Elon Musk's SpaceX is venturing into the artificial intelligence sector, estimating a total addressable market of $28.5 trillion, with $26.5 trillion expected from AI. This shift comes as the company prepares for an initial public offering (IPO) this summer, aiming for a valuation of approximately $1.75 trillion. The S-1 filing reveals that more than 90% of the market potential is linked to AI, particularly for businesses, which could account for $22.7 trillion. However, SpaceX's AI unit, acquired through the purchase of xAI, is facing challenges, reporting a significant operating loss of $6.4 billion in 2025, which surpasses the profits from its satellite internet business, Starlink. The company is investing heavily in AI, with $12.7 billion allocated to its AI initiatives, reflecting its commitment to compete in a market currently dominated by companies like Anthropic and OpenAI. Despite the ambitious projections, some analysts express skepticism regarding the feasibility of these valuations.