SpaceX Makes History With Biggest Wall Street Debut Ever

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SpaceX, again, 174.69, it's moving fast, up almost 40, no, excuse me, up almost 30% here in the trade. Hey, one thing we wanted to point out, and we want to continue with our all-team coverage here, Elon Musk, earlier this morning in a live stream on another one of his platforms and companies, we are talking about X. Here's what he had to say. There are always problems on Earth. There are always problems on Earth. There are always things that we wish to be better, that we want to solve here on Earth, and we should solve them. But there also have to be things that get you excited about the future, that make you glad to wake up in the morning, because you can't wait to see what happens next.
And that's the future that SpaceX wants to bring to you. All right, that, of course, was Elon Musk on a live stream on X this morning. Felt kind of spacey there, Tim Stenovec. It did. It also felt very familiar if you've read the S1 for SpaceX. It felt like I was, you know, reading that all over again. This is the messaging that Elon and company want to get across, that waking up in the morning, you can't wait to see what happens next, the future that SpaceX wants to bring to you. All right, guys, so let's bring back Bailey Lipschultz and Ed Ludlow, of course, Bloomberg News IPO reporter Bailey Lipschultz and host of Bloomberg Tech on Bloomberg Television, Ed Ludlow. I mean, is this all about the future, Ed? The valuation of this, we have talked so much about the valuation of the SpaceX company now. And is it all about future expectations, which is often what you do when you kind of buy into Elon and his story and his companies? Yeah, what investors have had to understand is an already quite diverse business that has lots of different arms. And then over a very distant timeline, things happening in a different order. So SpaceX still has a sort of guiding mission of making humankind a multi-planetary species. One thing I would know, and again, all we can do is go back and read the documents. It's stated in black and white. But part of Mr. Musk's compensation package is literally tied to the goal of establishing a human colony on Mars. And so he doesn't really fully realize his stock based comp without achieving that goal. Let's for a second give some sympathy to the Businessweek listeners somewhere around the world that is hearing that for the first time.
The problem is that, OK, SpaceX wants to put humankind on Mars and actually in the interim on the moon. It's all laid out for investors, but the business in the future has nothing to do with that. Well, what I want to ask you, and Bailey, come on in on this when we go to evaluation. Let's say Elon doesn't do that, but is SpaceX really largely an AI company going forward? And is it about what he does with data centers and space and so on and so forth when it comes to the valuation and kind of growing into it? Well, I think Ed and I were one of the first, if not the first to really call out the fact that SpaceX pitched the $26.5 trillion AI story. So that's terrestrial data centers, that's orbital data centers, that's potentially making Grok a real rival to Claude in Chat GPT. Pretty pie in the sky ambitions. Again, it's really, when I talk to some critics, they say, well, you can't disprove a $26.5 trillion or TAM because, I don't know, you say it's real, everyone else kind of buys into it. But that's the vision. I think when you talk to investors and people who are Musk believers, Mars, this idea that they're going to be the Union Pacific of space and comparing Mars to California is a big part of that pitch. But the actual dollars and cents in the interim will come from the ability to provide compute via these orbital data centers. One thing I like about California is you can just go outside and enjoy it without wearing a space suit, but that's neither here nor there. I'm going to go back to this over and over again, which is what we know about 2025 revenue from SpaceX, the segments, the reporting segments. This is what we're going to be watching in the future. Remind everybody space about 22 percent of 2025 revenue, connectivity, which of course includes StarLink about 61 percent and then 17 percent is AI. In terms of the growth opportunities in those three segments, which is the one that investors are most bullish on? Yeah, in the immediate term, in the immediate term, they are most bullish on something that's quite recent, which is SpaceX AI. Remember SpaceX owns XAI. As of early 2026 Very quickly pivoting itself to be a Neo cloud. In other words, renting the compute capacity on Earth, the data center that's terrestrial in nature to.