Hyperliquid News Today: SpaceX Targets $800B+ Valuation as Orbital Data Centers Fuel Investor Hype

Elon Musk's SpaceX is embroiled in a high-stakes financial narrative as reports surface of the company seeking an eye-watering valuation during a potential secondary market share sale. The valuation estimates range from $800 billion to as high as $1.5 trillion, surpassing even the most ambitious forecasts in the private equity world. The reports have sparked significant investor interest, with Morgan Stanley highlighting the role of "orbital data centers" as a key factor in the valuation surge.

The idea of space-based data centers leverages the unique advantages of orbit, including extreme cooling and virtually unlimited solar energy. Analysts argue that these features, combined with SpaceX's Starlink satellite constellation, create a compelling case for the company's expansion into computing infrastructure. Morgan Stanley described the concept as a "new AI infrastructure grand narrative" according to analysts.

However, SpaceX has not confirmed the valuation figures. Musk himself denied the $800 billion valuation reports, emphasizing the company's financial stability and ongoing stock buybacks as part of routine employee liquidity provisions as reported. His comments suggest that while SpaceX's valuation is growing, it is driven by operational progress rather than speculative fundraising.

The Orbital Data Center Advantage

Morgan Stanley's analysts outlined four primary advantages of orbital data centers, positioning them as the next frontier in computing infrastructure. The first is extreme cooling. Ground data centers consume nearly 40% of their energy on cooling, while the near-absolute zero temperatures in space offer an unparalleled cooling environment according to research. This translates to massive energy savings and greater efficiency.

The second advantage is unlimited energy. Solar energy in space is more consistent and powerful than on Earth, with nearly 1361 W/m² of solar constant available 24/7, unimpeded by weather or day-night cycles according to experts. This energy source can power high-performance computing operations without the need for traditional infrastructure.

Third, orbital data centers offer global edge connectivity, reducing latency for users around the world. Satellites in low Earth orbit can deliver computing resources to most population centers within milliseconds, enhancing performance of AI and cloud services.

Lastly, SpaceX is in a unique position to capitalize on these opportunities due to its control over 90% of global launch capacity. As Starship and other reusable rockets mature, the cost per kilogram for orbital launches is expected to fall dramatically, enabling large-scale deployment of modular data centers.

Industry Competition and Strategic Moves

While SpaceX is a major player in the space data center arena, it is not the only one. Axiom Space, based in Houston, is developing its own "Orbital Data Center" (ODC) product line, with plans to launch the first two free-flying ODC nodes by the end of 2025. The company has raised over $700 million in funding, signaling significant institutional backing.

Google, too, is making moves. Its Project Suncatcher aims to deploy a constellation of solar-powered satellites equipped with custom TPU hardware to serve as AI data centers. The project is expected to launch prototype satellites in early 2027 and achieve cost parity with ground data centers by the mid-2030s according to plans.

NVIDIA is also positioning itself at the forefront, supplying high-performance GPUs for orbital computing. In a recent collaboration, NVIDIA and Starcloud successfully launched an H100 GPU aboard a test satellite, validating the feasibility of using AI hardware in space.

SpaceX, meanwhile, is expected to use proceeds from its potential IPO to develop and deploy space-based data centers, including purchasing the necessary chips. The company's plans align with its broader vision for Starship, which aims to deliver 1 million tons of payload annually, enabling large-scale computing infrastructure in orbit.

What This Means for Investors

For investors, the implications are profound. A $1.5 trillion valuation would place SpaceX among the world's most valuable companies, rivaling even Saudi Aramco in 2019. However, such a valuation also raises questions about execution risk. The technical and operational challenges of deploying orbital data centers are significant, and while SpaceX has demonstrated prowess in rocketry, computing infrastructure is a different domain.

Analysts at Morgan Stanley, however, remain optimistic. They see SpaceX's valuation growth as a reflection of its progress on Starship and Starlink, as well as the expansion of its addressable market through global direct-to-cell spectrum acquisitions according to Morgan Stanley. The firm's Adam Jonas noted that Musk's response to valuation reports, while subtle, suggests a cautious but confident approach to fundraising according to Morgan Stanley.

Still, the market may remain skeptical. Running multiple trillion-dollar companies, especially in such technically demanding fields, is a heavy lift. Some analysts suggest growing pressure on Musk to focus on one enterprise at a time, with Tesla and SpaceX both demanding his attention according to business reports.

Risks to the Outlook

Despite the enthusiasm, risks remain. Competitors are not standing idle, and the space-based computing market is still in its infancy. Technical barriers—such as deploying and maintaining computing hardware in the harsh conditions of space—remain significant hurdles. Additionally, SpaceX's operational execution, while historically strong, is not immune to delays and cost overruns according to Seeking Alpha.

There are also regulatory and geopolitical uncertainties. Launching and operating orbital data centers will require international cooperation and regulatory approval, complicating the timeline and scope of expansion. Furthermore, the high cost of space infrastructure could deter smaller players from entering the market, but not for long if trends continue according to industry analysis.

The potential for a $2.5 trillion valuation by 2030, as projected by Cathie Wood's Ark Invest, is ambitious and assumes continued technological breakthroughs and market expansion. It also relies on SpaceX maintaining its dominance in launch capabilities and data center deployment according to investment forecasts.

For now, the focus remains on whether the $800 billion valuation—or even the higher estimates—are justified. As Musk's team continues to push the boundaries of aerospace and computing, the world will be watching closely.