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Elon Musk\u2019s xAI lost $6.4 billion from operations on just $3.2 billion in revenue in 2025, according to SpaceX\u2019s IPO filings<\/a>. And the losses are poised to grow. SpaceX\u2019s filing reveals plans to scale Grok to \u201cmultiple trillions of parameters,\u201d a dramatic boost that will likely require significant additional compute spend.<\/p>\n Elon Musk merged his AI company xAI \u2014 which had previously acquired his social media platform X (formerly Twitter) \u2014 with his rocket and satellite company SpaceX in February<\/a> before announcing that he\u2019d take the combined company public this year. While AI competitors OpenAI and Anthropic are also eyeing public debuts in 2026, SpaceX\u2019s is expected to be one of the largest in history with a potential $1.75 trillion valuation.\u00a0<\/p>\n The filing<\/a> marks the first public glimpses into xAI, and therefore X\u2019s, financials. In 2024, xAI recorded a loss of $1.56 billion on $2.62 billion in revenue. By 2025, losses had ballooned to $6.4 billion on $3.2 billion, meaning the gap between what xAI earns and spends is widening.\u00a0Meanwhile, competitor (and customer) Anthropic reportedly<\/a> expects a 130% revenue jump to $10.9 billion in the second quarter, leading to its first operating profit.<\/p>\n The jump in revenue from 2024 to 2025 came in large part from \u201cAI solutions and infrastructure revenue\u201d totaling $465 million, which includes $365 million in X and Grok subscription revenue and $88 million in data licensing. An additional $116 million came from advertising.<\/p>\n AI segment capital expenditures climbed from $12.7 billion in 2025 to $7.7 billion in the first quarter of 2026 alone. That\u2019s an annualized capex run rate of about $30.8 billion, more than doubling year-over-year.<\/p>\n So far, that investment has resulted in growing, but still limited, user numbers. Per the filing, SpaceX recorded 117 million monthly active users (MAUs) for Grok AI features as of March 2026, out of 550 million total MAUs across Grok and X combined. That implies only one-fifth of the combined ecosystem is actively using Grok AI features.\u00a0<\/p>\n Still, SpaceX intends to soldier on with Grok; its next-generation AI is expected to scale to \u201cmultiple trillions of parameters,\u201d which the filing describes as a \u201cstep change in reasoning in depth and overall intelligence.\u201d It\u2019s an ambitious target, and one that\u2019s now recorded in the audited annals of SEC history.<\/p>\n It\u2019s also a target that will undoubtedly require more investment. The SpaceX filing\u2019s \u201cuse of proceeds\u201d section mentions an \u201cexpansion of our AI compute infrastructure.<\/a>\u201d Per the filing, xAI\u2019s Colossus and Colossus II data centers \u2014 both of which came online in 122 days and 91 days, respectively \u2014 collectively provide about 1 gigawatt of compute power. These are both used for Grok\u2019s training and inference. SpaceX claims that owning the compute infrastructure and vertically integrating across the AI stack lets them \u201ctrain and iterate frontier models at lower cost and higher velocity.\u201d<\/p>\n Another way that SpaceX might assuage investor fears about spending is by performing training and inference on orbital data centers, which Musk has promised to be a much cheaper alternative to terrestrial data centers. That sci-fi vision isn\u2019t likely to happen for several years, though. The filing says SpaceX intends to begin deploying its orbital AI compute satellites as early as 2028 \u2014 the first concrete timeline set for such a launch.<\/p>\n \u201cThe future of AI will be determined by control of the physical stack,\u201d the filing reads.<\/p>\n<\/div>\n When you purchase through links in our articles, we may earn a small commission<\/a>. This doesn\u2019t affect our editorial independence.<\/em><\/p>\n