On 13 October 2024, SpaceX successfully launched and landed its largest rocket ever at Starbase near the Texas-Mexico border; the successful landing using the Mechazilla system marked a milestone in space exploration.

Elon Musk described the achievement as a “big step towards making life multiplanetary” through reusable rocket technology; this innovation aims to significantly reduce the cost of space launches, potentially enabling missions to the Moon and Mars.

Comparisons have been drawn between Musk and Tony Stark from Marvel Comics, highlighting the ambitious leadership behind SpaceX. The company’s upcoming initial public offering (IPO) will allow the general public to own shares for the first time, a move that has generated significant interest in the UK.

UK retail investors are expected to be allocated around £1.5bn worth of shares. Simon Belsham of Hargreaves Lansdown noted the IPO could encourage a new generation of investors, stating it might be “a first foray into investing for many”.

A Staggering Valuation

The IPO values SpaceX at $1.75trn. Placing it among the top 10 most valuable companies globally, as this valuation is remarkable considering the company lost nearly $5bn last year, while SpaceX’s valuation includes its rocket design, satellite manufacturing, and the Starlink communications network.

The Starlink network has proven important in Ukraine’s defense against the Russian invasion, but Despite its profitability, the Starlink segment is valued at only around $300bn, less than 20% of the $1.75trn target valuation.

A Big Bet on AI

These data centers. The real focus of the IPO is on SpaceX’s AI ventures, as the company’s xAI division, along with plans for space-based data centers, forms the backbone of its future strategy. Powered by solar energy and cooled by space’s natural chill, aim to provide vast computing power.

SpaceX envisions human-crewed bases on the Moon and Mars, underpinned by AI technology. The company has identified a $28.5trn total addressable market, with $26.5trn attributed to AI. This suggests a belief in AI’s potential to rival the entire economies of the United States or Europe.

Ownership Without Control

Despite its ambitious vision, SpaceX’s business model remains unclear to some analysts. Sinead O’Sullivan, an economist, questioned the company’s primary industry, noting that much of its capital expenditure is on data centers and an AI company more focused on social media than space exploration.

Elon Musk holds significant control over SpaceX, with 42% ownership and 85% voting power due to super-voting shares. Financial journalist Robert Armstrong raised concerns about the lack of control for investors, stating that investors should pay a for forfeiting control.

Despite these concerns, Musk’s track record with Tesla, which became the most valuable car company in the world, has inspired some investors. His ability to challenge industry norms and prove doubters wrong continues to attract interest in his ventures.

The upcoming IPO represents a significant moment in the history of stock markets and could cement Musk’s status as the first trillionaire. However, the success of SpaceX will depend heavily on its AI initiatives and the feasibility of its grand vision for the future of human exploration and technology.