Scott Galloway Calls SpaceX Incredible Company With 'Bigger Moat' Than OpenAI, But Refuses To Invest In It

Scott Galloway, a bestselling author and NYU professor, has expressed his disinterest in investing in SpaceX‘s potential IPO, citing the controversial business practices of Elon Musk.

Why Galloway Won't Buy the SpaceX IPO

Speaking on his Prof G Markets podcast on Thursday, Galloway sharply criticized Musk and his business model, saying he reduces media outlets to extreme, sensationalized content hubs and cited this as a reason for not being interested in a SpaceX IPO investment.

Despite his reservations, Galloway acknowledged SpaceX’s remarkable achievements, including its status as the sole company capable of sending individuals into space and its dominance in the low Earth orbit satellite market.

“SpaceX only did 13 billion last year and this year it’s only going to do $15 billion,” spoke Galloway about the company’s revenue.

Galloway stated that OpenAI is growing “much faster” than SpaceX at a similar revenue multiple but is “much more vulnerable” to open-weight LLMs, Chinese AI, and other competitors such as Alphabet‘s Google (NASDAQ:GOOGL) (NASDAQ:GOOG).

The entrepreneur also highlighted SpaceX’s significant cost reductions in space travel, a feat that has contributed to the company’s success. He contrasted the space company’s growth with that of digital companies, noting that while digital companies may scale faster, analog companies like SpaceX “have much bigger moats.”

Galloway’s comments come amid widespread speculation about SpaceX’s potential IPO. Musk recently confirmed these speculations, suggesting that the rocket company is indeed preparing for an IPO.

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Tech IPO Momentum Builds With SpaceX

Reports suggest SpaceX may pursue an IPO raising over $30 billion, potentially breaking Saudi Aramco's 2019 record. At a projected $1.5 trillion valuation, SpaceX would become one of the world's most valuable companies, surpassing Musk’s Tesla (NASDAQ:TSLA) with a $1.41 trillion market cap.

SpaceX’s IPO would also add to the growing list of tech companies going public, including Amazon-backed Anthropic. Anthropic has reportedly begun early IPO preparations as it pursues a new funding round that could raise its valuation above $300 billion. The move marks a major step toward a potential public listing as early as 2026.

While there is also a lot of buzz around OpenAI ‘s IPO, Galloway previously warned of its potential collapse. He noted that AI has driven about 80% of market gains since ChatGPT's 2022 launch, making the system highly vulnerable. Co-host Ed Elson pointed to financial red flags, saying that despite OpenAI generating around $13 billion in annual recurring revenue, its spending is more than double that amount.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.