Starlink makes billions, and the new rocket burns through profits. SpaceX is getting ready for an IPO
Starlink, satellite Internet access also offered in Poland earned $4.4 billion in 2025. This easily covered the loss incurred by the space division of the entire SpaceX company, to which Starlink belongs. This department is currently spending huge amounts of money on a new satellite-launching rocket. This is all information from fragments of the company's public offering registration obtained by Reuters.
Read also: SpaceX before the historic IPO. Musk is spending huge amounts of money
The company itself has set itself the goal of building data centers for artificial intelligence in space. In 2025, the artificial intelligence division – which houses xAI – was responsible for 61 percent total capital expenditures of the consolidated companyamounting to USD 20.74 billion. At the same time, rising costs have led this department to… operating loss of $6.4 billion.
Given plans to build an entire fleet of data centers in space, SpaceX's spending is unlikely to drop any time soon, writes Reuters.
SpaceX public offering
SpaceX is preparing to launch what may be the largest initial public offering in history. Although the company plans to raise USD 75 billion. as part of a public offering at a valuation of USD 1.75 trillion, it may be forced to return to the markets with another offer in a few years if the increase in capital expenditure continues to exceed the increase in revenues – writes Reuters.
The company estimates the total target market at as much as $28.5 trillion, a large part of which is related to artificial intelligence for enterprises.
Last year, capital expenditures more than doubled, exceeding revenues by about $2 billion. “This gap may become even wider as analysts estimate that the cost of implementing the company's plan to launch a constellation of one million satellites serving data centers will be trillions of dollars,” we read further.
Cursor for $60 billion.
The recently revealed deal with AI code generation startup Cursor adds even more uncertainty to the Elon Musk-led company's financing options. SpaceX has the option to buy Cursor for approximately $60 billion. or withdraw and pay approximately $10 billion. for cooperation, writes Reuters.
“This structure allows SpaceX to postpone its decision until the IPO, but the financial consequences are serious. If SpaceX decides to accept a lower cooperation amount, it will likely lose access to Cursor's lucrative customer base, but the financial consequences will reduce its cash reserves by months, not years,” we read.
