The documents filed by SpaceX for its IPO provided the first relatively comprehensive disclosure of the financial status of xAI, Elon Musk’s AI company. The filings show that the AI firm generated $3.2 billion in revenue in 2025, but its operating loss widened to $6.4 billion, as revenue growth continues to struggle to cover investments in model training, inference, and infrastructure.
Losses expanded to $6.4 billion
According to the disclosed data, xAI generated $2.62 billion in revenue in 2024 with a loss of $1.56 billion; by 2025, revenue increased to $3.2 billion, but losses rapidly expanded to $6.4 billion, with expenses growing significantly faster than revenue.
Revenue growth was primarily driven by AI solutions and infrastructure services, which together generated $465 million, including $365 million from X and Grok subscription revenue and $88 million from data licensing. Advertising contributed an additional $116 million.
Expenses continue to rise in 2026
The documents show that AI-related capital expenditures reached $12.7 billion in 2025, with $7.7 billion already spent in the first quarter of 2026. At this pace, the annualized capital expenditure would be approximately $30.8 billion, more than doubling year-over-year.
This means that xAI is still in a high-investment phase. The document states that one of the uses of the raised funds is to continue expanding AI computing infrastructure to support larger-scale model training and inference.
Grok continues to scale
SpaceX stated in its documents that the next generation of Grok will scale to "trillions of parameters" and described it as a significant advancement in reasoning depth and overall intelligence. If this goal is pursued, subsequent demands for computing power and funding will remain high.
As of March 2026, the monthly active users for Grok AI features reached 117 million, while the total monthly active users across the combined Grok and X ecosystem amounted to 550 million. This means that approximately one-fifth of the overall ecosystem actively uses Grok AI features.
1 gigawatt of computing power is now live.
Documents show that xAI's Colossus and Colossus II data centers went live in 122 and 91 days, respectively, providing a combined total of approximately 1 gigawatt of computing power for Grok's training and inference. SpaceX believes that building its own computing infrastructure and vertically integrating its AI technology stack helps reduce the cost of training cutting-edge models and accelerates iteration speed.
In addition to ground-based data centers, Musk’s previously proposed orbital AI computing initiative has now received a more specific timeline. The document states that SpaceX plans to begin deploying orbital AI computing satellites as early as 2028, though the plan remains several years away from actual implementation.