Published on 5/21/2026
Investors are tending to bet on SpaceX’s IPO at a valuation approaching two trillion dollars, despite the company incurring huge quarterly losses and accelerating spending on artificial intelligence and space projects, according to what Reuters reported.
In its initial public offering documents, the company revealed losses amounting to $4.28 billion during the three months ending in March 2026, an eight-fold increase compared to the same period last year.
The data also showed that the company’s cumulative deficit reached $41.31 billion as of the end of March, as a result of huge spending on the Starlink network, reusable rockets, and artificial intelligence data centers.
However, investors are betting on Elon Musk’s ability to turn Starlink into a source of cash flows that finances the development of the Starship rocket, which the company is counting on to reduce launch costs and expand artificial intelligence activities.
Starlink achieved revenues of $3.26 billion during the first quarter, an increase of nearly a third year-on-year, despite margins being under pressure resulting from international expansion and rising expenses.
In contrast, losses in the artificial intelligence sector jumped to $2.47 billion, while capital expenditures tripled to $7.72 billion, exceeding the combined spending of the rest of the company’s activities.
Space sector revenues also declined by 28.4% during the first quarter, and its losses widened to $662 million compared to $70 million a year ago, with continued intensive spending on developing “Starship.”
Reuters quoted analysts and investors as saying that the current bet is not based on traditional financial indicators, but rather on expectations that SpaceX will turn into one of the largest global companies in the fields of communications, space, and artificial intelligence in the future.
