SpaceX’s upcoming IPO is expected to raise $80 billion, but 78% of that capital is already committed to third parties, according to its S-1 filing released on May 20th, fortune.com reported. The company’s CEO Elon Musk is betting heavily on growth in artificial intelligence, which now accounts for the majority of SpaceX’s total addressable market.
The S-1 reveals that SpaceX has shifted its focus from its traditional satellite broadband and rocket businesses to AI, following its merger with Musk-controlled xAI in February. This pivot positions SpaceX as a hyperscaler aiming to rapidly expand its computing capacity. The company plans to build massive data centers like Colossus I and II in Memphis, which span two million square feet. The AI segment has consumed over $20 billion in capital expenditures over the past five quarters, underscoring the scale of investment required.
This move marks a significant transformation for SpaceX, expanding its market opportunity to $28.5 trillion, with $26.5 trillion attributed to AI alone. The IPO’s size and the capital already pledged highlight the high stakes involved in Musk’s vision of integrating space, connectivity, and AI. The scale of the offering could set records, but the pre-commitments may limit availability for new investors.
SpaceX plans to use the fresh capital to fund its AI infrastructure and growth initiatives, including the completion of its large data centers. Market participants will be watching closely for the IPO’s pricing and allocation details, which will reveal how much capital remains accessible to public investors beyond the pre-committed funds.