Elon Musk stated that SpaceX significantly underestimated its total addressable market (TAM) in recent IPO documents. While the company initially valued its market potential at $28.5 trillion, Musk noted via X that the actual figure is substantially higher, though he did not provide a specific revised estimate.
SpaceX is expanding its focus beyond launch services and Starlink satellite internet into AI computing infrastructure. The company is developing large-scale data centers, including the Colossus project in Memphis. Plans for Colossus 2 include the addition of approximately 660,000 Nvidia Blackwell GPUs by the end of the year, supplementing the 550,000 GB300 and GB200 accelerators already in operation.
The company is also pursuing the Starmind project, which aims to deploy computing systems directly on satellites. SpaceX intends to launch the first of these units by late 2027 and is collaborating with Nvidia to adapt the Vera Rubin platform for orbital use. This initiative is part of a broader strategy to compete with major AI infrastructure providers.
In the IPO documentation, the AI sector accounts for the largest share of the projected market at $26.5 trillion, while telecommunications services are valued at $1.6 trillion. Other industry leaders have also projected massive market sizes: AMD CEO Lisa Su estimated the data center AI accelerator market at $1.5 trillion, and Nvidia has reported a backlog of orders worth roughly $2 trillion.
