Why SpaceX bought xAI: Data centers aren’t the only reason in space
While it’s certainly a step toward a public listing, SpaceX’s secretive IPO doesn’t put it under any strict timelines. Such confidential filings allow companies to receive direct feedback from the SEC on their IPO plans and make changes accordingly. Initially intended for use by smaller companies, this mechanism allows businesses to keep information private for longer periods of time, including the number of shares offered, their financial statements, their future plans, and anticipated risk factors.
In such a situation, the details of SpaceX’s draft IPO are unclear at the moment. Still, the fact of the filing indicates that the company is ready to move forward with going public.
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Unnamed sources cited by Bloomberg claim that SpaceX could seek a valuation of more than $1.75 trillion, and the company is considering a fundraising target of $75 billion. That’s a notable increase from the $25 billion fundraising target reported by Reuters last December, though in line with the $40 billion to $80 billion range reported last week by the Wall Street Journal, with both publications also citing anonymous sources. Either way, the IPO has the potential to be a significant boost to SpaceX’s finances.
Reuters reports that at least 21 banks are now working on a SpaceX IPO, with Morgan Stanley, Goldman Sachs, JPMorgan Chase, Bank of America and Citigroup playing major roles.
SpaceX earlier this year acquired Musk’s AI company xAI, which also included its social media platform The deal increased SpaceX’s valuation to $1.25 trillion at the time, and further consolidated Musk’s various X-branded companies. xAI acquired Musk-owned
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