SpaceX targets $2 trillion valuation ahead of what could be largest IPO in history

SpaceX has raised its target valuation to more than $2 trillion ahead of a planned initial public offering, positioning the Elon Musk-led company for what could become the largest market debut in history, Bloomberg News reported Friday, citing people familiar with the matter. The rocket, satellite and artificial intelligence company and its advisers are presenting the valuation target to prospective investors ahead of meetings expected in the coming weeks as part of "testing-the-waters" discussions.

Valuation surge

If achieved, the valuation would mark a sharp increase of nearly two-thirds in a matter of months. SpaceX's acquisition of Musk's xAI in February valued the combined company at $1.25 trillion. At more than $2 trillion, SpaceX would rank among the world's most valuable publicly traded companies, exceeding Meta and Tesla and trailing only Nvidia, Apple, Alphabet, Microsoft and Amazon in the S&P 500.

IPO size

The IPO could raise as much as $75 billion, according to Bloomberg, far surpassing Saudi Aramco's $29 billion listing in 2019, currently the largest on record. Bloomberg previously reported that SpaceX had confidentially filed for an IPO that could take place in June, initially targeting a valuation of more than $1.75 trillion.

Use of proceeds

Proceeds are expected to fund Musk's capital-intensive plans, including space-based artificial intelligence data centers and a factory on the moon. Musk also said in March that his Terafab project, aimed at producing chips for robotics, artificial intelligence and space-based data centers, would eventually be jointly operated by Tesla and SpaceX.

Competitive landscape

The listing could be among a wave of major offerings, including potential debuts by OpenAI and Anthropic, rivals to xAI's chatbot Grok. SpaceX's dominance in satellite launch and Starlink internet services, combined with its AI ambitions through xAI, has driven investor enthusiasm.