SpaceX is preparing to launch what could be the biggest initial public offering in stock market history, targeting a valuation of roughly $1.8 trillion.
The company announced on June 5, 2026, that it had entered into a three-year cloud service agreement with Google LLC, an operating unit of Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL).
Under the terms of that agreement, Google will pay SpaceX a substantial $920 million per month for cloud services over the life of the contract.
The deal arrives at a pivotal moment, as SpaceX’s xAI unit had previously drawn skepticism from investors due to its heavy spending and lack of profitability.
SpaceX’s capital expenditures related to the AI business totaled $12.7 billion in 2025, a figure that has continued to climb and weighed on investor sentiment.
The Google agreement is not the only major contract in play, as SpaceX also recently announced a cloud services deal with Anthropic, the company behind the popular Claude AI model.
The Anthropic deal is worth $1.25 billion per month, making it even larger than the already substantial Google contract.
Combined, the two agreements mean SpaceX is on track to generate significantly more annual revenue from Google and Anthropic alone than all of its businesses produced in 2025.
For context, SpaceX’s total revenue in 2025 reached $18.7 billion, with the Starlink-led connectivity segment contributing $11.4 billion of that figure.
Starlink remains the only segment currently generating positive adjusted earnings before interest, taxes, depreciation, and amortization, making it the financial backbone of the broader business.
The Google and Anthropic contracts could help shift the narrative around xAI, potentially positioning it as a growth engine rather than a costly liability dragging on the company’s investment case.
SpaceX has also cited a total addressable market of $28.5 trillion, with $22.7 trillion of that amount attributed to enterprise applications, a figure that relates directly to the xAI business rather than Starlink or launch services.
The high-profile cloud agreements may provide some credibility to that ambitious market sizing, though analysts remain cautious about the company’s planned valuation.
Morningstar (NASDAQ: MORN) places a more realistic valuation for SpaceX at $780 billion, well below the $1.8 trillion the company is targeting for its IPO.
Morningstar’s analysts have specifically flagged xAI’s competitive moat as uncertain, and the Google and Anthropic contracts do not fundamentally change that assessment, at least for now.
Growth-oriented investors are likely to find the combined Starlink momentum, expanding launch services, and newly validated AI revenue streams compelling ahead of the listing.
However, the gap between SpaceX’s anticipated market cap and analyst estimates of fair value remains a critical consideration for prospective IPO investors.
