xAI burned $6.4B last year - SpaceX’s IPO filing shows why the spending is far from over

Key Points:

• Elon Musk’s xAI, now merged with SpaceX, reported a $6.4 billion operational loss on $3.2 billion revenue in 2025, with losses widening compared to 2024’s $1.56 billion loss on $2.62 billion revenue.
• The company plans to scale its AI model Grok to "multiple trillions of parameters," requiring significant additional investment in AI compute infrastructure, with capital expenditures reaching an annualized rate of about $30.8 billion in early 2026.
• As of March 2026, Grok AI had 117 million monthly active users out of 550 million total users across Grok and X, indicating limited adoption of AI features within the combined platform.
• SpaceX’s data centers, Colossus and Colossus II, provide about 1 gigawatt of compute power for AI training and inference, with ambitions to reduce costs and increase speed through vertical integration and future orbital AI compute satellites planned for deployment starting in 2028.
• The planned IPO of the combined SpaceX and xAI entity could be one of the largest in history, with a potential valuation of $1.75 trillion, positioning it alongside AI competitors like OpenAI and Anthropic who are also preparing for public offerings.