SynopsisRenowned short seller Jim Chanos questions SpaceX's massive IPO valuation. He believes the company's worth is inflated by future hopes, not current reality. Chanos also expresses skepticism about the data center sector's profitability. Investors are watching closely, especially after past losses betting against tech giants. SpaceX's offering is poised to be the largest ever.ReutersProminent short seller Jim Chanos took aim at the highly anticipated IPO of SpaceX, warning the Elon Musk-led space company's offering is fueled by "hopes and dreams" that do not justify its astronomical valuations.SpaceX is set to go public in New York on Friday following an offering that seeks to raise $75 billion at a valuation of $1.75 trillion. Itis set to be the largest initial public offering, dwarfing the 2019 Saudi Aramco ‌listing by nearly threefold."The ⁠company ⁠is not worth, in my opinion, $1.75 trillion based on any reasonable assumptions over the next five years," Chanos said at an iConnections ​conference in New York on Wednesday.Skepticism over the company's targeted $1.75 trillion valuation, coupled with governance concerns, has led some analysts to ​view it as a logical short.However, several short sellers are wary ofbetting against SpaceX, adopting a wait-and-watch stance, especially after a recent rally in trillion-dollar technology heavyweights - a group SpaceX could join - has inflicted ​steep losses on bearish bets.Chanos voiced a similar opinion when asked if ⁠he would ‌short the company."We really can build whatever stories we want - colonies on Mars, factory ​tunnels, data centers ​in space - to justify the valuation. In bull markets, you put a premium ⁠on promises and in bear markets, you put a discount on ​reality," he said.Shorting Musk's other company, Tesla, has generally been a losing bet. ​On paper, Tesla short sellers have lost $27 billion since June 2021, including both directional bets against Tesla shares and index hedges used to account for Tesla's inclusion in the S&P 500, according to S3 Partners. Over the last 10 years, shares have risen more than 2,500%.Chanos, however, called SpaceX a 'different animal' than Tesla. He pointed out that the space company is being valued at 90 times its sales, compared ‌with Tesla's 14-times multiple.DATA CENTER SECTOR A 'BAD BUSINESS'The veteran short seller also cast doubt on the economics of the data center sector, calling it a "bad business" with low-single-digit ​returns on ​capital.Chanos has been bearish on ⁠data center operators since 2022, arguing that traditional operators and emerging neocloud firms resemble REITs or equipment leasing companies rather than high-growth technology plays.By buying advanced chips from suppliers such as Nvidia and leasing them to ​hyperscalers, these companies face heavy depreciation risks and limited pricing power, he said.Chanos added that such businesses are effectively price-takers and should not command valuation multiples higher than semiconductor makers that control hardware supply.Jim Chanos is a prominent American investment manager and founder of Kynikos Associates. A renowned short seller, he is best known for accurately predicting, and profiting from, the collapse of Enron in 2001.Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless(You can now subscribe to our ETMarkets WhatsApp channel)Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless