Elon Musk's SpaceX is arranging an internal share transaction that would value the rocket and satellite manufacturer at approximately $400 billion, according to people familiar with the matter. This landmark deal would cement SpaceX's position as the world's most valuable private startup while signaling remarkable valuation growth. The transaction price of $212 per share represents a significant premium over December's $185 per-share level, which had valued the company at $350 billion.

SpaceX hasn't commented on the proposed offering. Beyond its headline-grabbing Starship program and workhorse Falcon rockets, the company operates the Starlink satellite internet division. Insider sources indicate Starlink now generates over half of SpaceX's annual revenue.

The arrangement will permit certain shareholders to liquidate their positions—an increasingly common practice among mature private firms seeking to provide exit opportunities for early stakeholders. As part of the transaction, SpaceX will repurchase up to $1.25 billion worth of shares from employees and other investors.

This share sale coincides with Musk's parallel fundraising efforts for his artificial intelligence venture, XAI Holdings, which is reportedly negotiating a $10 billion capital raise that could value the startup at $200 billion.