The Real Story Isn't Starlink
SpaceX closed the largest IPO in history on June 12, raising $75 billion at $135 per share and a $1.77 trillion valuation. The stock jumped 19% on day one. Wall Street celebrated the rocket company going public. But here's what most missed: this isn't a space play anymore — it's an AI infrastructure bet dressed up in rocket fuel.
Look at where the money actually goes. According to the S-1 filing breakdown, xAI — the AI division SpaceX acquired in February 2026 — is bleeding $2.5 billion per quarter on data center buildout. That's $10 billion annually. The entire $75 billion raise? A significant chunk funds AI compute infrastructure and Starlink expansion, not rockets.
Starlink contributes 61% of revenue at $11.4 billion and runs 39% operating margins — it's the only profitable segment. Launch services brought in $3.8 billion. xAI? $3.2 billion in revenue, but operating at a massive loss. The company posted a $4.9 billion net loss in 2025 despite $18.7 billion in revenue, up 33% year-over-year.
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