Elon Musk is reportedly looking to finally take SpaceX public after years of resistance, according to sources who spoke to The Wall Street Journal . The company has long said it wouldn't choose an IPO until it had established a presence on Mars. That isn't happening anytime soon .
So why now? Company insiders have suggested it's because Musk wants to build AI data centers in space. Google recently announced it was looking into putting a data center in space , with test launches scheduled for 2027. Musk reportedly wants to beat his rival to the punch, but SpaceX would need the billions of dollars in capital that an IPO would deliver. Putting a giant center in space isn't cheap.
Sources say that Musk wants to complete the IPO by July. SpaceX is reportedly expected to select banks to lead the stock offering in the near future.
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This is also being seen as an attempt to boost xAI, which trails behind rivals like OpenAI and Google in the AI race. If SpaceX were to be successful in putting data centers in space, it's likely that xAI would get a sweetheart deal given that Musk runs both companies. Then they could pass money to one another in perpetuity, which seems to be the AI way .
Other companies have also begun considering jettisoning data centers into the great beyond. Blue Origin CEO Jeff Bezos recently suggested that shifting data centers to orbit makes sense . OpenAI CEO Sam Altman has been looking into partnering or purchasing a rocket maker called Stoke Space for a similar reason.
Of course, putting data centers in space is an extraordinary undertaking . There are serious issues that must be overcome, from latency to heat dissipation and radiation. Components must be launched and the structure must be built in space. WSJ reports that SpaceX made a breakthrough of some sort last year, but the company hasn't announced specifics.