Elon Musk’s SpaceX has confidentially filed for an IPO with the Securities and Exchange Commission, sources told CNBC’s David Faber, bringing Elon Musk’s rocket company one step closer to what’s expected to be a record public offering.

Bloomberg was first to report on SpaceX’s confidential filing, citing people familiar with the matter, and adding that the company could seek a valuation of $1.75 trillion, with a listing around June.

Founded by Musk in 2002 to develop and operate reusable rockets, SpaceX has turned into NASA’s biggest launch partner after the agency ended its space shuttle program in 2011. The company merged with Musk’s xAI in February, creating a combined entity that he valued at the time at $1.25 trillion.

When SpaceX eventually lists, Musk will become the first person to helm two separate trillion-dollar publicly traded companies. Musk is the world’s richest person, with a net worth of close to $840 billion, according to Forbes. Tesla, which Musk has counted on for the vast majority of his liquid wealth, has a market cap of around $1.4 trillion.

A confidential filing allows companies to submit their financials to the SEC for regulatory review before revealing them to the public and prospective investors. SpaceX will have to release a public filing at least 15 days before its IPO road show.

While SpaceX still has numerous hurdles to clear to reach the public market, the offering — assuming it does happen — will be packed with superlatives. With the company reportedly looking to raise up to $75 billion, it would be more than three times the size of the biggest U.S. IPO to date. China’s Alibaba raised $22 billion in 2014, putting it ahead of Visa, which raised close to $18 billion in 2008.

SpaceX has received over $24.4 billion from its work with the federal government since 2008, according to FedScout, which researches federal spending and government contracts. That includes contracts from NASA, the Air Force and Space Force, among others agencies.

Reena Aggarwal, a professor of finance at Georgetown and an IPO expert, said that even with all hype around Musk and SpaceX, the company still needs a receptive public market. Stocks have been volatile of late due largely to the U.S.-Iran war and spiking oil prices. The Nasdaq is coming off its steepest weekly drop in nearly a year.

“You can have a great company, with great fundamentals and a lot of investor interest — and an IPO can still flop if the markets have turned south, if there’s too much volatility in the market,” Aggarwal said. Hopefully the current geopolitical situations will have cooled down by June and there will be less uncertainty.”

WATCH: SpaceX has filed confidentially for IPO

Oracle rose in premarket trading on Wednesday as the multinational tech conglomerate looks to cut thousands of jobs to free up cash to build AI data center infrastructure.

The software giant has started telling its 162,000-strong workforce that thousands of people will be affected in a new round of layoffs, two people familiar with the matter told CNBC on Tuesday. Its shares were last up 2.6% in early market trading on Wednesday. Oracle declined to comment on CNBC’s report.

Investors remain uneasy about the company’s hefty capital expenditure on data centers that can handle AI workloads. While shares closed up nearly 6% Tuesday, Oracle’s stock is down roughly 25% so far this year.

The company announced plans in early February to fundraise up to $50 billion during the 2025 calendar year through a mixture of debt and equity, to expand capacity for contracted cloud demand from customers, including Nvidia, Meta, OpenAI, Advanced Micro Devices and xAI.

Major AI hyperscalers Alphabet, Microsoft, Meta and Amazon have also committed to capital expenditure of nearly $700 billion to fund their AI buildouts this year, which has alarmed investors as it will reduce the companies’ free cash flow without a clear promise on near-term returns.

Job cuts at Oracle will help free up cash flow, Barclays analysts said in a note on Thursday. The investment bank said it is its overweight rating of the stock.

“Given ORCL’s existing FY26 Restructuring Plan and prior reports, we do not see today’s layoffs as being a surprise to the market, which seemed to have appreciated the cost savings potential from ORCL’s actions amidst the company’s rapid build-out of AI infrastructure capacity,” the analysts said.

Barclays also highlighted that Oracle generates less profit per employee than its competitors, with workers less productive compared to the average. The analysts expect that Oracle will triple its revenue over the next few years due to minimal headcount growth and low operating costs.

Microsoft just closed out its worst quarter on Wall Street since the 2008 financial crisis, as investors soured on the software giant’s prospects in artificial intelligence.

The company’s stock plunged 23% in the first quarter, a steeper drop than any of its tech peers or the Nasdaq, which fell 7% in the period. Microsoft bounced back a bit on Tuesday, alongside a broader market rally, with shares of the company gaining 3.3%, the biggest jump since July.

While Microsoft remains dominant in workplace productivity software and through its Windows operating system, the company is facing twin pressures to grow efficiently in AI while also building out its cloud AI infrastructure to support soaring demand.

Oil prices are surging because of the Iran war, potentially driving up costs for building and running data centers. And on the product side, Copilot, Microsoft’s AI assistant, has yet to show a lot of traction as users flock to competitive services from Google, OpenAI and Anthropic.

“Redmond is in a pickle,” wrote Ben Reitzes, an analyst at Melius Research, in a note on March 23, referring to Microsoft’s headquarters in Washington state. Reitzes, who has a hold rating on the stock, said the company has to use valuable capacity from its Azure cloud to fix Copilot, but has no choice “since Copilot is needed to maintain momentum in its most profitable and largest segment.”

Microsoft declined to comment.

Meanwhile, software stocks are getting pummeled as part of an AI-inspired “SaaSpocalypse” that has pushed names like Adobe, Atlassian and ServiceNow down more than 30% this year.

“Much of traditional SaaS is dying/in likely terminal decay,” Jason Lemkin, founder of SaaStr, wrote this week in a post on X, using the acronym for software as a service. In a blog post, he noted that earnings multiples for software trail the S&P 500.

Microsoft’s multiple hasn’t been this low since the fourth quarter of 2022, when OpenAI introduced ChatGPT, according to Capital IQ data.

Gil Luria, an analyst at DA Davidson, told CNBC that the sell-off isn’t justified, and he recommends buying shares. In the latest quarter, Microsoft reported revenue growth of almost 17%, accelerating from a year earlier.

“The dislocation in the fundamental performance of Microsoft and the stock performance of Microsoft, and the valuation of Microsoft, is the biggest it’s been in decades,” Luria said. He said he expects the company’s earnings growth to outpace the broader market this year.

“There is no stickier product in all of enterprise software than Microsoft Windows and Office,” he said.

Microsoft has been trying to build a larger revenue base from productivity software with the Microsoft 365 Copilot AI add-on, but so far, just 3% of commercial Office customers have licenses for it. Luria said he has access to 365 Copilot, but that he’s not a fan. More importantly, he said, Microsoft has pricing power with Office subscriptions. The company announced plans to raise prices in December.

With Copilot struggling to win over users, Microsoft said two weeks ago that Mustafa Suleyman, the former co-founder of AI lab DeepMind who had been running Copilot development for consumers, will focus on building AI models. Microsoft has tasked former Snap executive Jacob Andreou with leading the Copilot experience for consumers and commercial clients.

“Sure sounds like a demotion at best,” former Jane Street trader Agustin Lebron wrote on X. The change followed departures of prominent executives, including gaming chief Phil Spencer and Rajesh Jha, Microsoft’s highest-ranking productivity leader, who’s retiring.

Microsoft is still getting healthy growth out of Azure, which is second to Amazon Web Services in cloud infrastructure. Revenue in the division jumped 39% in the December quarter. Finance chief Amy Hood said in January that growth could have been in the 40s if the company had allocated all of its AI chips to Azure, rather than giving some to teams operating services such as Microsoft 365 Copilot.

Azure is benefiting from a massive backlog of business from OpenAI and Anthropic. Microsoft’s commercial remaining performance obligations at Azure more than doubled in the December quarter from a year earlier to $625 billion.

It’s a reminder that, among tech’s hyperscalers, Microsoft was viewed as an early mover in generative AI due to its 2019 investment in OpenAI and strategic partnership with the startup. But the companies no longer have an exclusive arrangement when it comes to cloud infrastructure and are now competing in a number of areas.

In February, OpenAI announced a service called Frontier that the company said “helps enterprises build, deploy, and manage AI agents that can do real work.”

Microsoft CEO Satya Nadella has been wearing a brave face, promoting the company’s AI enhancements on social media.

“It’s a lot of intense competition, but it’s not so zero-sum, as some people make it out to be,” he said in January.

Aaron Foresman, managing director of equity research at Crawford Investment Counsel, a Microsoft investor, said Nadella’s continuing presence is crucial for the company that he’s been leading since replacing Steve Ballmer in 2014.

“We’ve got a lot of trust and confidence in Satya,” Foresman said.

WATCH: Bank of America’s Tal Liani talks reinstating Microsoft as a ‘buy’

European defense tech startups are ramping up commercial discussions with Middle East governments since the Iran war, company execs told CNBC. Another CEO said interest from Gulf states was “skyrocketing” as they race to bolster measures to counter drone and missile attacks.

Iran has targeted its neighbors since a joint U.S.-Israeli military operation began at the end of February, with more than 3,000 drones and missiles having been fired on the United Arab Emirates, Saudi Arabia, Bahrain and Kuwait, according to data compiled by think tank the Center for Strategic and International Studies.

European startups that develop defense technology, in particular drone and missile interceptors, told CNBC they were increasingly talking with and receiving approaches from Gulf states to supply their militaries. Others are ramping up hiring in the region as they look to meet the demand for their systems.

Earlier this month, the Financial Times reported that the company was in talks to raise new funding at more than a $1 billion valuation.

UK-based startup Valarian, which builds digital infrastructure for sensitive use cases including those in defense, didn’t have defense contracts with Gulf states before the Iran war but has seen commercial discussions with them increase since the conflict began, CEO Max Buchan told CNBC.

Uforce has seen interest from Gulf states in its defense tech “skyrocket” since the beginning of the Iran war, CEO Oleg Rogynskyy told CNBC. Uforce is developing several defense technologies, including counter-uncrewed aerial systems (UAS), maritime and strike drones and battlefield software.

“We’re having a ton of inbound interest,” he said. “Gulf states are coming to us to figure out how to do large-scale, unmanned operations.” That included intercept, de-mining, strike, future convoy and escort and patrol operations at sea, Rogynskyy added.

Uforce has been providing defence tech for Ukrainian operations in the Black Sea, he told CNBC, adding that the lessons from that war “are directly applicable to what is happening in Iran, both from an operational, tactical and strategic perspective.”

“We are looking at the very similar mine and missile-based sea denial from the Iran side, to how Russia prevented Ukrainian grain from being exported, initially.”

Uforce, which raised $50 million at a valuation above $1 billion earlier this month, is now looking to hire a team permanently based in the Middle East, because of the demand caused by the Iran war. The company currently has a Ukrainian delegation in the region, but aims to recruit five to 10 employees in the next few weeks, Rogynskyy told CNBC.

Frankenburg is also looking to build out a Middle East-based team. The startup didn’t have any employees in the region before the war, but is now looking to hire there “significantly,” CEO Salm told CNBC. While the Middle East has been a focus of Frankenburg since the company’s inception in 2024, hiring plans have been accelerated because of the Iran war, he said.

Defense tech startups in Europe have raised record sums in recent years as global geopolitical tensions have risen. The sector picked up $1.8 billion in 2025, according to deal-counting platform Dealroom, nearly three times the previous highest yearly figure, and has already raised $854 million so far in 2026.

The U.K. and Germany have emerged as key hubs of this wave of new defense companies, with France and Ukraine also developing increasingly well-funded startups.

Nebius unveiled plans on Tuesday to build a new AI data center in Finland, which it says will be one of Europe’s largest when up-and-running, as the region races to develop the compute infrastructure needed to power the AI boom.

The new facility will be based in the Finnish city of Lappeenranta with a capacity of up to 310 MW. Nebius said it expects the data center to begin initially supplying customers by 2027.

“We have been building in Finland for many years and are pleased to be expanding our presence here,” said Nebius CEO Arkady Volozh in a statement.

“Lappeenranta represents a significant addition to our global AI infrastructure build-out, and will make a significant contribution to achieving our capacity goals.”

It comes amid a slew of AI infrastructure announcements across Europe.

French AI startup Mistral said Monday it had secured $830 million in debt financing to operate a data center near Paris. That came after a February announcement of a 1.2-billion-euro ($1.38 billion) plan to build data centers and compute capacity in Sweden.

U.K. startup Nscale announced it had raised $2 billion at a $14.6 billion valuation earlier this month, with plans to develop AI data centers in its home market alongside Europe and the U.S. Meanwhile, 2025 saw MGX, Bpifrance, Mistral and Nvidia unveil plans for a 1.4 GW AI campus in France and Brookfield said it would invest up to $9.9 billion in an AI data center in Sweden.

This is a breaking story. Refresh for updates.

French AI startup Mistral said Monday it has secured $830 million in debt financing to fund a data center powered by thousands of Nvidia chips.

Founded in 2023, Mistral is one of the few European startups building foundational AI models, looking to compete with the likes of OpenAI and Anthropic, albeit with a far smaller war chest.

The company has increasingly looked to invest in the infrastructure needed to power AI, and in February it announced a 1.2-billion-euro plan to build data centers and compute capacity in Sweden.

“Scaling our infrastructure in Europe is critical to empower our customers and to ensure AI innovation and autonomy remain at the heart of Europe,” said Arthur Mensch, CEO of Mistral, in a statement.

“We will continue to invest in this area, given the surging and sustained demand from governments, enterprises and research institutions seeking to build their own customized AI environment, rather than depend on third-party cloud providers.”

The transaction was supported by a consortium of seven top-tier global banks, including Bpifrance, BNP Paribas, Crédit Agricole CIB, HSBC, La Banque Postale, MUFG and Natixis CIB.

This is a breaking story. Refresh for updates.

Over a decade ago, Meta – then known as Facebook – hired social science researchers to analyze how the social network’s services were affecting users. It was a way for the company and its peers to show they were serious about understanding the benefits and potential risks of their innovations. 

But as Meta’s court losses this week illustrate, the researchers’ work can become a liability. Brian Boland, a former Facebook executive who testified in both trials — one in New Mexico and the other in Los Angeles — says the damning findings from Meta’s internal research and documents seemed to contradict the way the company portrayed itself publicly. Juries in the two trials determined that Meta inadequately policed its site, putting kids in harm’s way. 

Mark Zuckerberg’s company began clamping down on its research teams a few years ago after a Facebook researcher, Frances Haugen, became a prominent whistleblower. The newer crop of tech companies, like OpenAI and Anthropic, subsequently invested heavily in researchers and charged them with studying the impact of modern AI on users and publishing their findings. 

With AI now getting outsized attention for the harmful effects it’s having on some users, those companies must ask if it’s in their best interest to continue funding research or to suppress it. 

“There was a period of time when there were teams that were created internally who could start to look at things and, for a brief window, you had some absolutely outstanding researchers who were looking at what was happening on these products with a little bit more free rein than I understand they have today,” Boland said in an interview.

Meta’s two defeats this week centered on different cases but they had a common theme: The company didn’t share what it knew about its products’ harms with the general public.

Jury members had to evaluate millions of corporate documents, including executive emails, presentations and internal research conducted by Meta’s staff. The documents included internal surveys appearing to show a concerning percentage of teenage users receiving unwanted sexual advances on Instagram. There was also research, which Meta eventually halted, implying that people who curbed their use of Facebook became less depressed and anxious.

Plaintiffs’ attorneys in the cases didn’t rely solely on internal research to make their arguments, but those studies helped bolster their positions about Meta’s alleged culpability. Meta’s defense teams argued that certain research was old, taken out of context and misleading, presenting a flawed view of how the company operates and how it views safety.

“The jury got to hear both sides of the story and a very fair presentation of the facts, and they got to make a decision based on what they saw,” Boland said. “And both juries, with very different cases, came back with clear verdicts.”

Meta and Google’s YouTube, which was also a defendant in the L.A. trial, said they would appeal.