SpaceX’s $1.77T IPO Isn’t Just Cash For The Gulf—It Fixes Their Biggest Security Nightmare

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(SeaPRwire) –   By: Arthur Pendelton

Most people think the Gulf’s SpaceX bet is just for profit. They miss the far bigger strategic angle at play. The region’s entire data backbone hangs on a single vulnerable chokepoint. That chokepoint is the Strait of Hormuz, the same route that carries its oil. Recent conflicts have laid this risk bare for all to see.

SpaceX’s upcoming IPO is tipped to be the world’s largest. It carries a projected $1.77 trillion valuation and expects to raise $75 billion. Gulf states were among the earliest investors in SpaceX and xAI. The two firms merged back in early February to form a combined rocket, satellite and AI business. Saudi’s Prince Alwaleed bin Talal holds a 0.63% stake. That stake could hit $10.6 billion if the IPO hits its target valuation. Multiple Gulf sovereign wealth funds hold smaller direct and indirect positions. The IPO will turn their paper holdings into massive immediate gains. Gulf balance sheets have struggled for petrodollars since the Iran war began. This windfall comes at exactly the right time for them.

The gains are just the surface level win for the Gulf. SpaceX plans to use IPO proceeds to launch one million data center satellites. The project puts data centers and power generation in orbit, far from Earth’s constraints. SpaceX says space-based solar and laser comms are eight times more efficient than ground systems. That can produce 100 GW of power, equal to 100 nuclear plants. The technology is still in early stages, per the IPO prospectus. It lines up perfectly with the Gulf’s plan to harden its digital infrastructure. Earlier this year, Iranian drone attacks damaged three AWS data centers in the region. The Strait of Hormuz blockade already showed subsea cables are just as vulnerable as oil tankers. Starlink already works as a reliable backup during outages and conflicts.

The global internet will split along geopolitical blocs, one satellite constellation at a time.

Author bio: Arthur Pendelton, expert on global internet routing architecture and serves on leading global technical governance research boards.