According to reports citing informed sources, Starlink, the satellite internet subsidiary of SpaceX—the space exploration giant founded by Elon Musk with a valuation reaching $1.5 trillion—may soon enter the smartphone market and global consumer communication services on a large scale. The company is reportedly planning to offer direct-to-device internet services and a space-based tracking service.
At least three sources familiar with the matter indicated that the plan includes developing a high-performance mobile device capable of connecting to the Starlink satellite constellation, potentially competing directly with conventional smartphones. Specific design details and Musk’s broader product development strategy for mobile devices remain undisclosed.
Insiders revealed that the rocket and satellite company has been working on significant smartphone-related initiatives for years. Last week, when asked on X whether a Starlink phone might be in the works, Musk responded, “It’s not impossible at some point.” He has previously described the envisioned device as fundamentally different from current smartphones, emphasizing that it would be “fully optimized for neural network performance per watt.”
For Starlink, the most feasible short-term approach may involve scaling satellite-direct connectivity through partnerships—similar to T-Mobile’s model of using satellites as a final layer of coverage—while launching more robust proprietary services for specific use cases such as extreme outdoor environments, emergency response, military, maritime, and remote areas. A “Starlink phone” would likely aim to integrate consumer satellite communication into an end-to-end network-constellation system while offering differentiated capabilities for AI workloads, as suggested by Musk’s focus on neural network efficiency.
Starlink serves as SpaceX’s primary revenue driver and a crucial profit generator. Last year, the unit reportedly contributed between 50% and 80% of SpaceX’s total revenue, which reached $15–16 billion with profits estimated at around $8 billion.
In a related strategic move, SpaceX recently announced the acquisition of xAI, an artificial intelligence startup founded by Musk and viewed as a strong competitor to OpenAI. This acquisition positions SpaceX as a super-technology conglomerate spanning commercial aerospace, computing power, AI models, and social media distribution via X.
Musk’s current focus is believed to be shifting toward SpaceX’s planned mid-June initial public offering, which could become the largest IPO in history. The timing of the merger and the new push into mobile and consumer communications may be intended to bolster investor interest ahead of the listing.
Some Wall Street analysts speculate that a merger between Tesla and SpaceX could be Musk’s next strategic move, potentially creating a consolidated “super empire” combining Tesla, SpaceX, and xAI.
Starlink’s interest in smartphones and consumer communications is clearly aimed at elevating SpaceX’s valuation by transitioning from a satellite broadband provider to a global mobile communication platform. This strategy includes strengthening B2B partnerships with telecom operators while exploring direct consumer offerings such as a Starlink-branded smartphone, consumer satellite internet access, and subscription-based space tracking services for government and enterprise clients.
By entering the mobile device and consumer communication markets, SpaceX can present a compelling growth narrative ahead of its IPO—one that combines recurring revenue streams, a large total addressable market, and high-margin data services. This shift also re-anchors SpaceX’s valuation from project-based aerospace manufacturing toward a platform-based communication business with recurring sales, subscription revenue, and network effects.
As direct-to-device technology evolves from basic messaging to higher-bandwidth voice and data services, Starlink’s valuation model could come to resemble that of a global telecom operator combined with a satellite cloud-network platform and a hardware business—a combination likely to attract higher multiples from investors.
According to earlier reports, SpaceX is considering a public listing around June, potentially raising up to $50 billion and reaching a valuation near $1.5 trillion—close to Tesla’s $1.6 trillion market cap. A merger of Tesla, SpaceX, and xAI could ultimately form a unified “Musk super empire,” shaping the long-term trajectory of all three companies.
Significant developments at SpaceX—such as IPO progress, Starlink growth, and advances in orbital AI computing infrastructure—are expected to reinforce market confidence in Musk’s execution capabilities and risk appetite. This, in turn, may positively influence Tesla’s long-term valuation and narrative.
As power supply and deployment emerge as the primary bottlenecks for global AI data centers—surpassing AI chip shortages—SpaceX’s vision of deploying solar-powered data centers in orbit is entering an experimental phase. This ambitious concept requires larger, more stable capital pools and a unified corporate structure.
During recent earnings calls, Musk has highlighted advances in large-scale energy storage, artificial intelligence, full self-driving technology, Robotaxi services, and the Optimus humanoid robot. These developments suggest he is weaving together a coherent, investable narrative around a vertically integrated chain spanning commercial spaceflight, satellite communications, orbital AI computing, energy storage, electric vehicles, autonomous driving, and robotics.
By unifying AI, communications, space, energy, and robotics into a single full-stack infrastructure platform, Musk may enhance the pricing of SpaceX’s IPO, elevate Tesla’s valuation, strengthen investor appeal, and streamline the narrative presented during roadshows.
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