Elon Musk’s SpaceX is raising up to $1 billion at $44 billion valuation

Space Exploration Technologies, Elon Musk’s reusable rocket and satellite internet venture, is in talks to raise $500 million to $1 billion in series N funding at a valuation of $44 billion, according to documents reviewed by CNBC and people familiar with the company’s fundraising activity. 

The funding would help SpaceX begin commercial operations of its Starlink satellite broadband service and to conduct suborbital and orbital test flights of its Starship and SuperHeavy booster launch vehicle. Bloomberg previously reported on the fundraising plans.

SpaceX is telling investors its Starlink business is going after a $1 trillion total addressable market — including bringing satellite broadband to any location on Earth, to ships at sea and aircraft in flight. The company has launched more than 450 satellites since after first deploying constellations of satellites for Starlink in November. Company officials expect to start generating revenue from the service this year.

SpaceX aims to make interplanetary transportation from the Earth to the moon and Mars a reality with its reusable rockets. The company also has ambitions to use Starship for rapid long-distance air travel on Earth, making long-haul flights in under an hour.

SpaceX previous investors included those who backed Musk’s car company, Tesla. Shared investors have included Peter Thiel’s Founders Fund, Baillie Gifford and Valor Equity Partners. SpaceX has a myriad of other investors, including Fidelity, Gigafund and Google.

Gigafund, which was founded by SpaceX board member Luke Nosek, is expected to participate significantly in the new round.

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