Amazon Dethroned: SpaceX Is Worth More Than the Retail Giant Despite Generating Just a Fraction of Its Revenue

Elon Musk's technology empire has surged into the top tier of global business after a blockbuster takeover sent the newly public company's valuation soaring past a major rival.

The deal marks a dramatic reshaping of the tech landscape, cementing the firm's position among the world's most valuable companies and underscoring investors' growing appetite for Musk's ambitions in AI and beyond.

SpaceX Eclipses Amazon in Global Wealth Rankings

SpaceX, Elon Musk's rocket venture, has officially jumped ahead of Amazon in the global wealth rankings, clinching a spot as the fifth-largest corporation on Earth after its shares went on a massive run.

The company debuted on New York's tech-heavy Nasdaq just days ago in a record-breaking public listing, but its stock has already skyrocketed by more than 50%.

This financial surge has pushed the market value of Musk's aerospace operation to roughly $2.78 trillion (£2.1 trillion), leaving Jeff Bezos's e-commerce and media giant trailing behind at around $2.66 trillion (£1.98 trillion).

The explosive growth in SpaceX's valuation follows the announcement of its $60 billion (£44.69 billion) acquisition of Cursor, a prominent artificial intelligence programming start-up.

According to SpaceX, the transaction involves taking over Anysphere, the parent company behind the AI-powered software engineering assistant.

The Rise of the First Trillionaire

Investors are pouring vast sums into the rocket firm, captivated by its ambitious plans to launch space-based AI data hubs and ultimately establish human settlements on Mars.

The record-breaking stock market debut raised $85.7 billion (£63.83 billion), pushing Musk's personal fortune into historic territory as the world's first trillionaire.

After hitting the trading floor on Friday at an initial price of $135 (£100.54) per share, the stock has already climbed to $209 (£155.66).

However, market experts have expressed doubts about whether such a staggering valuation can be sustained, pointing to major questions surrounding the company's long-term profitability.

While almost everyone interacts with the Amazon brand on a near-daily basis, SpaceX remains far less integrated into the everyday lives of most consumers.

Reality Check Behind the Financial Hype

Even though SpaceX has pulled ahead in market valuation, the actual earnings and profit margins of the two giants remain worlds apart.

Amazon generated $30.3 billion (£22.57 billion) in profit during the first quarter of 2026, while Musk's aerospace company posted a loss of $4.3 billion (£3.2 billion).

Looking back at 2025, Bezos's company generated $716.9 billion (£533.93 billion) in sales, compared with SpaceX's $18.67 billion (£13.9 billion).

Instead, Wall Street appears to be betting heavily on the rocket company's future potential.

Although its core business centres on building and flying reusable spacecraft, the company also develops and deploys Starlink internet satellites while rapidly expanding its footprint in artificial intelligence.

Speaking to the BBC, venture capitalist Eileen Burbidge said many investors appear to be backing a 'well-marketed opportunity' to buy into Musk and his ambitions rather than making decisions based on SpaceX's underlying financial performance.

She suggested trading activity is largely being driven by enthusiasm surrounding Musk's vision, with many investors focusing less on the company's financial fundamentals and more on the prospect of future growth.

Market Risks and the Supply Squeeze

Market observers have also pointed out that a significant supply squeeze is helping drive the stock's performance, as just 4% of the company's total shares are currently available for public trading despite overwhelming investor demand.

Dan Sheehan of Telos Wealth Advisors warned that smaller investors risk overpaying for shares that could lose value if major financial firms decide to sell their holdings.

He noted that smaller investors could 'end up paying a premium for stock now that gets diluted later'.

Inside the $60 Billion Cursor Deal

The relationship between the two companies dates back to April, following an arrangement that gave Musk's enterprise a choice between a straight $60 billion (£44.69 billion) takeover or a $10 billion (£7.45 billion) payout covering their collaborative efforts.

Similar to platforms developed by OpenAI and Anthropic, the software created by Cursor uses artificial intelligence to generate programming code automatically, making it one of the most widely adopted practical applications of the technology today.

The merger comes as SpaceX seeks to close the gap with rivals by scaling up its own AI venture, xAI, the company behind the controversial Grok chatbot.

When the partnership was first announced in April, SpaceX said: 'The combination of Cursor's leading product and distribution to expert software engineers with SpaceX's million H100 equivalent Colossus training supercomputer will allow us to build the world's most useful models.'

The software platform is used by a major corporate client base, including Stripe, Adobe and Nvidia. Nvidia chief executive Jensen Huang has publicly described it as his 'favorite enterprise AI service'.

SpaceX expects the transaction to close before October under an agreement that will compensate Cursor's equity holders entirely with $60 billion (£44.69 billion) worth of aerospace stock.