The Reality Behind SpaceX’s $1.75 Trillion IPO Hype
Elon Musk plans to take SpaceX public this summer at a $1.75 trillion valuation. SpaceX made just $18 billion in revenue last year. That alone does not justify such a high price. To inflate its numbers, Musk merged SpaceX with XAI in early 2026. XAI runs the platform formerly known as Twitter and the Grok AI chatbot. Grok’s adoption is weak and its monetization efforts have flopped. XAI borrowed billions to build the Colossus data center in Memphis. It sits largely idle at just 11% utilization. Musk has leased the facility to rival Anthropic to cover costs. XAI lost $1.46 billion in Q3 2025 and is shedding staff amid toxic work conditions. When SpaceX absorbs XAI’s debt, investors must ask hard questions. Can a loss-making AI venture support a $1.75 trillion valuation? Is this IPO a way to mask financial troubles? As a passive investor, I’m furious that index committees might fast-track SpaceX without proper eligibility. Nigerians interested in finance and tech should watch closely before backing this deal.
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