Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.

Elon Musk’s SpaceX is barreling toward what may become the largest IPO in history, and one MIT professor says the whole thing reads like a Jekyll and Hyde story.

Sinan Aral, an MIT Sloan professor and director of the MIT Initiative on the Digital Economy, told CNBC THursday the deal is either a brilliant vertical integration play or an expensive cover for weaker brands.

In the bull case, SpaceX supplies the space compute, xAI the model, Starlink the network, and X the consumer reach. In the bear case, investors are buying a fourth-tier AI model and an overpaid social network wrapped inside a real rocket company.

Don't Miss:

A single bad hire can set a startup back years. Here are the 5 hires founders most often misjudge — and why

Still Learning the Market? These 50 Must-Know Terms Can Help You Catch Up Fast

Aral’s skepticism centers on a paper trail of climbing numbers. When Musk folded X into xAI, the AI firm was valued near $80 billion and X around $33 billion, even though earlier shuffles had implied a $250 billion tag on xAI.

Those figures keep ratcheting up as the companies roll together. The question, Aral said, is whether that reflects real synergy or valuations stretched past what the assets justify.

One number suggests the demand is real. Anthropic has agreed to pay roughly $1.25 billion a month for SpaceX’s Colossus compute capacity, a deal that could deliver up to $45 billion through May 2029.

That contract may turn the AI segment from a cost center into a revenue engine, but Aral’s worry is the model itself. He pegged it as a third- or fourth-tier product, and Grok has bled users to Claude and ChatGPT even as the compute around it scales.

Trending: Avoid the #1 Investing Mistake: How Your ‘Safe' Holdings Could Be Costing You Big Time

The interview surfaced growing market rumors that SpaceX will eventually swallow Tesla to complete Musk’s vertical loop. Aral did not dismiss the theory.

Tesla’s millions of cars generate the kind of real-world driving video needed to train self-driving and robot models, and a combined company could run all of it on SpaceX’s compute and Starlink network. Aral said an integration like that would face virtually no competitors at its scale.

Dan Ives of Wedbush expects the two to merge eventually.

Kalshi thinks there is a 60% chance of a merger before May 1 2027.

See Also: Skip the Regrets: The Essential Retirement Tips Experts Wish Everyone Knew Earlier.

SpaceX is targeting a $1.75 trillion valuation when it lists on the Nasdaq under the ticker SPCX around June 12, according to its S-1.

On Polymarket, the SpaceX IPO closing market cap above $2 trillion carries roughly a 78% chance.

Musk is already favored to become the world's first trillionaire before New Year's, but a pay package buried in SpaceX's S-1 filing last week could push him toward $2 trillion if he delivers a Mars colony.

Aral declined to say whether he would buy the IPO, noting only that people have bet against Musk before and lost.

Image: Shutterstock

Read Next: Think you're saving enough for your kids? You might be dangerously off — see why

Building a resilient portfolio means thinking beyond a single asset or market trend. Economic cycles shift, sectors rise and fall, and no one investment performs well in every environment. That's why many investors look to diversify with platforms that provide access to real estate, fixed-income opportunities, professional financial guidance, precious metals, and even self-directed retirement accounts. By spreading exposure across multiple asset classes, it becomes easier to manage risk, capture steady returns, and create long-term wealth that isn't tied to the fortunes of just one company or industry.

RAD Intel is an AI-driven marketing platform helping brands improve campaign performance by turning complex data into actionable insights for content, influencer strategy, and ROI optimization. Positioned within the multi-hundred-billion-dollar digital marketing industry, the company works with global brands across sectors to improve targeting precision and creative performance using its analytics and AI tools. With strong revenue growth, expanding enterprise contracts, and a Nasdaq ticker reserved under $RADI, RAD Intel is opening access to its Regulation A+ offering, giving investors exposure to the growing intersection of AI, marketing, and creator economy infrastructure.

Backed by Jeff Bezos, Arrived Homes makes real estate investing accessible with a low barrier to entry. Investors can buy fractional shares of single-family rentals and vacation homes starting with as little as $100. This allows everyday investors to diversify into real estate, collect rental income, and build long-term wealth without needing to manage properties directly.

Lightstone DIRECT gives accredited investors access to institutional-quality multifamily real estate opportunities backed by a vertically integrated operator with more than $12 billion in assets under management and a 40-year track record. With more than 25,000 multifamily units nationwide — including significant exposure to low-supply Midwest markets where rent growth has remained resilient — Lightstone is positioning investors to benefit from tightening housing supply, strong occupancy trends, and long-term rental demand. Through Lightstone DIRECT, individuals can co-invest alongside the firm, which commits at least 20% to each deal, offering exposure to professionally managed multifamily assets designed to generate durable income and long-term appreciation beyond the traditional stock market.

AdviserMatch is a free online tool that helps individuals connect with financial advisors based on their goals, financial situation, and investment needs. Instead of spending hours researching advisors on your own, the platform asks a few quick questions and matches you with professionals who can assist with areas like retirement planning, investment strategy, and overall financial guidance. Consultations are no-obligation, and services vary by advisor, giving investors a chance to explore whether professional advice could help improve their long-term financial plan.

Accredited Debt Relief is a debt consolidation company focused on helping consumers reduce and manage unsecured debt through structured programs and personalized solutions. Having supported more than 1 million clients and helped resolve over $3 billion in debt, the company operates within the growing consumer debt relief industry, where demand continues to rise alongside record household debt levels. Its process includes a quick qualification survey, personalized program matching, and ongoing support, with eligible clients potentially reducing monthly payments by 40% or more. With industry recognition, an A+ BBB rating, and multiple customer service awards, Accredited Debt Relief positions itself as a data-driven, client-focused option for individuals seeking a more manageable path toward becoming debt-free.

Finance Advisors helps Americans approach retirement with greater clarity by connecting them to vetted, fiduciary financial advisors who specialize in tax-aware retirement planning. Rather than focusing on products or investment performance alone, the platform emphasizes strategies that account for after-tax income, withdrawal sequencing, and long-term tax efficiency—factors that can materially impact retirement outcomes. Free to use, Finance Advisors gives individuals with meaningful savings access to a level of planning sophistication historically reserved for high-net-worth households, helping reduce hidden tax risk and improve long-term financial confidence.

Immersed is a spatial computing company building immersive productivity software that enables users to work across multiple virtual screens inside VR and mixed-reality environments. Its platform is used by remote workers and enterprises to create virtual workspaces that reduce reliance on traditional physical hardware while improving focus and collaboration. The company is also developing its own lightweight VR headset and AI productivity tools, positioning itself in the future-of-work and spatial computing space. Through its pre-IPO offering, Immersed is opening access to early-stage investors looking to diversify beyond traditional assets and gain exposure to emerging technologies shaping how people work.

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.