xAI's $6.4 Billion Loss: A Glimpse into the Financials of AI Giants

AI losses are mounting, but investors are still eager for the public debut of SpaceX's merged entity.

Elon Musk's xAI, merged with his rocket and satellite company SpaceX in February, has revealed significant losses in its financials. The filing shows that xAI lost $6.4 billion from operations on just $3.2 billion in revenue in 2025. This is a stark contrast to Anthropic, a competitor, which is reportedly expecting a 130% revenue jump to $10.9 billion in the second quarter, leading to its first operating profit.

• The losses for xAI are a result of its AI solutions and infrastructure revenue, which includes $365 million in X and Grok subscription revenue, and $88 million in data licensing. An additional $116 million came from advertising.
• AI segment capital expenditures climbed from $12.7 billion in 2025 to $7.7 billion in the first quarter of 2026 alone, resulting in an annualized capex run rate of about $30.8 billion, more than doubling year-over-year.

The filing also reveals plans by SpaceX to scale Grok to "multiple trillions of parameters," a dramatic boost that will likely require significant additional compute spend. This ambition is reflected in the "use of proceeds" section, which mentions an "expansion of our AI compute infrastructure." xAI's Colossus and Colossus II data centers, both of which came online in 122 days and 91 days, respectively, collectively provide about 1 gigawatt of compute power.

• xAI's Colossus and Colossus II data centers are used for Grok's training and inference, allowing the company to "train and iterate frontier models at lower cost and higher velocity."
• SpaceX claims that owning the compute infrastructure and vertically integrating across the AI stack lets them "train and iterate frontier models at lower cost and higher velocity."

The company also plans to begin deploying its orbital AI compute satellites as early as 2028, which Musk has promised to be a much cheaper alternative to terrestrial data centers. The filing sets a concrete timeline for such a launch, indicating the company's commitment to its ambitious plans.

"The future of AI will be determined by control of the physical stack," the filing reads.

The significant investment in AI solutions and infrastructure has resulted in growing, but still limited, user numbers. Per the filing, SpaceX recorded 117 million monthly active users for Grok AI features as of March 2026, out of 550 million total MAUs across Grok and X combined. This implies only one-fifth of the combined ecosystem is actively using Grok AI features.