SpaceX IPO: $1.75 Trillion, Still Losing Money

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**Stage Zero** (1:27)
The Space Exploration Technologies Corps is filing for a public offering at a valuation approaching $1.75 trillion.

**SPEAKER_6** (1:35)
Right.

**Stage Zero** (1:36)
And the entity going public, it consolidates the core aerospace business with the XAI Artificial Intelligence Division and the X social media platform.

**SPEAKER_8** (1:46)
You look at that corporate structure and you have rockets, satellite internet, a global social media network, and a frontier artificial intelligence model.

**Stage Zero** (1:55)
Yeah.

**SPEAKER_8** (1:56)
All existing under a single corporate umbrella. It forces a very specific question for anyone evaluating this.

**Stage Zero** (2:02)
Which is what exactly?

**SPEAKER_8** (2:03)
Are investors being offered a piece of an aerospace manufacturer, or are they funding the creation of an artificial intelligence conglomerate designed to absorb other technology assets?

**Stage Zero** (2:14)
The financial anatomy of the consolidated entity provides the most direct answer to that.

**SPEAKER_8** (2:18)
Right, then the number is usually...

**Stage Zero** (2:19)
When you evaluate the combined financials, the entire organization generated roughly $18.67 billion in revenue.

**SPEAKER_8** (2:26)
Which is substantial.

**Stage Zero** (2:27)
It is, but it operated at a net loss of nearly $5 billion.

**SPEAKER_8** (2:31)
That is a very heavy deficit.

**Stage Zero** (2:32)
Right, and the breakdown of that revenue is where the internal mechanics of the company really become clear.

**SPEAKER_8** (2:38)
So where is the money actually moving?

**Stage Zero** (2:40)
Well, the connectivity segment, which is primarily the Starlink satellite broadband service, is highly profitable. That specific division reported an 86% increase in earnings before interest, taxes, depreciation, and amortization.

**SPEAKER_8** (2:55)
You have to look at what that 86% increase actually means in practice.

**Stage Zero** (2:59)
Right.

**SPEAKER_8** (3:00)
Earnings before interest, taxes, depreciation, and amortization. I mean, that is the metric telecom companies use to show how much cash their core operations are actually spitting out.

**Stage Zero** (3:11)
Yeah, before accountants start deducting the cost of the hardware.

**SPEAKER_8** (3:13)
Exactly. The subscriber base doubled.
And the margins on providing space-based internet are proving to be remarkably resilient.

**Stage Zero** (3:22)
Because the infrastructure is already deployed.

**SPEAKER_8** (3:24)
Once you get the satellite into low earth orbit, the variable cost of adding one more subscriber in a rural area or on a cruise ship is practically zero.

**Stage Zero** (3:34)
Right. The satellite is already up there beaming the signal.

**SPEAKER_8** (3:37)
So that division is functioning as a cash generating engine. If the satellite internet division is generating that level of profit and scaling that rapidly, you have to look at where those profits are draining to result in a $5 billion consolidated net loss.

**Stage Zero** (3:51)
The artificial intelligence segment is the drain. Yeah. That division, which houses the XAI models and the X platform, reported an operating loss of over $6 billion.

**SPEAKER_8** (4:02)
Six billion dollars just in operating loss.

**Stage Zero** (4:04)
Yeah. The earnings from the satellite internet business are directly subsidizing the massive capital expenditures required to build artificial intelligence infrastructure.

**SPEAKER_8** (4:13)
It is a direct transfer.

**Stage Zero** (4:14)
Every dollar of profit generated by beaming broadband to remote areas is essentially being diverted to purchase graphics processing units and power data centers.