SpaceX Has $250 Billion Chasing $75 Billion

GOOD MORNING, SpaceX's IPO is turning into a stress test for investor appetite. More than $250 billion of orders are chasing a $75 billion offering, even as the company pitches orbital AI data centers that are still years from commercial scale. That optimism is colliding with a more skeptical tape: tech reversed sharply lower Tuesday, while AI infrastructure companies kept signing multibillion-dollar contracts. The market still believes in the buildout — it is just getting pickier about the price.

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MARKETS | TLDR

• Tech reverses sharply lower: The S&P 500 fell 0.3% and the Nasdaq dropped 1.0% after both indexes gave up strong early gains, while the Dow edged 0.2% higher.
• SpaceX demand approaches four times the IPO size: Investors placed more than $250 billion of orders for a $75 billion offering, underscoring the scale of demand ahead of Friday's Nasdaq debut.
• Oil falls as Iran and Israel halt attacks: Brent fell roughly 4% toward $91 as direct attacks paused, easing part of the inflation pressure that had built into rates and equities.

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MEGA IPO

SpaceX Has $250 Billion Chasing $75 Billion

SpaceX has drawn more than $250 billion of investor demand for its planned $75 billion IPO, Reuters reported Tuesday, putting the deal at roughly 3.5 to 4 times oversubscribed before books have even closed. The company is targeting a valuation around $1.75 trillion and is expected to begin trading on Nasdaq on Friday.

The size of the order book matters because it shows how much capital is still willing to chase scarce mega-cap growth stories. Long-only institutions have reportedly submitted large orders, while SpaceX is also considering an unusually large allocation to retail investors. Strong demand does not guarantee a successful aftermarket, but it does suggest the market has room for another trillion-dollar technology company.

The bigger question is what investors are actually paying for. SpaceX's current businesses are Starlink and launch services; much of the valuation upside rests on future programs including Starship, xAI and orbital computing. A heavily oversubscribed IPO therefore says as much about investor willingness to fund distant optionality as it does about today's fundamentals.

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ORBITAL AI

SpaceX Wants to Put AI Data Centers in Orbit by 2027

SpaceX executives told investors the company aims to launch initial demonstrations of space-based AI computing infrastructure by late 2027, earlier than the "as early as 2028" deployment timeline disclosed in its IPO filing. Elon Musk said the first AI satellite could use Nvidia chips and deliver computing power roughly equivalent to an Nvidia GB300 rack.

The pitch is strategically important because orbital compute is central to the valuation story. SpaceX argues that its reusable rockets and Starlink network create a unique path to putting large amounts of computing capacity in space, where solar power and cooling constraints differ from terrestrial data centers.

But the project remains highly speculative. Starship is still behind earlier targets and has not yet demonstrated the rapid reusability required for large-scale orbital deployment. That makes orbital AI a useful example of the broader AI market today: the addressable opportunity is enormous, but the distance between engineering ambition and durable cash flow is still wide.

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HEADLINES

• Applied Digital signs a $5.2 billion AI data-center lease: The 15-year take-or-pay agreement covers 210 MW of critical IT load and lifts the company's contracted base-term revenue across five campuses to roughly $36 billion.
• OpenAI explores a 10-gigawatt Ohio campus: The proposed project could cost at least $500 billion, with Nvidia potentially backing OpenAI's lease — another example of how AI demand is pushing financing as hard as technology.
• Robinhood assets climb 48% year over year: Platform assets reached $377 billion in May and equity trading volumes rose 75% from a year earlier, showing retail participation remains strong despite higher market volatility.
• SpaceX fever spreads across Asian proxy trades: Investors are buying ETFs and suppliers linked to Starlink and launch infrastructure, showing how a single mega-IPO can pull capital into an entire thematic ecosystem.
• AI bubble worries move from models to budgets: IBM Consulting says some companies are already hitting annual token limits within months, reinforcing the idea that enterprise AI economics depend on usage costs as much as adoption.

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UPCOMING

• May CPI arrives June 10: Consumer prices are the biggest near-term macro test after oil volatility revived concerns that energy costs could spill into broader inflation.
• Oracle reports June 10: Cloud infrastructure growth and AI-related bookings will provide another read on whether hyperscaler demand is still accelerating.
• May PPI lands June 11: Producer prices will show whether upstream inflation is reinforcing or contradicting the CPI signal.
• SpaceX begins trading June 12: The first public session will test whether extraordinary order-book demand can translate into a stable valuation once the stock begins trading freely.

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DEEP INSIGTHS

SpaceX's Orbital AI Pitch

Reuters' investor-meeting report is useful because it separates the operational timeline from the IPO narrative. SpaceX is pitching orbital compute as a major future business, but the same infrastructure depends on Starship reusability that has not yet been demonstrated at commercial scale.

SpaceX Lockups Turn a Tsunami Into Constant Pounding

Reuters Breakingviews focuses on a less obvious risk in the offering: SpaceX is selling less than 5% of its equity despite enormous demand. A tiny float can support price in the short run, but it also leaves a large pool of existing holders who may eventually want liquidity — turning one giant IPO event into a longer-running supply question.