$1.75 Trillion — Musk's SpaceX-xAI Merger Aims for History's Largest IPO

$1.75 Trillion

Let that sink in. Only five companies on Earth are worth more than that right now: Nvidia, Apple, Alphabet, Microsoft, and Amazon. If SpaceX pulls off its planned Nasdaq IPO at this valuation, it would immediately become the sixth most valuable public company in the world.

And the largest IPO in history, by a wide margin.

But this isn't just a SpaceX listing. In February, SpaceX absorbed xAI — Elon Musk's AI company — in an all-stock deal. What's going public is a merged entity that builds rockets, operates a global satellite internet network, and runs frontier AI models. All under one corporate umbrella.

The Merger That Set This Up

In February 2026, SpaceX acquired xAI through an all-stock transaction. SpaceX was valued at roughly $1 trillion, xAI at approximately $250 billion. Combined: $1.25 trillion.

Two strategic rationales drove the deal.

First, compute infrastructure convergence. xAI runs the Grok series of large language models and needs massive GPU clusters. SpaceX operates Starlink, a global satellite communications network. Musk pitched the combination as enabling "orbital data centers" — a concept where distributed compute nodes are connected via satellite mesh networking instead of concentrated in traditional data center campuses.

Second, valuation engineering. SpaceX alone was already a $1 trillion company. Adding the AI narrative boosted the expected IPO multiple significantly. Pre-merger, SpaceX's projected IPO valuation was around $1.2 trillion. Post-merger, it jumped to $1.75 trillion.

Item	Figure
Pre-merger SpaceX valuation	~$1T
Pre-merger xAI valuation	~$250B
Combined entity valuation	~$1.25T
IPO target valuation	$1.75T
Target capital raise	$40B–$75B
Expected listing date	June 2026, Nasdaq
Price-to-revenue multiple	~90x (based on 2025 revenue of $15.5B)

Inside the IPO Filing

SEC Timeline Is Aggressive

SpaceX submitted its confidential draft registration statement to the SEC on April 1. The public S-1 is expected in late April or May, with a June Nasdaq listing as the target.

The $40–75 billion raise target is extraordinary. For context, the largest IPO in history was Saudi Aramco in 2019 at $25.6 billion. SpaceX is targeting nearly three times that. Whether the market can absorb that much capital in a single offering is the central question.

The "K2" Restructuring — What Actually Merged

The K2 restructuring completed in February integrated xAI's Grok LLM directly into SpaceX's operational architecture. Specifically:

• Grok models deployed for Starlink network optimization (satellite orbit management, traffic routing)
• xAI's compute infrastructure connected to SpaceX ground stations
• "Orbital data center" pilot program initiated

Some details remain vague. Whether "orbital data centers" means literal servers in space, or is a marketing term for geographically distributed ground-based data centers connected via Starlink, won't be clear until the S-1 is public.

90x Revenue — Bubble or Vision?

SpaceX's 2025 revenue was approximately $15.5 billion. At a $1.75 trillion valuation, that's roughly a 90x revenue multiple. For comparison, Nvidia at its most expensive traded around 40x revenue.

Justifying that multiple requires two things: explosive Starlink revenue growth (currently around $10 billion annually) and Grok becoming a meaningful revenue contributor. Neither is guaranteed.

90x revenue. That single number tells you everything about this IPO. This isn't a bet on current performance — it's a bet on a future where rockets, satellites, and AI form one integrated platform.

The Bigger Picture — AI's IPO Wave

SpaceX-xAI isn't the only AI-adjacent company eyeing the public markets. 2026 is shaping up to be the year of AI IPOs.

OpenAI is reportedly exploring a late-2026 listing, with annualized revenue now exceeding $25 billion. Anthropic, fresh off a $30 billion Series G at a $380 billion valuation, hasn't officially discussed going public, but the trajectory points that way.

If all three go public, the combined liquidity injection into AI stocks could reach hundreds of billions — reshaping the investment landscape for the entire AI ecosystem.

What This Means for You

For retail investors, the SpaceX-xAI IPO represents the first chance to directly invest in the "AI plus space" combination. SpaceX has been private since its founding, making it inaccessible to most individual investors.

But look at that 90x revenue multiple. A massive amount of optimism is already priced in. Rather than banking on first-day pops, the smart question is whether Starlink and Grok can generate the kind of revenue that justifies the valuation over a 5–10 year horizon.

For developers, watch the Grok API closely. Once SpaceX-xAI is a public company, monetization pressure intensifies. Free tiers may shrink, pricing may change, and API terms could shift as Wall Street demands revenue growth.

$1.75 trillion. That's the price tag on rockets plus AI.

Sources

• SpaceX Files for Historic $1.75 Trillion IPO — FinancialContent
• SpaceX-xAI Merger at $1.25 Trillion — Motley Fool
• SpaceX IPO Confirmed: $1.75T Valuation — Basenor