SpaceX is preparing for a potentially record-breaking initial public offering, confidentially filing paperwork with the Securities and Exchange Commission for a sale that could value the company at $1.75 trillion, according to multiple sources familiar with the registration. The offering, internally dubbed “Project Apex,” aims to raise as much as $75 billion and would surpass Saudi Aramco’s $29 billion IPO in 2019 as the largest in history. A successful listing would also likely make Elon Musk the world’s first trillionaire, significantly expanding his already substantial wealth.
The planned IPO arrives at a complex moment for the aerospace and technology conglomerate. SpaceX is no longer solely focused on space launch and exploration. Recent moves, including the absorption of Musk’s artificial intelligence company xAI and the integration of his social media platform X (formerly Twitter), have transformed the company into a multifaceted entity with interests spanning orbital launches, satellite internet, defense contracts, artificial intelligence, and social media. This expansion, coupled with Musk’s close ties to political figures, is raising scrutiny regarding potential conflicts of interest.
The financial engine driving this valuation is Starlink, SpaceX’s satellite internet service. In 2025, Starlink generated $10.6 billion in revenue with a 54% EBITDA margin, accounting for roughly two-thirds of SpaceX’s total $16 billion revenue, according to company data. The service has rapidly grown to over 10 million paying customers across 150 countries since its 2021 beta launch. A January 2026 FAA approval allowing up to 44 annual Starship launches has further bolstered investor confidence.
A Conglomerate Under Scrutiny
The merger of SpaceX and xAI in February, valued at $1.25 trillion, has drawn criticism regarding governance and valuation. Reports suggest xAI was burning through approximately $1 billion per month, and the merger effectively allows Starlink’s substantial cash flow to absorb those losses. Adding to the complexity, all 11 of xAI’s original co-founders have since departed the company, including prominent researchers like Jimmy Ba, a co-author of the widely cited Adam optimization paper in artificial intelligence, who left in February. Musk himself acknowledged in March that xAI “was not built right the first time around” and required a complete rebuild.
The addition of X, the social media platform formerly known as Twitter, further complicates the picture. This consolidation places immense power and financial control in the hands of a single individual, Elon Musk, who also maintains significant political influence. Musk was the largest individual donor to Donald Trump’s 2024 presidential campaign and briefly led the Department of Government Efficiency (DOGE), a temporary body tasked with identifying wasteful federal spending. Ethics observers have noted that DOGE’s cancellations did not impact any of Musk’s companies.
Government Contracts and Political Connections
SpaceX’s reliance on government contracts is a central point of concern. According to USAspending.gov, the company has secured over $6 billion in contracts from NASA, the Department of Defense, and other federal agencies in the past five years. SpaceX is currently NASA’s primary provider for crewed missions to the International Space Station and holds more than $4 billion in contracts for the Artemis lunar-landing program. The Pentagon is reportedly preparing to award SpaceX a $2 billion contract to develop a 600-satellite constellation for missile tracking, part of the Golden Dome missile-defense initiative, a program initially estimated to cost $175 billion.
Further fueling concerns about potential conflicts of interest, Donald Trump Jr. Holds shares in SpaceX and xAI through his venture firm, 1789 Capital, which has invested approximately $50 million in the companies. 1789 Capital has also backed at least four other companies that have subsequently received government contracts during the current administration. The White House has consistently denied any conflicts of interest related to the Trump family’s business activities.
Governance Risks and Investor Considerations
SpaceX’s transition from a private company to a publicly traded entity will necessitate increased transparency and accountability. The company will be required to file quarterly earnings reports, disclose executive compensation, and open its books to auditors, potentially exposing it to shareholder lawsuits similar to those Tesla currently faces. Tesla shareholders are currently suing Musk over a $2 billion investment in xAI, alleging he misused shareholder capital for his personal venture. The SpaceX-xAI merger presents a similar structure of self-dealing that regulators and public market investors will likely scrutinize closely.
Notably, the planned IPO intends to allocate up to 30% of shares to retail investors, significantly higher than the typical 5-10% range. This move, reminiscent of Google’s unconventional 2004 IPO, could be a strategy to cultivate a loyal shareholder base less inclined to challenge management decisions, particularly given Musk’s strong online following.
The Broader Implications for Tech IPOs
SpaceX’s listing could pave the way for IPOs from other leading AI and deep tech companies, including OpenAI and Anthropic, both of which are reportedly considering going public. Together, these three companies represent a concentration of market value in sectors critical to national security, global communications, and economic infrastructure. The success of Project Apex will serve as a crucial test case for the increasing trend of governments outsourcing critical capabilities to the private sector.
The scale of SpaceX’s ambitions is unprecedented. A $75 billion raise would exceed the gross domestic product of many nations, and a $1.75 trillion valuation would position SpaceX among the most valuable companies globally, trailing only Apple, Microsoft, Nvidia, Amazon, and Alphabet. The company’s future hinges on navigating the complexities of public markets while addressing legitimate concerns about concentrated power, government dependency, and potential conflicts of interest.
The next key milestone will be the filing of SpaceX’s S-1 registration statement with the SEC, which will provide a more detailed look at the company’s financials, governance structure, and risk factors. Investors and regulators will be closely examining this document in the coming weeks.
What are your thoughts on SpaceX’s potential IPO? Share your comments below and let us know how you think this will impact the future of space exploration and technology.
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