Elon Musk Reveals AI Data Center Satellite Design as SpaceX Prepares for Record $1.77 Trillion IPO
June 9, 2026
Elon Musk Reveals AI Data Center Satellite Design as SpaceX Prepares for Record $1.77 Trillion IPO
SpaceX has unveiled the detailed design of its first artificial intelligence data center satellite, a move that underscores the company’s ambition to dominate space-based computing ahead of what is expected to be the largest initial public offering in history. The announcement, made by CEO Elon Musk in a 30-minute video on social media platform X, comes as SpaceX gears up to raise $75 billion at a valuation of approximately $1.77 trillion on June 12.
The satellite, designated “AI1,” is designed to perform complex AI computing tasks in low Earth orbit. It features giant solar panels spanning 70 meters and carries an average computing load of 120 kilowatts, peaking at 150 kilowatts — a power consumption level comparable to Nvidia GB300 racks used in terrestrial data centers. Musk described the design as simpler than the Starlink system, noting that it consists “essentially of a massive number of solar cells, a radiator, and some laser links.” The AI1 satellites will operate at an altitude of approximately 600 kilometers, with a solar array power density of 250 watts per square meter, and require 110 square meters of deployable liquid cooling panels. They can interconnect via laser links and connect to the existing Starlink constellation.
To support the rapid deployment of these satellites, SpaceX plans to build two major manufacturing facilities. In Bastrop, Texas, the company will expand the “Gigasat” factory to over 11 million square feet for producing large-scale solar panels required for AI satellites. Production is expected to begin by the end of 2027, with an annual output of more than 1,000 satellites. Separately, Musk disclosed plans for a “Terafab” chip factory, co-developed by SpaceX, Tesla, and xAI, covering 100 million square feet — roughly 10 times the size of Tesla’s Austin Gigafactory. The facility will use a 2-nanometer process to produce between 100 billion and 200 billion AI chips annually, with the goal of achieving 1 terawatt of computing power. The first phase of the project is estimated to cost approximately $55 billion, with total investment reaching up to $119 billion.
Musk proposed an aggressive timeline: by the end of 2027, SpaceX aims to achieve an annualized deployment of 1 gigawatt of space-based AI computing power, followed by exponential expansion each year to eventually reach 1 terawatt. However, he cautioned investors to take this projection “with a grain of salt,” as the company’s IPO filing offers a more conservative outlook, with initial deployment starting as early as 2028. The rationale for sending data centers into orbit is to bypass terrestrial power bottlenecks. In its IPO filing, SpaceX noted that the total addressable market for AI, valued at up to $26.5 trillion, will be constrained by “access to electricity and water at economically viable prices,” a limitation that space-based solar power could overcome.
SpaceX plans to go public on June 12 with an offering price of $135 per share, issuing 555.6 million shares to raise $75 billion — a global IPO record. The underwriting syndicate is co-led by Goldman Sachs, Morgan Stanley, Bank of America, Citigroup, and JPMorgan Chase. Based on the offering price, Musk’s personal net worth would reach $988 billion, bringing him close to becoming the world’s first trillionaire. On the eve of its listing, SpaceX lobbied index providers for fast-track inclusion in major indices within 10 trading days; however, S&P Dow Jones Indices refused to amend its rules, meaning the company will not join the S&P 500 in the short term. MSCI has confirmed it will follow existing rules, creating conditions for large IPOs to be included in its Global Standard Indices ahead of schedule. SpaceX reported 2025 revenue of approximately $18.67 billion, with a net loss of $4.94 billion. Recent IPO subscriptions have been robust, with orders already reaching $10 billion.
Source: tradingkey
