On Wednesday, Elon Musk's SpaceX released its S-1 prospectus ahead of its upcoming initial public offering (IPO). The massive document reveals all the details of Elon Musk's much-discussed space venture, which has recently merged with xAI, Musk's artificial intelligence (AI) company, which itself had previously merged with X, formerly known as Twitter. Therefore, the new conglomerate now spans sev...
On Wednesday, Elon Musk's SpaceX released its S-1 prospectus ahead of its upcoming initial public offering (IPO). The massive document reveals all the details of Elon Musk's much-discussed space venture, which has recently merged with xAI, Musk's artificial intelligence (AI) company, which itself had previously merged with X, formerly known as Twitter. Therefore, the new conglomerate now spans several businesses beyond rocket launches and the Starlink satellite broadband service, including digital advertising, AI large language models, and loftier ambitions to eventually start an industrial economy on the moon, mine asteroids, and found a colony on Mars. For the moment, it may seem difficult for investors to know where to start in assessing the business. But for the company to justify its lofty rumored $1.5 trillion IPO valuation, it's going to have to get this one big thing right. SpaceX by segment The S-1 gave some color to SpaceX's different business segments: Space, Connectivity, and AI for full-year 2025 and first-quarter 2026: Segment 2025 Revenue 2025 Operating Income (Loss) Q1 2026 Revenue Q1 2026 Operating Income (Loss) Space $4,086 ($657) $619 ($662) Connectivity $11,387 $4,423 $3,257 $1,188 AI $3,201 ($6,355) $818 ($2,469) Total $18,674 ($2,589) $4,964 ($1,943) As you can see, the only profitable segment at the moment is the Connectivity segment, which is mainly Starlink broadband revenues. Unlike the other segments, SpaceX disclosed the 2025 growth rate for Connectivity, which saw revenue increase 49.8% and operating income grow by 120.4%. No doubt, Starlink looks to be a great business, but its value likely falls well short of $1.5 trillion, which would equate to 131 times that segment's sales. But the rest of the business has big question marks Meanwhile, the Space and AI segments, at least in this snapshot, remain question marks. The Space segment is still losing money, and first-quarter revenue is well below the $1 billion run rate seen last year. Th...