SpaceX has filed its IPO prospectus, revealing strong performance in its Starlink satellite internet division, which now has over 10 million subscribers and a 36% operating margin. Revenue grew 32% year-over-year, and the business is profitable even as it expands into lower-priced international markets. However, the company’s strategic focus appears to be shifting: 76% of first-quarter capital expenditures were allocated to AI, not space, driven by a $15 billion annual deal with Anthropic and plans to acquire AI startup Cursor for $60 billion.

The S-1 also highlights concerns over valuation, with SpaceX targeting a $2 trillion market cap despite a $5 billion loss last year. This implies a price over 100 times sales, far exceeding typical benchmarks. The corporate structure further complicates investor appeal, featuring dual-class shares that give Elon Musk supermajority control and compensation plans tied to market cap growth, which may not align with shareholder returns.

While Starlink and the launch business show tangible progress, much of the valuation hinges on long-term, speculative visions like Mars colonies and space-based AI data centers. Analysts remain cautious, noting that most hyped IPOs underperform in their first year. The company’s pivot toward AI suggests it may be less a space firm and more a tech conglomerate with space assets.