SpaceX bets the rocket farm on AI

SpaceX's IPO registration reveals the company is repositioning itself as an AI-first business, with its xAI division consuming 61% of $20.74 billion in total capital spending in 2025 while posting a $6.4 billion operating loss. Starlink's $4.42 billion operating income is currently subsidizing this AI push, but capital spending already exceeds revenue by roughly $2 billion. SpaceX is targeting a $75 billion IPO at a $1.75 trillion valuation, with plans for a constellation of one million space-based data center satellites. A newly revealed deal with AI coding tool Cursor — either a $60 billion acquisition or a $10 billion collaboration — adds further financial uncertainty ahead of what could be the largest IPO in history.