SpaceX is seeking a valuation of $1.75 trillion, the largest IPO in American history, larger than anything Wall Street has previously been asked to absorb. In inflation-adjusted terms, SpaceX alone would rank second in history, just behind Saudi Aramco. SpaceX, OpenAI, and Anthropic together would raise more money than the entire dot-com bubble from 1995 to 2000.

Source: The Rocket That Runs on Broadband

Financial analyst Paul Kedrosky has a warning about where the money comes from. Most of that money will come from existing holdings. Passive funds will be forced buyers the moment these names enter the indexes, which index rules now accelerate. That means mechanical selling pressure on the same large-cap technology stocks everyone else already owns. Our 401(k) plans are in for a rude awakening.

Source: The Rocket That Runs on Broadband

To troll Microsoft, they have “Macrohard,” a platform under development to emulate digital workflows and create a fully AI-operated software company. If you want to know what a terawatt is, it is in the glossary. This is glorious.

Source: The Rocket That Runs on Broadband

Starlink generated $11.4 billion in revenue in 2025. Operating income was $4.4 billion. Adjusted EBITDA was $7.2 billion, a margin of 63%. Revenue grew 49.8% year over year. Operating income more than doubled.

Comcast, providing cable broadband to 32 million American subscribers for decades, runs EBITDA margins in the mid-30s. AT&T is around 35%. Starlink, which commercially launched its first satellite in 2020, is running circles around both. It is not fiber broadband, but it is not selling that anyway.

Source: The Rocket That Runs on Broadband

By end of 2025, the Starlink constellation had surpassed 600 terabits per second of network capacity. In 2017, the entire global public internet carried roughly 600 to 700 terabits per second. Starlink has now installed equivalent capacity at 25.7 milliseconds of median latency for American users.

For now, Starlink’s workhorse satellite is the V2 Mini. Each delivers approximately 90 gigabits per second of downlink capacity. A Falcon 9 carrying 22 of them adds roughly 2 terabits per second to the network at a marginal launch cost of around $30 million, about $15 million per terabit of installed capacity. Each booster reuse drives that lower. Once the satellites are in orbit, the marginal cost of carrying one more gigabyte approaches zero. Every new subscriber is nearly pure revenue.

The 10.3 million subscribers draw around 1.4 terabits per second on average. Against 600 terabits of installed capacity, that is a utilization rate of one quarter of one percent. Broadband networks are engineered for peak simultaneous demand, not average, so the number is low by design. But it also explains the margin.

Source: The Rocket That Runs on Broadband

At $1.75 trillion, SpaceX is asking investors to price in the orbital data centers, the Mars missions, the chip manufacturing, and the plan to build the infrastructure of a Type II civilization.

Source: The Rocket That Runs on Broadband

One of Om’s best pieces. The note around where the money will come from and the requirement to buy this all in one stock ticker is fascinating. A killer internet / rocket business with AI multiples is another way to think about it.

CNBC reports that OpenAI is right on the heels with a confidential IPO filing scheduled for May 22.