SpaceX, the aerospace and satellite communications company led by Elon Musk, has informed its employees that it plans to repurchase insider shares in a transaction that would place the company’s valuation at approximately $800 billion. The move, announced on Friday, also signals that the company is actively preparing for a possible initial public offering as early as next year.

In a letter sent to employees and existing shareholders, SpaceX Chief Financial Officer Bret Johnsen explained that the company, together with select investors, intends to acquire $2.56 billion worth of shares from current stockholders. The proposed price is set at $421 per share, nearly twice the level of SpaceX’s previous internal valuation. The letter, later obtained by The New York Times, also touched on the possibility of a future public listing.

Johnsen cautioned that many uncertainties remain around any potential IPO, including its timing and valuation. However, he suggested that strong execution combined with favorable market conditions could allow SpaceX to raise substantial capital through a public offering.

If completed, the share buyback would make SpaceX the most valuable privately held company in the world, surpassing artificial intelligence firm OpenAI, which is currently valued at around $500 billion. A future IPO would likely rank among the largest public listings in history and could generate enormous wealth for the company’s shareholders.

SpaceX did not immediately respond to requests for comment regarding the transaction.

Founded by Musk in 2002, SpaceX has grown into a dominant force in the global space industry, largely due to its reusable rocket technology and its rapidly expanding Starlink satellite internet network. Alongside Tesla, SpaceX represents a cornerstone of Musk’s business empire and a major source of his influence and wealth. The company also maintains close relationships with NASA, the Pentagon, and other government agencies, making it a key player in U.S. national security and space infrastructure.

Musk, who stepped down from his role as a close adviser to President Trump in late May, has long articulated ambitions that extend far beyond Earth orbit. Central to those plans is Starship, SpaceX’s massive next-generation rocket designed to transport humans to Mars. The company also holds a multibillion-dollar contract with NASA to carry astronauts to the Moon, and Musk has spoken publicly about establishing a lunar outpost known as Moonbase Alpha. However, progress on the lunar program has reportedly fallen behind its original schedule.

Over the years, SpaceX has raised billions of dollars from major investors such as Founders Fund and Alphabet, Google’s parent company. Despite this, Musk remains the company’s largest individual shareholder, owning about 44 percent of SpaceX as of 2022.

On X, the social media platform he owns, Musk has previously hinted that SpaceX’s debut on public markets could come sooner rather than later. Historically, he has been outspoken in his criticism of public markets, particularly after clashes with analysts and short sellers. In 2018, he even suggested taking Tesla private during a period of intense scrutiny.

Recently, Musk secured a new compensation plan at Tesla that could ultimately be worth up to $1 trillion, a development that appears to have eased some of his earlier reservations about public financing. As SpaceX seeks additional funding to support its long-term vision, the company’s leadership now seems more open to the opportunities that a public offering could provide.

In his letter, Johnsen emphasized that access to public capital markets could dramatically expand SpaceX’s capabilities. He noted that additional funding would allow the company to dramatically increase Starship launch frequency, deploy artificial intelligence data centers in space, accelerate the construction of Moonbase Alpha, and support both crewed and uncrewed missions to Mars. According to Johnsen, these efforts ultimately aim to bring humanity closer to becoming a multi-planetary species within our lifetime.