Alex Karp: ‘Rooting for’ SpaceX but don’t buy IPO

Palantir CEO Alex Karp told an interviewer he was ‘rooting for’ SpaceX ahead of the company’s planned near-$1.8 trillion IPO, praising Elon Musk’s ability to deliver engineering results while stopping short of urging investors to buy at the proposed price.

Karp, whose firm has worked with SpaceX on defense proposals including the Golden Dome missile protection initiative, framed his remarks as support for Musk’s track record rather than a market recommendation. He added: “Bullish on Elon in space? Yes. Bullish on space? No idea.”

SpaceX is targeting a valuation close to $1.8 trillion. The company reported $18.7 billion in revenue last year, a 33% increase from the prior year. Starlink generated more than $11 billion and serves over 10.3 million subscribers; it is the only division SpaceX reports as profitable.

The IPO price implies a trailing price-to-sales ratio near 95. For comparison, Nvidia trades at about 23 times sales and Palantir at roughly 73 times sales. One research firm estimated a fair value for SpaceX at about $780 billion, below the company’s IPO target.

SpaceX reported an operating loss of $2.6 billion for 2025, a figure largely tied to spending on its xAI work. The company is advancing capital-intensive projects including Starship development and further Starlink expansion, which will affect future cash flow and profitability.

Demand for the IPO was reported at roughly four times oversubscribed. One analyst projected the stock could fall to as low as $75 in the weeks after its debut if growth expectations are not met.

Karp did not indicate that he or Palantir planned to buy shares at the IPO price. He described his position as that of a partner and admirer rather than a financial endorsement.

His comments distinguished praise for SpaceX’s technical achievements from a recommendation to invest at the proposed valuation.