Musk's SpaceX buys AI coding start-up for $60bn days after IPO
Just days after its triumphant public debut, SpaceX is already throwing its financial weight around with a blockbuster $60 billion acquisition of an AI coding startup—a clear signal that Elon Musk is doubling down on software to complement his hardware empire.The timing is certainly electric. Since pricing its initial public offering at $135 per share, the aerospace juggernaut has watched its stock rocket roughly two-thirds higher in a blistering rally. That surge has propelled SpaceX's market capitalization to a staggering $2.9 trillion, narrowly overtaking Amazon's $2.7 trillion valuation—though it still trails giants like Microsoft, Apple, Alphabet, and Nvidia.
This historic listing didn't just shake up Wall Street; it officially minted Musk as the world's first trillionaire. Unsurprisingly, that milestone has already reignited fiery global debates around wealth inequality and the feasibility of taxation on ultra-high-net-worth individuals.
However, beneath these astronomical headline numbers lies a very classic Silicon Valley growth story. SpaceX's current valuation is overwhelmingly fueled by optimism about its future earnings, rather than present-day financial performance. In fact, the company is currently operating in the red, having accumulated a staggering $9 billion in net losses across 2025 and 2026 so far, according to regulatory filings. That hefty deficit is largely attributed to enormous capital expenditures on AI research, data centers, and other crucial infrastructure.
Despite the spending spree, the company’s core remains rooted in the stars—literally. Its primary focus continues to be the manufacturing and launching of reusable rockets, alongside its rapidly expanding Starlink internet satellite constellation. But with this year's integration of xAI—another Musk-owned venture—into its portfolio, SpaceX has officially planted its flag in the competitive artificial intelligence arena. By snapping up this specialized coding startup, the company is betting that intelligent software will be just as critical to its future as reliable rocket fuel.
