SpaceX’s Shift to AI: What This Means for Investors and Entrepreneurs in Oman
NEW YORK/SAN FRANCISCO – SpaceX has identified artificial intelligence (AI) as its most significant long-term growth opportunity, with over 90 percent of its estimated total addressable market (TAM) tied to the AI sector, according to an S-1 filing reviewed by Reuters ahead of the company’s anticipated initial public offering (IPO).
The filing estimates SpaceX’s total addressable market at $28.5 trillion, of which approximately $26.5 trillion is linked to AI, including $22.7 trillion specifically attributed to enterprise AI. These figures highlight Elon Musk’s vision to position SpaceX as a key player not only in space and satellite communications but also in the rapidly expanding AI industry.
SpaceX is progressing with an IPO targeted for this summer, with an expected valuation around $1.75 trillion. The company aims to raise approximately $75 billion, potentially setting a record for the largest stock market debut.
“We believe we have identified the largest actionable total addressable market in human history,” the filing states.
For context, TAM represents the maximum potential revenue a company could generate if it captured an entire market. It is a widely used metric for assessing high-growth businesses, though it is not a revenue forecast or company valuation.
Currently, SpaceX’s business remains predominantly driven by its satellite internet division, Starlink, which generated $11.4 billion of the company’s total $18.7 billion revenue in 2025, delivering $4.4 billion in operating profit. Starlink remains the company’s primary revenue source.
In contrast, xAI — the AI company founded by Musk in 2023 and acquired by SpaceX in February — reported an operating loss of $6.4 billion in 2025, up from a $1.6 billion loss the previous year. Overall, SpaceX recorded a net loss of $4.9 billion for 2025.
The filing highlights the capital-intensive nature of SpaceX’s AI expansion. Total capital expenditures reached $20.7 billion in 2025, with $12.7 billion dedicated to AI, exceeding the combined spending on its space and connectivity businesses.
SpaceX plans to build on xAI’s products, including Grok Enterprise, while also developing an autonomous platform with Tesla called Macrohard. The company cautioned investors about expected heavy investments in AI and related technologies, including potential manufacturing of graphics processing units (GPUs), critical components for advanced AI systems.
Additionally, SpaceX intends to establish a specialized sales force and deploy engineers directly within customer operations to assist businesses in adopting AI solutions.
“We believe that our enterprise strategy, focused on serving the digital needs of the world’s largest industries with AI solutions, positions us competitively to pursue this rapidly growing opportunity,” the filing emphasized.
However, a source familiar with SpaceX’s financials advised caution regarding the lofty valuation, noting that investors valuing only businesses with clear current visibility may find it challenging to justify the market’s potential future pricing of the stock.
— Reuters
Special Analysis by Omanet | Navigate Oman’s Market
SpaceX’s strategic pivot to AI underscores the transformative potential of AI-driven enterprise solutions, presenting vast growth opportunities for tech-savvy businesses and investors in Oman looking to align with global innovation trends. However, the heavy capital expenditure and current financial losses highlight significant risk and the need for cautious, long-term investment strategies in emerging technologies. Smart investors should focus on partnerships and capabilities that leverage AI adoption while preparing for high initial costs and evolving market dynamics.
