<div id="readability-page-1"><p>Elon Musk's aerospace giant, SpaceX, is preparing for what could be the largest IPO in history, with reported valuation targets ranging from about $1.5 trillion to $2 trillion. The investment case is no longer just about reusable rockets and Starlink. It now includes AI infrastructure, xAI, data centers, and a possible software catalyst through the Cursor deal. Importantly, the IPO filing showed $18.7 billion of revenue in 2025 and a $4.94 billion net loss, which means that although SpaceX has massive growth potential, investors are being asked to pay a huge premium before several expensive bets fully mature.</p><h3>Meet Samuel – Your Personal Investing Prophet</h3><p><span>Looking for exposure to SpaceX &amp; Anthropic? </span>Check out AGIX ETF</p> <h2><strong>Starlink Remains the Cleanest Business</strong></h2> <p>Interestingly, Starlink remains the cleanest business today. SpaceX's connectivity segment generated about $11.4 billion in sales in 2025 and provides the firm with recurring revenue. That is very different from the launch business, which is more tied to contracts, missions, and Starship development timelines. Still, Starlink also gives SpaceX a strategic base for future services, including consumer internet, enterprise connectivity, defense communications, and eventually AI-related infrastructure.</p> <p>The launch business is also important to the story because SpaceX has already become the dominant private launch provider. Reusable rockets give the company a cost and scale advantage, while Starship remains the major long-term opportunity. Indeed, if Starship works as planned, it could lower launch costs, support larger Starlink deployments, help NASA's moon plans, and eventually make space-based infrastructure more realistic. That said, Starship is still expensive and technically difficult to execute, which is one reason why the company continues to show large losses.</p> <h2><strong>SpaceX AI Data Centers: Anthropic Deal Could Change the Revenue Story</strong></h2> <p>However, the biggest new catalyst is SpaceX's AI compute business. The company recently disclosed that Anthropic will pay about $1.25 billion per month, or roughly $15 billion per year, for access to SpaceX's Colossus data centers through May 2029. That contract could materially increase SpaceX's revenue base if it continues as planned, although the deal includes ramp-up details and a 90-day termination clause. This matters because AI companies are desperate for compute, and traditional data center buildouts are often slowed down by land, power, chips, cooling, and construction delays. </p> <p>Furthermore, SpaceX appears to be positioning itself as a company that can build large-scale compute capacity faster than many traditional operators. If that advantage proves to be real, Anthropic may not be the only customer. SpaceX could eventually rent data center capacity to other AI labs and enterprises that need compute power quickly. That would dramatically change how investors think about the company, as SpaceX would not just be an aerospace company with a satellite internet business.</p> <p>Instead, it would also become an AI infrastructure landlord that rents scarce compute capacity to companies that cannot build fast enough on their own. In that case, the AI segment could become a major growth driver, but it would also require heavy capital spending and strong execution. The early numbers show both sides of that opportunity. SpaceX's AI segment reportedly generated $3.2 billion of revenue in 2025 but also produced a $6.4 billion operating loss, which shows just how expensive it is to build AI infrastructure. So while AI compute could justify a higher valuation, it also increases the risk that SpaceX burns significant amounts of cash before margins improve.</p> <h2><strong>SpaceX and Cursor Deal Could Be a Software Catalyst</strong></h2> <p>In addition, the possible Cursor deal adds another layer to the investment case. SpaceX reportedly has a massive option to acquire Cursor, the AI programming assistant, in an all-stock transaction that could be worth about $60 billion. If Cursor's recurring revenue base is integrated into SpaceX's AI segment, it could make the company's revenue mix look more attractive. </p> <p>Software revenue is usually valued at higher multiples than launch contracts or hardware-heavy infrastructure because it can scale with better margins once the product is mature. So the Cursor deal could help investors view SpaceX as a more general AI company rather than just a rocket and satellite operator. The deal may also improve xAI's developer strategy, as Cursor's real-world coding data and developer workflow insights could be valuable for improving xAI's coding products, including Grok Build.</p> <h2><strong>Grok Build for Professional Software Engineering</strong></h2> <p>For context, xAI recently launched Grok Build, an AI coding agent that is currently in early beta for SuperGrok Heavy subscribers. The tool runs from the terminal and is designed for professional software engineering and complex coding work. Its official product page highlights features like plan mode, clean diffs, plugins, hooks, MCP servers, AGENTS.md support, skills, and parallel subagents.</p> <p>This is important because coding agents are becoming one of the most valuable AI use cases. If SpaceX and xAI can combine large-scale compute, developer data, and coding-agent products, they may be able to build a more defensible AI software business. </p> <p>Still, this part of the story is early. Grok Build is competing against stronger and more established developer tools from OpenAI, Anthropic, and others. So while the product may have interesting features, especially its terminal-first workflow and subagent structure, SpaceX still needs to prove that developers will adopt it at scale.</p> <h2><strong>SpaceX's Valuation Is Expensive, but It's Not a Normal Aerospace Stock</strong></h2> <p>Nonetheless, despite all the exciting ventures that SpaceX is involved in, the valuation remains the hardest part of the SpaceX IPO. At a $1.75 trillion valuation, SpaceX would trade at roughly 94 times 2025 sales. If investors add the full $15 billion annual Anthropic revenue to the 2025 base, the forward price-to-sales multiple falls to about 52 times. At a $2 trillion valuation, those figures would be roughly 107 times 2025 sales or about 59 times that simple forward revenue base.</p> <p>That is extremely expensive, especially for a company with large GAAP losses and major capital needs. However, bulls would argue that SpaceX should not be valued like a traditional aerospace contractor. In fact, it has a dominant launch share, Starlink's recurring revenue, AI compute contracts, possible software exposure through Cursor, and long-term space infrastructure ambitions.</p> <p>Meanwhile, the bear case is that too many things need to work at once. Starship must scale, Starlink must keep growing, AI compute margins need to improve, and the software strategy has to prove itself against some of the best AI companies in the world. Therefore, although SpaceX may deserve a rare valuation because it is a rare asset, investors would still be paying today for years of perfect execution across its rockets, satellites, AI data centers, and software businesses.</p> <h2><strong>What Is the Prediction for TSLA Stock?</strong></h2> <p>When it comes to Elon Musk's companies, most of them are privately held. As a result, until SpaceX goes public, retail investors can invest in his most popular company, Tesla. Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 12 Buys, 12 Holds, and five Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $403.86 per share implies 5.2% downside risk.</p></div>

SpaceX

<p>SpaceX is gearing up for a potentially historic IPO, with valuations between $1.5 trillion and $2 trillion. The investment case now includes AI infrastructure and a significant contract with Anthropic worth $15 billion annually. While Starlink remains a strong revenue source, the AI segment shows promise but also substantial losses. A potential acquisition of Cursor could enhance SpaceX's software revenue, positioning it as a key player in AI infrastructure. However, the company faces risks due to high capital expenditures and ongoing losses.</p>

SpaceX IPO: The Investment Case Behind Elon Musk's Space, Starlink, and AI Infrastructure Giant