SpaceX (SPCX) will go public this Friday, July 12th.

If you’re thinking about buying… read this.

Because it turns out most investors don’t know exactly what they’re buying.

SpaceX isn’t a rocket company.

In fact, SpaceX is more of an AI and connectivity company than a rocket company.

Don’t believe me?

The numbers prove it.

Rocket Company?? The Numbers Say Otherwise

SpaceX categorizes its business into three segments:

Space – Designing and manufacturing spacecraft and launch vehicles

Connectivity – Starlink

AI – Grok, X/Twitter, data centers

SpaceX separates its financials by segment in its S-1 document.

SpaceX Revenue by Segment

Connectivity – which is primarily Starlink – dominates the revenue category.

This segment also grew revenue 50% from 2024 to 2025.

Space is a distant second with 22% of 2025 revenue.

But it ‘s a pretty slow growth segment – growing less than 8% from 2024 to 2025.

And management expects Space revenue growth to “continue to be lower than total company revenue growth” going forward.

This isn’t what you’d expect from a rocket company.

AI rounds out the three with 17% of 2025 revenue, growing at 22% year-over-year.

Profits (losses) tell a similar story.

SpaceX Profits by Segment

All of SpaceX’s profits come from Starlink.

The Space segment is relatively flat.

While AI has been the company’s biggest cash drain.

Why is that?

Look no further than capital expenditures…

SpaceX Capital Expenditures by Segment

Capital expenditures (capex) is the money a company spends on long-term assets – like factories, data centers, equipment, or buildings – to grow and maintain its business.

You’d think a rocket company would be investing primarily in its Space segment.

Nope… AI.

Nearly 60% of capex is going towards AI.

Less than 20% is going to Space.

Why is that?

SpaceX Total Addressable Market By Segment

Total Addressable Market (TAM) is the total amount of revenue a company could generate if it captured 100% of its potential market.

In SpaceX’s own filing, it states “We believe we have identified the largest TAM in human history.”

But surprisingly… the bulk of the largest TAM in human history isn’t space…

It’s Enterprise Applications, which is software and AI tools that businesses use to make their employees more productive.

This is the same industry that Anthropic and OpenAI currently dominate.

The Space segment actually has the smallest TAM out of the three.

So much for a “space” company… right?

Today, SpaceX is less of a rocket company and more an AI company and internet provider.

The Space segment is still important.

After all, rockets are what make Starlink possible.

And they eventually could make data centers in space possible, too.

But increasingly, rockets appear to be the infrastructure supporting the rest of the business rather than the business itself.

That’s the part most investors are missing.

When you buy SpaceX on Friday, you’re really buying:

• An AI company disguised as a rocket company.

• An AI company that generates most of the revenue and profits through selling satellite internet.

• A direct challenger to OpenAI, Anthropic, and the broader AI software market.

• Arguably the third (or fourth if you consider Gemini) best AI company today.

• A company spending 60% of its capital investments on AI.

• A business where rockets increasingly serve as infrastructure rather than the end product.

• And perhaps most importantly, a bet that Starlink can continue funding the AI ambitions that management believes represent the largest market opportunity in human history.

This isn’t the company most investors think it is.

Space Week continues tomorrow with my #1 reason to buy SpaceX.

Hint: It has nothing to do with rockets, AI, or starlink.