This Week at SpaceX: AI Bets, Losses and Push for Control as Mega IPO Looms

SpaceX Mega IPO: AI Bets, Losses, and Retail Investor Push as $1.75T Valuation Looms

Key Developments Ahead of the SpaceX IPO

April 21 (Reuters) - Elon Musk's SpaceX saw a slew of developments this week as it barrels toward what could be the largest initial public offering in history.

The rocket and satellite company disclosed an option to acquire AI coding startup Cursor for $60 billion, outlined plans that would entrench permanent voting control for founder Musk, and is kicking off a three-day Wall Street analyst roadshow aimed at defending a $1.75 trillion valuation.

SpaceX is targeting a late-June market IPO with a $75 billion capital raising, even as excerpts from its confidential IPO filing show the company swung to a multi-billion-dollar loss in 2025, driven by heavy spending on artificial intelligence.

Major Developments

Here are some major developments:

AI and Technology Initiatives

• Cursor deal: SpaceX announced on Tuesday it has been granted the option to either acquire code-generation startup Cursor for $60 billion later this year, or pay $10 billion for a partnership.

AI Data Centers and Space Ambitions

• Warnings to investors: SpaceX has warned investors that its ambitions to build space-based AI data centers, as well as human settlements on the moon and Mars, rely on unproven technologies and may not become commercially viable, Reuters reported on Tuesday.

Corporate Governance and Voting Control

• Voting control: Reuters reported on Monday that SpaceX plans to hand Musk and some insiders super-voting shares that will outweigh other investors after the IPO.

Financial Performance and Capital Expenditure

• Financials: SpaceX swung to a $4.94 billion consolidated loss in 2025 on revenue of $18.67 billion. SpaceX and xAI, which merged earlier this year, ended 2025 with about $24.8 billion in cash on hand, assets of $92 billion, and liabilities of $50.8 billion. Capex increased almost five-fold over two years to $20.74 billion.

IPO Roadshow and Valuation Defense

• Analyst roadshows: SpaceX is kicking off a three-day Wall Street analyst roadshow this week to justify the $1.75 trillion valuation it is seeking in its IPO.

Executive Compensation

• Musk, executives' pay: Musk was paid $54,080 last year but stands to gain billions in equity after the IPO. The Information reported that Musk bought $1.4 billion of stock from employees last year. Reuters reported that SpaceX President Gwynne Shotwell earned $85.8 million in total compensation last year, placing her among the highest-paid U.S. executives. CFO Bret Johnsen earned $9.8 million.

Market Index Changes

• Index rejigs: The mega IPO has also driven index providers to consider revising their approach to designing market indexes, with Morningstar Inc saying its CRSP Market Indexes will add an "alternative liquidity screen", making it possible to add SpaceX and other giant IPOs to the benchmarks more rapidly.

Retail Investor Participation

• Retail push: Musk plans to allocate about 30% of shares to retail investors. Around 1,500 retail investors have been invited to tour its Starbase launch facilities in Texas, after the roadshow begins in the week of June 8. International retail access will be extended to the UK, the European Union, Australia, Canada, Japan, and South Korea.

(Reporting by Fabiola Arámburo and Mrinmay Dey in Mexico City; Editing by Muralikumar Anantharaman)