TNB Tech Minute: SpaceX Spends Heavily Ahead of IPO

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Julie Chang· Host0:15

[upbeat music] Here's your afternoon TNB Tech Minute for Thursday, May 7th. I'm Julie Chang for the Wall Street Journal. SpaceX is spending heavily before its IPO. That includes an estimated fifty-five billion dollars for the Texas-based Terafab chip complex it plans to develop with Tesla, according to local government notices. The company is also funding space infrastructure and potentially sending up to one million AI satellites to low Earth orbit in the years ahead. Some of the developments that SpaceX is looking to fund will take years to complete and present big operational and financial risks. SpaceX didn't respond to a request for comment about its investment plans. The rocket, satellites, and AI company have significant revenue coming in through its space businesses. Last year, the Journal reported it generated eight billion dollars in adjusted earnings on sixteen billion dollars in revenue. Shares for national security satellite company HawkEye 360 jumped in their public market debut, signaling strong investor demand for defense companies. HawkEye stock opened thirty percent above its twenty-six dollar initial public offering price. It priced its offering at the high end of its targeted price range, raising four hundred and sixteen million dollars and