The SpaceX initial public offering (IPO) is nearly upon us.
If you’re interested in participating, or even just following along, it’s critical that you read the company’s IPO prospectus
By reading the prospectus, you’ll encounter many surprising claims. SpaceX, for example, wants to pioneer a “multiplanetary” civilization, powered by orbital data centers, artificial superintelligence, and a permanent human base on the moon. Putting everything together, SpaceX believes that its bold vision provides the largest investment opportunity in history. “We believe we have identified the largest actionable total addressable market in human history,” the SpaceX prospectus reads. “We estimate that our quantifiable TAM is $28.5 trillion.” With a targeted valuation of $1.77 trillion, a potential total addressable market (TAM) of $28.5 trillion looks attractive on paper.
But here’s the thing: Nearly all of that potential growth is reserved exclusively for one business segment. That segment isn’t rockets or satellites — the areas SpaceX is most known for. Instead, SpaceX believes its most promising growth opportunity is artificial intelligence (AI), to which it attributes $26.5 trillion of its $28.5 trillion TAM.