According to SpaceX's recent IPO prospectus filing submitted to the U.S. Securities and Exchange Commission, Elon Musk's AI company xAI has publicly revealed its financial details for the first time. Data shows that the company's losses sharply expanded in 2025, with an operating loss of $6.4 billion, while revenue during the same period was only $3.2 billion.

Widening Losses and a Surge in Parameters

This figure indicates that the gap between xAI's revenue and expenses is further widening. Compared to the $1.56 billion loss in 2024, the company's rate of spending is truly alarming. However, SpaceX stated in the document that this investment will not slow down, and it plans to scale up the parameter count of its AI assistant Grok to "trillions."

To support this ambition, xAI's investment in computing infrastructure is growing exponentially. In just the first quarter of 2026, capital expenditures in this area reached $7.7 billion, which translates to an annualized expenditure exceeding $30.8 billion.

Few Users and Space-Based Computing Power

Despite the huge investment, current commercial returns and user conversion rates remain low. As of March 2026, Grok had only 117 million monthly active users, and among the total 550 million monthly active users on X platform, only one-fifth actually used the AI features.

To paint a future profit outlook for investors, SpaceX proposed a highly sci-fi solution in the prospectus. The company plans to start deploying orbital AI computing satellites as early as 2028, attempting to significantly reduce the high costs of ground data centers by moving large model training and inference to space.