SpaceX Targets $1.75T Valuation in Record IPO

SpaceX is targeting a record-breaking valuation of nearly $1.75 trillion for its upcoming initial public offering (IPO), which could make it the largest IPO in history. The company is seeking to raise approximately $75 billion, according to multiple reports.

The rocket and satellite maker has secured an option to acquire AI startup Cursor for $60 billion later this year or form a partnership worth $10 billion. SpaceX highlighted the potential of combining Cursor's leading product with its Colossus training supercomputer, touted as the largest in the world. This combination is expected to allow for building 'the world’s most useful models.'

SpaceX's announcement comes amid a series of strategic moves ahead of its IPO. The company hosted analysts for three days of closed-door meetings at its launch facility in Texas and mega-sized data center in Tennessee, kicking off with an all-day meeting and analyst tour on Tuesday at the satellite and rocket maker's Starbase launch facilities in Boca Chica.

As reported by Reuters Breakingviews, SpaceX aims to be worth $1.75 trillion when it sells shares to public investors. However, the company's revenue exceeded $18 billion last year while making a net loss of $5 billion, according to The Information. Additionally, Cursor is in talks to raise a $2 billion funding round at a valuation of over $50 billion, with Andreessen Horowitz set to co-lead the new investment round.

The rocket and satellite company disclosed plans that would entrench permanent voting control for founder Elon Musk as part of its IPO preparations. SpaceX is targeting a late-June market debut, even as excerpts from its confidential IPO filing show the company swung to a multi-billion-dollar loss in 2025, driven by heavy spending on artificial intelligence.

Inquiries into sexually abusive AI imagery created by xAI may lead SpaceX to lose access to certain markets. According to Reuters, multiple agencies worldwide are investigating the use of AI in relation to advertising, consumer protection, and the distribution of harmful content. The company warned that such regulatory inquiries could expose it to lawsuits, liability, and government action.

SpaceX's satellite broadband business, Starlink, doubled its operating income last year to $4.42 billion, easily covering the loss incurred in its space division. However, the AI division accounted for 61% of the company's total capital spending in 2025, pushing it to an operating loss of $6.4 billion. SpaceX's capital spending more than doubled last year, exceeding revenue by roughly $2 billion.

The financial implications of the deal with Cursor add more uncertainty. If SpaceX opts for the smaller collaboration payment, it will likely lose access to Cursor's lucrative customer roster but the financial impact would shave months rather than years off its cash runway. The structure allows SpaceX to delay a decision until after its IPO, but the financial implications are stark.