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According to SpaceX’s IPO filings, Elon Musk’s artificial intelligence company xAI recorded an operating loss of $6.4 billion in 2025 against revenue of just $3.2 billion. These financial setbacks appear poised to increase. The filing reveals plans to expand the Grok AI model to “multiple trillions of parameters,” a significant scaling effort that will likely demand substantial additional spending on computing power.

In February, Musk merged xAI—which had earlier acquired his social media platform X, formerly known as Twitter—with his aerospace company SpaceX. He subsequently announced plans to take the combined entity public this year. While competitors OpenAI and Anthropic are also eyeing public offerings in 2026, SpaceX’s IPO is expected to be one of the largest in history, potentially valuing the company at $1.75 trillion.

The filing offers the first public look at xAI’s—and by extension X’s—financial performance. In 2024, xAI posted a loss of $1.56 billion on $2.62 billion in revenue. By 2025, losses had soared to $6.4 billion on $3.2 billion in revenue, indicating a widening gap between earnings and expenditures. In contrast, competitor and customer Anthropic reportedly expects a 130% revenue surge to $10.9 billion in the second quarter, which would mark its first operating profit.

The revenue jump from 2024 to 2025 was largely driven by “AI solutions and infrastructure revenue,” which totaled $465 million. This included $365 million from X and Grok subscription revenue and $88 million from data licensing. An additional $116 million came from advertising. Capital expenditures for the AI segment climbed from $12.7 billion in 2025 to $7.7 billion in the first quarter of 2026 alone. That translates to an annualized capex run rate of roughly $30.8 billion, more than doubling year over year.

So far, this heavy investment has yielded growing but still limited user numbers. As of March 2026, SpaceX recorded 117 million monthly active users for Grok AI features, out of a combined 550 million MAUs across Grok and X. This means only about one-fifth of the total ecosystem actively uses Grok’s AI capabilities.

Despite this, SpaceX intends to press forward with Grok. The next-generation AI is expected to scale to “multiple trillions of parameters,” which the filing describes as a “step change in reasoning in depth and overall intelligence.” This ambitious goal is now documented in audited SEC records. It is also a target that will almost certainly require further investment. The “use of proceeds” section of the SpaceX filing mentions an “expansion of our AI compute infrastructure.”

According to the filing, xAI’s Colossus and Colossus II data centers—both brought online in 122 days and 91 days, respectively—collectively provide about 1 gigawatt of compute power. These facilities are used for both training and inference of the Grok model. SpaceX claims that owning the compute infrastructure and vertically integrating across the AI stack allows them to “train and iterate frontier models at lower cost and higher velocity.”

Another potential way SpaceX might ease investor concerns about spending is by performing training and inference on orbital data centers. Musk has promised these would be a much cheaper alternative to terrestrial data centers. However, that sci-fi vision is unlikely to materialize for several years. The filing states that SpaceX intends to begin deploying its orbital AI compute satellites as early as 2028—the first concrete timeline set for such a launch. “The future of AI will be determined by control of the physical stack,” the filing reads.