The space exploration company is preparing for what could become the biggest initial public offering in history, seeking a staggering $1.75 trillion valuation that would place it among the globe’s most valuable corporations.
While the company markets itself as humanity’s gateway to Mars exploration, its financial records paint a picture of an organization whose heavy investments in artificial intelligence computing power and new rocket technology have exceeded the revenue generated by its profitable Starlink satellite internet operations.
The company’s revenue climbed 33% to reach $18.67 billion in the previous year, with Starlink contributing approximately 60% of total sales through its network of roughly 10.3 million subscribers served by 9,600 satellites orbiting Earth.
However, the acquisition and integration of the money-losing xAI division resulted in a net loss of $4.94 billion last year, a sharp reversal from the $791 million profit recorded in 2024, when rapid Starlink expansion and reusable rocket launch services drove strong earnings.
The company has dramatically expanded its launch operations from a single mission in 2006 to conducting more than two launches weekly, significantly outperforming competitors and establishing itself as the preferred launch provider for NASA and Pentagon missions.
The workhorse Falcon 9 reusable rocket has enabled this launch frequency increase, while the larger Starship vehicle under development aims to transport crew and cargo on a scale never before achieved.
The Falcon Heavy configuration combines three Falcon 9 boosters to create one of the world’s most powerful operational rockets, capable of delivering 64 metric tons to low-Earth orbit and currently used for launching heavy military satellites and deep space missions.
Company leadership identifies artificial intelligence as their largest potential market opportunity. The February acquisition of xAI merged two major components of the business empire, though xAI lags behind competitors Anthropic and OpenAI by several metrics.
Recent analysis by finance startup Ramp revealed that over 30% of business customers were purchasing AI services from Anthropic and OpenAI in April, with the Claude Code developer surpassing OpenAI for the first time, while xAI maintained approximately 5% market adoption.
This data, derived from Ramp’s examination of spending patterns among roughly 50,000 customers, represents only a fraction of enterprise AI expenditure, a sector where Anthropic is considered the market leader.
IPO investors face a premium valuation that exceeds multiples commanded by leading technology companies. At $135 per share, the company would trade at approximately 94 times trailing sales — higher than Nvidia, Amazon and Meta, and comparable to specialized space companies Planet Labs and Rocket Lab, which trade at 50.4 and 115.4 times sales respectively, despite being newer enterprises.
Given last year’s losses, traditional price-to-earnings comparisons cannot be applied.
The premium valuation depends partially on Starship’s potential, designed for full reusability while carrying over 100 metric tons to low-Earth orbit, exceeding any currently operational rocket’s capacity. This capability would be essential not only for launch services but also for plans to deploy AI data centers in space.
Existing rockets, the Falcon 9 and Falcon Heavy, can transport approximately 22.8 metric tons and 63.8 metric tons to low-Earth orbit respectively.
Starship’s May test flight achieved a significant milestone before the public offering, successfully deploying simulated satellites and completing a controlled splashdown in the Indian Ocean despite minor engine complications.
