SpaceX’s IPO filing says Elon Musk’s xAI had just $3.2 billion in revenue in 2025 and lost $6.4 billion from its operations. And losses are expected to widen further. SpaceX’s filing reveals plans to scale Grok to “trillions of parameters,” which will likely require significant additional computing spending.
Elon Musk announced in February that he would merge xAI, the AI company that had acquired his social media platform X (formerly Twitter), with his rocket and satellite company SpaceX, and then take the combined company public this year. While AI competitors OpenAI and Anthropic are also aiming to go public in 2026, SpaceX’s company is expected to be one of the largest in history, with a potential valuation of $1.75 trillion.
This filing marks the first public disclosure of xAI, and therefore X’s finances. In 2024, xAI recorded a loss of $1.56 billion on revenue of $2.62 billion. By 2025, losses have grown from $3.2 billion to $6.4 billion, meaning the gap between xAI’s revenues and expenses is widening. Meanwhile, rival (and customer) Anthropic reportedly expects second-quarter revenue to rise 130% to $10.9 billion, marking its first operating profit.
The jump in revenue from 2024 to 2025 is largely due to “AI solutions and infrastructure revenue” totaling $465 million, including $365 million in X and Grok subscription revenue and $88 million in data license revenue. Another $116 million came from advertising.
Capital spending in the AI segment increased from $12.7 billion in 2025 to $7.7 billion in the first quarter of 2026 alone. This represents an annual capital expenditure execution rate of approximately $30.8 billion, more than doubling from the previous year.
So far, that investment has increased the number of users, but it remains limited. According to the filing, SpaceX recorded 117 million monthly active users (MAUs) for its Grok AI capabilities as of March 2026, out of a total of 550 million MAUs for Grok and X combined. This means that only one-fifth of the combined ecosystem is actively using Grok AI capabilities.
Still, SpaceX intends to continue working with Grok. The company’s next-generation AI is expected to scale to “trillions of parameters,” which the filing describes as “step changes in the depth of inference and overall intelligence.” This is an ambitious goal, now recorded in the audit records of SEC history.
It is also a goal that will definitely require further investment. The “Use of Proceeds” section of SpaceX’s filing mentions “expansion of AI computing infrastructure.” xAI’s Colossus and Colossus II data centers will come online in 122 and 91 days, respectively, and provide approximately 1 gigawatt of total computing power, according to the filing. Both of these are used for Grok training and inference. SpaceX claims that by owning the computing infrastructure and vertically integrating the entire AI stack, it will be able to “train and iterate frontier models at lower cost and faster speeds.”
Another way SpaceX can ease investors’ fears about spending is by running training and inference in orbital data centers, which Musk promises will be a much cheaper alternative to ground-based data centers. However, that sci-fi vision is unlikely to come to fruition within a few years. The filing states that SpaceX plans to begin deploying in-orbit AI computing satellites as early as 2028, the first concrete schedule set for such launches.
“The future of AI will be determined by the control of the physics stack,” the application states.
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