Space. SpaceX's launch business is the enabling infrastructure for everything else. As of March 31, 2026, the company had launched approximately 7,400 metric tons to orbit across roughly 650 orbital missions with a greater-than-99% mission success rate using its Falcon rocket family.¹ Falcon 9 — the world's first rapidly reusable orbital rocket — has completed approximately 620 launches; a single booster has now flown 34 times.¹ Since 2023, SpaceX has launched more than 80% by mass of all payloads reaching orbit globally each year. The company is the primary launch provider for the U.S. government, completing 11 of 12 National Security Space Launch missions and all five NASA crew and cargo missions to the ISS in 2025.¹

The next-generation Starship vehicle — a fully reusable super heavy-lift system designed to carry 100 metric tons to orbit in a reusable configuration — has completed 11 flight tests and is expected to begin commercial payload delivery to orbit in the second half of 2026.¹ Starship is the prerequisite for almost every major growth initiative in the S-1: deploying next-generation V3 broadband satellites (one Starship launch can carry 60 V3 satellites versus Falcon 9's equivalent of 3), scaling direct-to-mobile V2 satellites, and building orbital AI compute infrastructure. The company has invested over $15 billion in Starship to date; the Space segment booked $3.0 billion in R&D expense in 2025 and $930 million in Q1 2026 attributable almost entirely to Starship development.¹ Without Starship reaching commercial cadence, the company's entire long-term strategy stalls.

Connectivity. Starlink is the operating heart of the company. As of March 31, 2026, the constellation comprised approximately 9,600 satellites in LEO — roughly 75% of all active maneuverable satellites in orbit — delivering broadband to 10.3 million subscribers across 164 countries at a median download speed of 225 Mbps during peak hours for residential users.¹ Revenue from this segment was $11.4 billion in 2025, growing 49.8% year-over-year, with operating income of $4.4 billion.¹ Beyond consumer broadband, Starlink serves enterprise customers in aviation, maritime, agriculture, and construction; government customers through Starshield, a dedicated high-security network for U.S. national security applications; and approximately 30 mobile network operator (MNO) partners across six continents through a satellite-to-mobile constellation of approximately 650 V1 Mobile satellites, reaching 7.4 million monthly unique devices.¹

A notable ARPU trend warrants attention: monthly ARPU has declined from $99 in 2023 to $66 in Q1 2026.¹ The company attributes this to subscriber mix — faster growth in lower-ARPU markets and consumer tiers — but the trajectory is material. Total Connectivity revenue continues to grow rapidly because subscriber volume is expanding faster than ARPU contracts, but the long-run equilibrium between these two forces is not yet established.

AI. SpaceX's AI segment is the product of the February 2026 acquisition of xAI (founded 2023) and xAI's prior acquisition of X Holdings (Twitter/X) in March 2025, both accounted for as common-control transactions and retrospectively combined in all periods presented.¹ The segment operates on three pillars: AI compute infrastructure (COLOSSUS and COLOSSUS II, collectively approximately 1 gigawatt of compute power, which the company describes as the largest coherent AI training clusters on Earth); the Grok frontier model (launched November 2023, now at Grok 4 with GPQA Diamond frontier-level scientific reasoning performance); and the X platform (~550 million MAUs, approximately 350 million daily posts, 117 million Grok AI users as of March 2026).¹

The segment generated $3.2 billion in 2025 revenue and an operating loss of $6.4 billion, driven by $12.7 billion in capital expenditures for compute infrastructure buildout.¹ A significant post-filing development: in May 2026, SpaceX entered cloud compute agreements with Anthropic at $1.25 billion per month through May 2029, monetizing spare COLOSSUS capacity while Grok 5 trains at COLOSSUS II.¹ The company also holds an option to acquire coding assistant Cursor (Anysphere, Inc.) at an implied equity value of $60 billion, payable in Class A shares; termination of the option triggers a $1.5 billion fee plus an $8.5 billion deferred services fee.¹

"We believe that space represents the largest economic frontier in human history... We believe AI infrastructure in space can utilize the virtually limitless power of the Sun and thereby enable the use of AI as a transformative force for understanding the universe and improving the daily lives of all humans."
— Prospectus Summary, SpaceX S-1 Registration Statement¹

The long-term thesis connects all three segments: Starship reduces the cost of reaching orbit by an estimated 99% or more versus historical averages; cheaper access enables a massive Starlink constellation of potentially millions of satellites; orbital AI compute satellites in sun-synchronous orbit powered by continuous solar energy are expected to begin deployment as early as 2028. The company also announced a collaboration with Tesla and Intel on Terafab, a chip manufacturing initiative targeting one terawatt of annual compute hardware production. No financial terms, timelines, or definitive agreements have been finalized for Terafab.¹

SpaceX S-1: The Infrastructure IPO Behind Every Layer of the AI-Space Stack

The Power Delivery Gap