SpaceX is officially preparing for its long-awaited debut on the public markets, and the company’s latest financial disclosures show it is spending money like a titan of the artificial intelligence industry. The rocket manufacturer, now intertwined with Elon Musk’s AI firm xAI, filed its S-1 prospectus this week. These documents reveal a company that is no longer just launching satellites; it is aggressively building a global computing empire that requires massive, consistent capital.
The most eye-popping figure in the filing involves a new agreement with Anthropic. According to the documents, Anthropic will pay SpaceX $1.25 billion every single month through May 2029. This massive influx of cash supports the development of xAI’s data centers. While this contract secures a steady stream of income, it also highlights how much hardware the company must maintain to stay relevant in the AI race. Should either party decide to walk away, they can terminate the deal with 90 days of notice.
The company’s financial records also show the heavy cost of running a social media giant. X, formerly known as Twitter, struggled significantly last year due to a volatile relationship with major advertisers. The filing reports a $595 million decrease in advertising revenue during 2024. This loss forces the company to rely even more heavily on its space and AI divisions to keep the entire conglomerate afloat. Investors must now decide if the massive potential of the space-based data center vision can offset the declining ad business at X.
SpaceX has ambitious plans for the future that go far beyond standard satellite launches. The S-1 filing explicitly mentions an ambition to deploy large-scale orbital infrastructure. This includes an orbital AI compute system that would require a constellation of up to one million satellites. Building such a vast network creates a “risk factor” that the company is clearly trying to communicate to future shareholders. The success of this vision depends on gaining spectrum authorizations, orbital debris mitigation approvals, and international regulatory clearance. The company admits there is no guarantee these approvals will arrive on an acceptable timeline.
Legal and regulatory scrutiny remains another major hurdle for the company. The prospectus lists numerous investigations currently facing the business. One of the most high-profile concerns involves allegations that the Grok chatbot generated explicit, nonconsensual imagery of children. These “risk factors” confirm that the firm operates in a legally complex environment where a single safety error could lead to government fines or lawsuits. Investors are being warned that these ongoing inquiries could impact the company’s reputation and bottom line.
The structure of the stock offering also highlights Musk’s desire to maintain total control. SpaceX plans to use a dual-class share system. This arrangement concentrates voting control in the hands of Mr. Musk and other Class B common shareholders. This means that even after the public stock sale, retail investors will have almost no say in how the company sets its strategy. For many, this is a standard feature of a Musk-led company, but it remains a point of contention for those who prefer more traditional corporate governance.
Even with these complexities, the market expects SpaceX to be the largest public offering in history. While the prospectus does not list an exact valuation, the company recently hinted at figures that would comfortably reach into the trillion-dollar range. If the offering succeeds, it will easily surpass the previous records held by the biggest tech companies in the world.
The strategy is clear: SpaceX is positioning itself as the primary infrastructure provider for the next decade of artificial intelligence. By combining the physical reach of its satellite constellation with the digital power of its xAI centers, the company is building a vertically integrated monopoly. Whether or not it can turn these expensive investments into steady, reliable profit remains the biggest question for the public market.
Potential shareholders should look closely at the cash burn rate. The company is investing billions to stay ahead of rivals. If the company hits its target, it will likely be the dominant player in space, internet connectivity, and AI computing. If the costs continue to balloon without matching revenue, it could face a rocky start on the Nasdaq. As the June listing date approaches, the battle for the future of space-based AI is about to get much more expensive.
