explicitly point out that SpaceX holds a leading position in the launch and near-Earth communications/broadband segments, maintaining a clear gap versus competitors.

The two analysts’ revenue forecasts show that Launch and Starlink are the main revenue sources for SpaceX, with total combined revenue expected to approach $20 billion in 2026; xAI’s revenue could be less than $1 billion. This structure means that a $2 trillion valuation is primarily built on long-term growth expectations for SpaceX’s traditional business and the future upside imagination for its space AI business.

IPO size: how a $75 billion deal could rewrite global capital market records

If SpaceX were to go public successfully at a size of $75 billion, it would completely refresh the global IPO history record. Here are key market-positioning comparisons:

Saudi Aramco: The world’s largest IPO in 2019, raising $29 billion—SpaceX’s $75 billion target is more than twice that

NVIDIA, Apple, Alphabet, Microsoft, Amazon: After SpaceX’s valuation exceeds $2 trillion, it would rank sixth after these five

Meta Platforms: Current market cap is about $1.5 trillion—SpaceX’s valuation would directly surpass it

Tesla: Another publicly listed company under Musk; current market cap is about $1 trillion—would be surpassed as well

OpenAI and Anthropic: People familiar with the matter say the SpaceX IPO may be the first in a wave of listings by the three major tech startups, with the other two following closely behind

The banking roster supporting the IPO includes Bank of America, Citigroup, Goldman Sachs, JPMorgan, and Morgan Stanley, with additional banks joining the consortium.

Use of funds: lunar factories, space AI data centers, and the Terafab plan

SpaceX plans to use the $75 billion raised through its IPO to realize Musk’s most ambitious technological vision: building AI data centers in space and constructing manufacturing factories on the Moon.

In March, Musk said its Terafab plan would ultimately be co-operated by Tesla and SpaceX, with the goal of producing chips for robotics, AI systems, and space data centers—deeply integrating SpaceX’s space infrastructure with Tesla’s manufacturing capability. SpaceX plans to hold investor and analyst briefings in April; people familiar with the matter emphasized that the discussions are still ongoing, and the specific issuance details may still change.

Frequently asked questions

Why did SpaceX’s valuation jump from $1.25 trillion to more than $2 trillion within a few months?

The rapid rise in valuation reflects the AI business synergy effects brought by the xAI acquisition, Starlink’s continued growth in subscribers, and the market scarcity premium enjoyed by SpaceX as the only company with commercially scaled, reusable rocket capabilities. Pre-IPO valuations also typically include expectations of an IPO premium, and the $75 billion fundraising target itself also represents positive confirmation of the market’s view of its business value.

What exactly would SpaceX’s $2 trillion valuation mean in terms of its positioning among global listed companies?

If it successfully lists at more than $2 trillion, SpaceX’s market cap would exceed all publicly listed companies in the S&P 500 except for NVIDIA, Apple, Alphabet, Microsoft, and Amazon, placing it among the global top six and directly surpassing Meta Platforms and Tesla, the two members of the “Seven Giants.”

How exactly will the $75 billion raised by the SpaceX IPO be deployed?

According to people familiar with the matter, the funds will mainly be used for building space AI data centers, lunar manufacturing factories, and advancing the Terafab chip production plan (chips needed for Tesla and robotics/AI to be produced jointly). These initiatives require unprecedented capital investment, which also explains why SpaceX chose to raise the necessary funds through a one-time IPO of an extremely large $75 billion.