SpaceX is heading towards an IPO (initial public offering) predicted to be the largest ever next month, and now they have received a major boost from the US government.
On May 29, the US Space Force announced that it would spend $4.16 billion on SpaceX as part of a satellite manufacturing contract, which will be part of the air defense and missile system that President Donald Trump calls the "Golden Dome".
This announcement was made after a separate contract that the Space Forces awarded to Elon Musk's company earlier this week, worth 2.29 billion USD. That contract involved SpaceX building a low-altitude Earth orbital communication network.
These contracts reinforce information that was detailed in SpaceX's IPO documents released last week: The company depends heavily on contracts with the government. 1/5 of SpaceX's revenue in 2025 comes from government agencies.
Musk has invested about 300 million USD to help Mr. Trump get elected and still maintain a close relationship with the president. But SpaceX has also dominated the rocket launch market over the past decade.
Therefore, it is not surprising that the federal government continues to turn to SpaceX to sign such contracts. However, the company has warned investors in IPO documents that: "business operations with government agencies may vary depending on policies, priorities, regulations, directives and funding levels".
Previously, according to US media, the company founded by Elon Musk is expected to list shares in mid or late 2026 and set a target of raising 30 billion USD. The company's valuation is said to be expected to reach about 1.5 trillion USD.
