As anticipation builds around a possible SpaceX IPO later this year, Elon Musk’s rocket company is quietly laying the groundwork for its boldest expansion yet — one that could turn Starlink from an internet service into a full-blown space-powered communications and data empire.
According to people familiar with the plans, SpaceX is exploring a Starlink-branded mobile phone, expanding direct-to-device satellite internet, and launching a new space-traffic tracking service — all powered by its rapidly growing Starlink constellation.
A Starlink Phone? Musk Says “Not Out of the Question”
At the center of the ambition is a potential Starlink phone, a device designed to connect directly to SpaceX’s satellite network rather than traditional cell towers. Sources say the concept has existed internally for years, even if concrete details — such as launch timing or final design — remain unclear.
Musk himself fueled speculation last week when responding to an X post about a hypothetical Starlink phone.
“Not out of the question at some point,” he wrote, adding that it would be “a very different device than current phones”, optimized for high-efficiency AI neural networks rather than conventional mobile computing.
This effort would be separate from Starlink’s existing partnership with T-Mobile, which aims to deliver satellite connectivity directly to existing smartphones. Building its own phone would represent a much bigger leap — and potentially a disruptive one.
Starlink: The Engine Behind SpaceX’s Profits
Starlink has quietly become SpaceX’s financial backbone. Sources say the company generated roughly $15–$16 billion in revenue last year, with about $8 billion in profit, and Starlink accounted for 50% to 80% of that total.
With more than 9 million users worldwide, plus government and military contracts tied to Starlink and the secure Starshield network, SpaceX now operates the largest satellite fleet on Earth — over 9,500 satellites deployed in just six years.
That scale is opening doors far beyond home broadband.
Direct-to-Device Internet: “Cellular Coverage Everywhere”
Roughly 650 Starlink satellites already in orbit are dedicated to SpaceX’s direct-to-device initiative — a system designed to connect ordinary mobile devices directly to satellites without ground infrastructure.
The long-term goal, Musk has said, is nothing less than “full cellular coverage everywhere on Earth.”
This vision depends heavily on Starship, SpaceX’s next-generation rocket. Each Starship launch carrying upgraded Starlink satellites is expected to increase network capacity by more than 20 times, enabling stronger signals capable of reaching phones directly.
Analysts believe the direct-to-device market could be worth billions of dollars in the coming years, though it remains early-stage.
Still, the strategy raises eyebrows among traditional telecom players. SpaceX spent $19.6 billion last year acquiring satellite spectrum from EchoStar — a move some see as a challenge to mobile network operators like Verizon and AT&T.
“It would be very hard for Starlink to make a phone and compete with MNOs,” said Armand Musey of Summit Ridge Group. “It would be like GM making tires and trying to sell them to other carmakers.”
So far, SpaceX has positioned itself as complementary, not competitive — but that balance could shift quickly.
Stargaze: SpaceX Enters the Space Traffic Business
Beyond communications, SpaceX is also monetizing something else its satellites see every day: space traffic.
Last week, the company unveiled Stargaze, a new service that uses cameras already installed on Starlink satellites to track objects in low-Earth orbit — a region growing increasingly crowded and lacking global traffic standards.
While some Stargaze data will be shared for free, the service could become valuable to the U.S. government, including the Pentagon and the Office of Space Commerce, which are racing to improve space situational awareness.
Former Office of Space Commerce chief Richard DalBello said Stargaze could offer fast, high-quality tracking — but warned against relying too heavily on a single provider.
Bigger Than Internet, Bigger Than Rockets
Taken together, the moves point to a larger strategy: turning Starlink into the infrastructure layer for communications, AI data, and space operations, all feeding into Musk’s broader vision — including orbiting data centers tied to SpaceX’s merger with xAI.
If SpaceX does go public, investors may not just be buying a rocket company — but a satellite-powered platform aiming to reshape how humans connect, compute, and operate both on Earth and above it.