SpaceX Launches Largest IPO in History

SpaceX, the aerospace company founded by Elon Musk, has made history with its initial public offering (IPO), pricing shares at $135. This offering, which will be listed on Nasdaq starting June 12, is set to raise an unprecedented $75 billion by selling 555.5 million shares.

This amount surpasses the previous record held by Saudi Aramco's IPO in 2019, positioning SpaceX's market capitalization at about $1.77 trillion.

Despite a 15% revenue growth to $4.69 billion in Q1, SpaceX reported a net loss of $4.28 billion. The company primarily generates income through its Starlink satellite internet service, alongside its artificial intelligence division, xAI.

In Q1, SpaceX allocated $7.7 billion towards AI investments, making it their largest expense category out of total capital expenditures of $10.1 billion.

Analysts at Oppenheimer have rated SpaceX shares as "outperform" with a target price of $190. Additionally, New Street Research estimates the value of the xAI division at $575 billion, positioning it alongside industry leaders like OpenAI and Anthropic.

This IPO may herald a series of public listings in the AI sector, as competitors Anthropic and OpenAI have also recently filed for their own listings.