Elon Musk’s pitching SpaceX IPO at $1.78 trillion puts the AI trade to the test

4 June 2026

Elon Musk begins the SpaceX IPO roadshow today seeking up to $86 billion at a valuation of $1.78 trillion, in what could become the largest public offering ever, a deal that many investors increasingly view as a crucial test of confidence in the AI investment story.

A blockbuster SpaceX IPO would be widely seen as a vote of confidence in the AI trade.

A disappointing one would be interpreted as a warning on valuations, warns Nigel Green, CEO of global financial advisory giant deVere Group.

Beyond rockets and satellite communications, SpaceX is presenting a long-term vision built around artificial intelligence infrastructure in orbit, the commercial development of space-based resources and eventually transporting people beyond Earth.

Nigel Green comments: “Seeking to raise as much as $86bn at a valuation of almost $1.8 trillion means the IPO has become far more than a fundraising exercise.

“It is the most important test yet of investor appetite for the next phase of the AI-driven market rally. This offering arrives at a pivotal moment for global markets. Investors are being asked to place a value on one of the most ambitious growth stories ever brought to public markets. The outcome will provide important insight into how much confidence remains behind the AI trade that has powered equities higher over the past two years. SpaceX sits at the centre of some of the most powerful themes shaping investment today, including AI, communications infrastructure, advanced manufacturing and commercial space development.”

The proposed valuation would place SpaceX among the most valuable companies in the world despite the company remaining loss-making.

Investors are effectively being asked to look well beyond current earnings and focus on the potential scale of future opportunities across multiple industries.

Nigel Green says: “SpaceX is asking investors to support opportunities that stretch years into the future.

“The valuation reflects extraordinary expectations and assumes a significant share of future growth across multiple sectors.”

The significance of the listing extends far beyond one company. A growing number of major AI businesses are preparing to access public markets or raise fresh capital as competition intensifies across the sector.

Tech companies continue to commit vast sums to AI infrastructure, computing power and research in pursuit of leadership positions.

The deVere CEO notes: “A successful debut would send a strong signal that investors remain comfortable backing ambitious AI-driven growth stories despite increasingly elevated valuations.

“It would reinforce confidence across the sector, support private market valuations and strengthen the prospects for other companies considering public listings. Markets would view it as evidence that demand for transformational opportunities remains exceptionally strong.”

He argues the opposite outcome would be equally significant.

“A weaker reception would raise serious questions about where investors are drawing the line on valuation. No investment theme rises indefinitely without scrutiny. Investors may continue to believe strongly in artificial intelligence while becoming more selective about what they are willing to pay for future growth. SpaceX has remarkable assets, exceptional tech capabilities and a highly compelling long-term vision. Yet even companies with extraordinary potential must convince investors that future opportunities justify present valuations.”

Markets, explains the deVere chief executive, are approaching a period where valuation discipline is likely to become increasingly important.

“Artificial intelligence is reshaping industries, business models and economies. Few investors doubt its long-term impact. The debate now centres on price. SpaceX offers one of the clearest opportunities yet for markets to demonstrate whether enthusiasm for AI remains powerful enough to support ever-higher valuations, or whether investors are beginning to demand a greater margin of safety.”

Nigel Green concludes: “A record-breaking IPO would strengthen confidence that the AI trade still has considerable momentum and that investors remain willing to fund bold visions of the future.