Starlink has quietly become the cash engine powering SpaceX, turning what was once a flashy side project into the main event just as investors eye a blockbuster IPO this summer.
While the company reportedly posted a $5 billion loss last year, that red ink had little to do with rockets or satellites. The culprit? Heavy spending on xAI, Elon Musk’s ambitious AI venture. Strip that away, and SpaceX’s core operations—rockets plus the ever-expanding Starlink constellation—delivered a healthy $6 billion in EBITDA, with Starlink doing the lion’s share of the heavy lifting.
The satellite internet service, once dismissed as an engineering experiment, now dominates revenue and has supercharged SpaceX into the world’s most valuable private company. Analysts point to Starlink as the key to any public offering, with whispers of valuations climbing toward $2 trillion. That’s the kind of number that makes traditional Wall Street types reach for their calculators—and maybe a stiff drink.
Amazon, never one to sit idle while someone else connects the planet, announced on April 14 that it is acquiring satellite firm Globalstar. The move aims to boost its own Leo low-Earth orbit network, adding direct-to-device services and even teaming up with Apple to bring satellite connectivity to certain iPhones and Apple Watches.
It’s a bold swing, yet Amazon’s Leo service remains years behind, with only a handful of satellites in orbit compared to Starlink’s thousands. Competitors in the satellite internet game are either focused on niche commercial uses or still warming up their engines. Promises of service this year sound optimistic when you’re playing catch-up at orbital speeds.
SpaceX enters IPO season looking like the undisputed heavyweight, its valuation dwarfing past offerings thanks largely to Starlink’s momentum. Investors are already buzzing about the potential windfall, while rivals scramble to close the gap without burning through quite as much cash on side projects.
For everyday users, the race means faster, cheaper connectivity in remote corners of the globe—whether you’re streaming from a mountain or checking emails at sea. Just don’t expect the humor to stop when the first Starlink-powered IPO shares start trading; the sky, it seems, is no longer the limit.
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