Key Points
SpaceX is preparing for its initial public offering (IPO) with the prospectus detailing a total addressable market (TAM) of $28.5 trillion, which it claims is the largest in human history. The report indicates that only 1% of this market relates to rocket launches, representing a potential of $370 billion. Currently, Starlink, SpaceX’s internet service, accounts for less than 6% of its TAM.
Most of SpaceX’s TAM, at $26.5 trillion, pertains to artificial intelligence (AI), with estimates breaking down to $2.4 trillion for AI infrastructure, $760 billion for consumer subscriptions, and $22.7 trillion for enterprise applications. Despite generating only $3.2 billion in revenue last year from its AI division, SpaceX’s IPO valuation is projected at $1.77 trillion, with analysts forecasting significant growth in AI revenues by 2040, potentially reaching $3.4 trillion.
Morgan Stanley and Goldman Sachs, both underwriters for the SpaceX IPO, express optimism for the company’s growth, particularly in AI, although their bullish outlook should be viewed with caution due to their financial stakes in the IPO.
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