Sources indicate that SpaceX is planning an initial public offering (IPO) this year. Its core revenue-generating business, Starlink, is exploring expansion into new markets, including the development of a dedicated Starlink mobile phone, direct-to-device internet services, and space tracking services.
As a central part of Elon Musk's business empire, SpaceX continues to build momentum through Starlink's rapid satellite production capabilities and reusable rocket technology. These technological foundations are key to Musk's vision of establishing data centers in low-Earth orbit—an ambitious and costly endeavor that also underpins the recent announcement of a merger with artificial intelligence firm xAI.
According to three individuals familiar with the matter, SpaceX's new strategy includes a mobile device that will connect directly to the Starlink satellite constellation, potentially competing with traditional smartphones.
Specific design details and a development timeline for the device have not been finalized. It is noteworthy that Starlink already has a partnership with T-Mobile to enable direct satellite connectivity for the carrier's phones; the plan to develop its own phone represents a distinct and separate business initiative.
Insiders noted that SpaceX has been considering this mobile phone project for several years. Last week, after a user on the X platform speculated about a potential Starlink phone, Musk responded that it was "not entirely out of the question in the future."
He added that the device would be fundamentally different from existing phones, with its design optimized specifically for "maximum efficiency neural network" processing. This refers to the hardware systems that power artificial intelligence, which are inspired by the human brain.
Starlink serves as the primary revenue driver for SpaceX. Two sources revealed that in 2025, the company generated between $15 billion and $16 billion in revenue with approximately $8 billion in profit. Starlink contributed 50% to 80% of total revenue, solidifying its role as the main profit center.
In 2025, SpaceX made its largest investment to date in cellular communications by acquiring satellite spectrum from EchoStar for $19.6 billion. Although some analysts view this move as a competitive threat to major mobile network operators like Verizon and AT&T, SpaceX currently positions itself as a complement to these traditional networks.
Armand Musey, President of Summit Ridge Group, commented, "Developing its own phone and competing directly with mobile operators would be extremely challenging for Starlink—other carriers would likely avoid using the device. It's akin to General Motors producing tires and trying to sell them to other car manufacturers."
SpaceX is now the world's largest satellite operator, with its Starlink broadband internet service exceeding 9 million users. The company also holds government contracts related to Starlink and official partnerships for its military-grade satellite network, Starshield.
The development of a proprietary mobile device represents a significant expansion of SpaceX's Starlink product lineup. In just six years, Starlink has deployed a constellation of approximately 9,500 satellites, opening up new market opportunities for the company.
Currently, around 650 Starlink satellites in orbit are specifically designed to support the company's emerging direct-to-device service. In a recent post on the SpaceX blog, Musk stated that the ultimate goal of this service is to achieve "complete global cellular coverage everywhere."
Aligning with the vision for low-Earth orbit AI data centers, the upgrade of Starlink to a cellular-like communication system heavily relies on the Starship rocket. This vehicle is capable of launching upgraded Starlink satellites in large batches, with performance sufficient to deliver enhanced internet services directly to mobile phones.
Musk claimed that each future Starship mission dedicated to Starlink satellite deployment could increase the constellation's communication capacity by more than twentyfold.
Although the direct-to-device market is still in its early stages, analysts project it will grow into a multi-billion dollar industry in the coming years.
In October 2025, SpaceX filed a trademark application for "Starlink Mobile." In 2026, the company submitted several patent applications aimed at improving connectivity between the Starlink network and small terrestrial mobile devices, including those not exclusively designed as Starlink user terminals.
Building on the Starlink infrastructure, SpaceX recently introduced a new service called "Stargaze" for space tracking. This service will utilize small maneuverable cameras already installed on Starlink satellites to monitor the increasingly crowded satellite traffic in low-Earth orbit—a domain that currently lacks a unified international space traffic management standard.
SpaceX stated that it will provide some tracking data free of charge to satellite operators. The service is of particular interest to the U.S. government, as the Department of Defense and the Office of Space Commerce are collaborating with several U.S. space-tracking startups—which use ground-based radar—alongside SpaceX to enhance space situational awareness capabilities.
However, SpaceX's move into low-Earth orbit tracking via Starlink has raised concerns among some industry professionals, who worry that the U.S. government's primary space tracking system may become overly dependent on the company.
Richard DalBello, former director of the Office of Space Commerce, acknowledged that Stargaze could provide effective space tracking services for low-Earth orbit systems. However, he also cautioned that the U.S. government should not rely on it as its sole source of tracking data.
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