SpaceX reportedly files for IPO with $1.75 trillion valuation target

SpaceX has reportedly filed confidential paperwork for an initial public offering (IPO). According to reports, the aerospace company would raise $75 billion at a $1.75 trillion valuation.

The reported details of the confidential filing include:

• Capital target: SpaceX would raise $75 billion.
• Valuation: The company would be valued at $1.75 trillion.

CEO Elon Musk has stated that orbital data centers will be a significant part of SpaceX’s future. On a recent episode of TechCrunch’s Equity podcast, hosts Kirsten Korosec and Sean O’Kane discussed this vision alongside the broader industry shift toward space-based infrastructure. This shift comes as developers face growing opposition around the country to building data centers on Earth. Commenting on the trend, O’Kane noted that “the engineering challenge may be less than the social challenge back here” on Earth.

SpaceX is not alone in chasing this market. Starcloud, a startup focused on orbital data centers that emerged from the Y Combinator accelerator, raised $170 million this week. Other companies are also targeting the space, including Jeff Bezos, Amazon, and Blue Origin. These entities are already competitors with SpaceX in the satellite network space, and orbital data centers represent a new front in this ongoing competition.

While the technical viability of space-based computing remains a subject of debate, the strategy offers a clear narrative benefit for a company heading toward public markets. Podcast host Anthony observed that Musk’s approach often signals to investors that they should judge his companies based on grand future visions rather than current earnings. This framing helps generate excitement ahead of a public offering, allowing investors to focus on future expectations rather than immediate constraints.

Beyond the narrative, the strategy directly feeds SpaceX’s underlying business model. Although the company generates revenue from its Starlink network, SpaceX is primarily a launch company. Transporting massive constellations of data-center satellites into space would generate a captive, recurring revenue stream for its core launch operations. This means SpaceX stands to benefit from the revenue generated by transporting these data centers to space, regardless of whether the orbital data centers themselves achieve immediate profitability.

Why it matters

SpaceX is leveraging the narrative of orbital data centers to potentially justify a massive $1.75 trillion valuation ahead of an initial public offering. At the same time, the strategy creates a new, captive revenue stream for its core launch business by positioning the company as the primary transport vehicle for space-based infrastructure.