Starlink's Sheen vs. xAI's Burn: The Dual Reality Behind SpaceX's Record $75 Billion IPO

SpaceX plans Nasdaq listing June 12, raising $75B, with 30% retail shares and a 5-for-1 split. Starlink profits offset by xAI losses; Starship test flight key.

SpaceX is rewriting the playbook for public offerings. The company plans to list on the Nasdaq on June 12 under the ticker SPCX, aiming to raise roughly $75 billion — more than double the haul of Saudi Aramco's 2019 record. But what truly sets this IPO apart is the retail-friendly approach: up to 30% of the shares will be reserved for individual investors, and a five-for-one stock split is planned to make the entry price more accessible.

The road to the exchange, however, is paved with contrasting financial signals. While the satellite internet business Starlink continues to mint money, the broader entity has been dragged deep into the red by the costly integration of Elon Musk's artificial intelligence startup xAI. The company posted a net loss of roughly $5 billion for fiscal 2025 on revenue of $18.6 billion. Inside the numbers, Starlink generated an operating profit of $4.42 billion on $11.4 billion in revenue — figures that vary slightly between reports, with some estimates placing the unit's operating profit closer to $8 billion. Whatever the exact number, Starlink remains the sole profit engine, having surpassed 10 million active subscribers across more than 160 countries by February 2026.

The bleeding came from xAI, which was folded into SpaceX in February. The AI division brought in $3.2 billion in revenue but burned through roughly $14 billion in cash. Total capital expenditures ballooned from $5.6 billion to $20.7 billion, with more than half directed toward AI initiatives — exceeding combined spending on space and satellite operations. Critics argue that the valuation target of up to $1.75 trillion depends on unsustainable multiples compared with legacy aerospace firms, but proponents point to SpaceX's vertical integration — launches, satellite manufacturing, global connectivity — as a structural advantage that justifies the premium.

A critical test arrives just days before the IPO prospectus is filed. On May 20, SpaceX is conducting the 12th integrated test flight of its Starship system, the first outing for the Version 3 vehicle. The upgraded design features Raptor-3 engines and only three grid fins instead of four, and it carries 22 mass simulators representing the next Starlink generation. The outcome is being treated by markets as an early gauge of whether SpaceX can deliver the technological scalability that underpins its multitrillion-dollar valuation. The official S-1 prospectus is expected to be submitted to the SEC on May 21 (some schedules list the publication as May 20), with a roadshow kicking off on June 4 and final pricing set for June 11.

The whirlwind of activity is already diverting capital from other Musk-linked assets. South Korean retail investors alone sold $330 million worth of Tesla shares in the past week and over $681 million in the past month, liquidating positions to free up cash for the SpaceX debut. Meanwhile, large institutional investors are raising red flags about governance. Pension funds such as CalPERS object to the multi-voting share structure that would grant Musk 79% voting control despite his 42% equity stake. They are demanding an independent committee to oversee transactions between Musk's various companies, pointing to a Tesla investment in SpaceX made in early 2026 as a cautionary case.

The bank syndicate handling the offering comprises 21 institutions, led by Goldman Sachs, Morgan Stanley, and JPMorgan Chase, with Goldman acting as the lead manager. After the IPO, SpaceX has already set its sights on another blockbuster deal: acquiring the AI startup Cursor for $60 billion. Failure to close that acquisition would trigger a $10 billion termination penalty — a reminder that the post-listing agenda is as ambitious as the listing itself.