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xAI lost $6.4B last year, SpaceX's IPO filing reveals
21 May 2026

Elon Musk's artificial intelligence (AI) company, xAI, reported a staggering $6.4 billion operating loss in 2025, according to SpaceX's IPO filings.

The loss is a major jump from the previous year's $1.56 billion deficit and comes despite a modest revenue increase for the company during the same period.

The financial data was revealed as part of SpaceX's filing with the US Securities and Exchange Commission (SEC) ahead of its initial public offering (IPO).

Revenue growth amidst losses
Financial performance

Despite the massive loss, xAI's revenue grew by 22% to $3.2 billion in 2025, from $2.62 billion in the previous year.

This growth rate is much lower than the triple-digit expansion seen by rival AI labs such as Anthropic.

For Q1 2026, xAI reported a loss of $2.47 billion on revenue of $818 million, compared to a smaller loss of $936 million on revenue of $727 million in the same quarter last year.

Massive investments in AI infrastructure
Investment impact

The surge in losses is largely due to massive investments by xAI in building AI infrastructure and compute capabilities.

The company's capital expenditure for its AI segment was $12.7 billion in 2025 and has already reached $7.7 billion in Q1 2026, indicating an annualized run rate of about $30.8 billion.

This aggressive spending strategy is aimed at capturing long-term growth opportunities within the fast-evolving AI sector.

xAI has over half a billion MAUs
User base

Musk launched xAI in 2023 and merged it with rocket and satellite company SpaceX in February 2026, valuing the combined entity at $1.25 trillion.

SpaceX's AI platforms across Grok and X have some 550 million monthly active users (MAUs) who create about 350 million posts daily.

However, only about one-fifth of these users (117 million MAUs) had used Grok's AI features as of March 31, 2026.

SpaceX aims to scale Grok further
Future plans

In its IPO filing, SpaceX said it intends to scale Grok, with future models moving toward "multiple trillions of parameters." This could mark a major leap in reasoning depth and overall intelligence.

The company also highlighted the deep integration of Grok with X, saying it provides "freshness, relevance, and contextual awareness that we believe is a competitive differentiator."