SpaceX conquered the stars, now eyes bigger opportunity in AI

NEW YORK/SAN FRANCISCO: SpaceX sees artificial intelligence as its biggest long-term growth opportunity, with more than 90 per cent of its estimated total addressable market tied to the sector, according to an S-1 filing reviewed by Reuters ahead of the company’s expected initial public offering.
The filing shows SpaceX estimates its total addressable market at $28.5 trillion, with around $26.5 trillion linked to AI and $22.7 trillion of that tied specifically to enterprise AI.
The figures underline Elon Musk’s ambition to make SpaceX a major force not only in space and satellite communications, but also in the fast-growing AI industry.
SpaceX is moving ahead with an IPO expected this summer at a valuation of about $1.75 trillion, seeking to raise around $75 billion in what could become the largest stock market debut on record.
“We believe we have identified the largest actionable total addressable market in human history,” the filing said.
A total addressable market, or TAM, is a measure often used by investors to gauge the maximum potential revenue available to a company if it were to capture an entire market. It is not a revenue forecast or valuation, but is widely watched in assessing high-growth businesses.
SpaceX did not respond to a request for comment.
The new disclosure marks a sharp contrast with the company’s current business model, which remains heavily dependent on Starlink, its satellite internet division.
Starlink generated $11.4 billion of SpaceX’s total revenue of $18.7 billion in 2025 and delivered $4.4 billion in operating profit, making it the company’s biggest revenue engine.
By contrast, xAI — the artificial intelligence company founded by Musk in 2023 and acquired by SpaceX in February — posted an operating loss of $6.4 billion in 2025, widening from $1.6 billion a year earlier.
Overall, SpaceX reported a loss of $4.9 billion last year.
The filing also showed how capital-intensive the company’s AI expansion is becoming. Total capital expenditure rose to $20.7 billion in 2025, with AI accounting for $12.7 billion — more than spending on its space and connectivity businesses combined.
SpaceX said it plans to build on xAI products including Grok Enterprise, while also developing an autonomous platform with Tesla called Macrohard.
The company also warned prospective investors that it expects heavy spending on AI and related technologies, including the possible manufacture of graphics processing units, or GPUs, which are essential for advanced AI systems.
It said it also plans to build a specialised sales force and deploy engineers directly into customer operations to help businesses adopt AI tools.
“We believe that our enterprise strategy, which is focused on serving the digital needs of the world’s largest industries with AI solutions, positions us competitively to pursue this rapidly growing opportunity,” the filing said.
Still, one source familiar with the company’s financials expressed caution over the scale of the valuation being discussed, saying investors placing value only on businesses with clear visibility today may struggle to justify where the market could ultimately price the stock._Reuters