xAI burned $6.4B in 2025, SpaceX IPO filing reveals massive AI spending
Original: xAI burned $6.4B last year — SpaceX’s IPO filing shows why the spending is far from over
Why This Matters
Reveals scale of AI infrastructure investment needed for next-generation models
Elon Musk's xAI lost $6.4 billion on $3.2 billion revenue in 2025, up from $1.56 billion losses in 2024. SpaceX IPO filing shows plans to scale Grok AI to trillions of parameters, requiring significant compute investment.
SpaceX's IPO filing revealed xAI's first public financials after Musk merged the AI company with SpaceX in February. xAI losses grew from $1.56 billion in 2024 to $6.4 billion in 2025, while revenue increased from $2.62 billion to $3.2 billion. The company recorded 117 million monthly active users for Grok AI features out of 550 million total users. AI segment capital expenditures reached $7.7 billion in Q1 2026 alone, representing a $30.8 billion annualized run rate. SpaceX plans to scale Grok to 'multiple trillions of parameters' and expand AI compute infrastructure through Colossus data centers providing 1 gigawatt of power. Revenue sources include $365 million from X and Grok subscriptions, $88 million from data licensing, and $116 million from advertising.