SpaceX IPO S-1 filing
Elon Musk's biggest competitor is secretly paying him 1.25 billion dollars per month. SpaceX just revealed its financials for the first time in 23 years of existence. And buried deep in the S-1 is a detail that changes how you should think about the entire AI race. Anthropic, the company building Claude, the company that positions itself as OpenAI's biggest threat, the company valued at over 100 billion dollars, is paying SpaceX 1.25 billion dollars every single month for compute capacity through May 2029. That is 15 billion dollars a year flowing directly from Elon's top AI competitor into Elon's bank account. Think about what that means. Every time Anthropic trains a new model, improves Claude, or lands an enterprise customer, a massive chunk of that revenue goes straight to the guy who owns the competing AI product. Anthropic is literally funding the war against itself. And that's just the beginning of what this filing reveals. The entire SpaceX IPO is structured around a bet most people haven't figured out yet. In 2025, SpaceX spent 20 billion dollars in capex. 60 percent of that, roughly 12 billion dollars, went to AI infrastructure. Rockets and satellites got the leftovers. In Q1 2026 alone, 7.7 billion dollars out of 10 billion dollars in total capex went to AI. The rocket company is spending like an AI company. Meanwhile, xAI, the division that houses Grok, generated 3.2 billion dollars in revenue for the full year of 2025. But its R and D costs tripled to 5 billion dollars. It is burning cash at a pace that would have destroyed it as a standalone company. Which is exactly why Elon merged it into SpaceX two months before filing the IPO. And Starlink is the engine that makes the whole thing work: 11.4 billion dollars in revenue, 4.4 billion dollars in operating profit, and 10.3 million subscribers across 164 countries. It is one of the most profitable subscription businesses on the planet right now. But the average revenue per user dropped from 99 dollars per month in 2023 to 66 dollars per month in March 2026. Subscribers quadrupled but each one is paying a third less. Starlink is growing by getting cheaper. SpaceX has lost 37 billion dollars since it was founded. Net loss in 2025 was 4.9 billion dollars. This is a company that has never turned an annual profit in 23 years of operation, and it is about to IPO at a 1.75 trillion dollar valuation. And the total addressable market SpaceX claims in the filing is 28.5 trillion dollars. That is a quarter of global GDP. So here is what investors are actually buying when this IPO prices. They are buying the most profitable satellite internet business in history, stapled to an AI lab that is burning cash, wrapped inside a Mars colonization pitch that requires building a permanent city on another planet, funded by monthly billion dollar payments from a direct competitor who has no other option for compute at that scale. This is the kind of thing only Elon could pull off.
