xAI burned $6.4B last year, the spending is far from over; plus, Jensen Huang says he’s found a ‘brand new’ $200B market for Nvidia
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What are the hosts’ opening remarks and episode focus?
This is TechCrunch.
Hey there, I'm Travis Hoyam, one of the hosts of Motley Fool Hidden Gems Investing. Each weekday on Motley Fool Hidden Gems Investing, we talk through the business news you need to know and the stories moving stocks on Wall Street. On weekends, we game plan personal finance strategies and dive into the industry's shaping tomorrow, and host the experts, authors, and executives that understand them. Tune in for insights and a long-term perspective on investing and of course stock ideas, plenty of them. To quote a listener, it pays to listen. Check us out and subscribe wherever you listen to podcasts.
Elon Musk's XAI lost six point four billion dollars from operations on just three point two billion dollars in revenue last year.
How much did XAI lose in 2025 and what does the SpaceX filing reveal?
That's according to SpaceX's IPO filings. And the losses are poised to grow. SpaceX's filing reveals plans to scale Grok to multiple trillions of parameters, a dramatic boost that will likely require significant additional compute spend. Elon Musk merged his AI company, XAI, which had previously acquired his social media platform X, formerly Twitter, with his rocket and satellite company, SpaceX, back in February, before announcing that he'd take the combined company public this year.
Why is SpaceX planning to scale Grok to multiple‑trillion‑parameter models?
While AI competitors, OpenAI and Anthropic, are also eyeing public debuts this year, SpaceX's is expected to be one of the largest in history with a potential $1.75 trillion valuation. The filing marks the first public glimpses into XAI and therefore X's financials. In twenty twenty four, XAI recorded a loss of one point five six billion dollars on two point six two billion dollars in revenue. By twenty twenty five, losses had ballooned to six point four billion dollars on three point two billion dollars of revenue, meaning the gap between what XAI earned turns and spins is widening. Meanwhile, competitor and customer, Anthropic reportedly expects a 130% revenue jump to ten point nine billion dollars in the second quarter, leading to its first operating profit.
The jump in revenue from twenty twenty four to twenty twenty five came in large part from AI solutions and infrastructure revenue. Totaling four hundred sixty five million dollars, which includes three hundred sixty five million dollars in X and Grok subscription revenue, and eighty eight million dollars in data licensing. An additional one hundred sixteen million dollars came from advertising. AI segment capital expenditures climbed from $12.7 billion in 2025 to $7.7 billion in the first quarter of this year alone. That's an annualized CapEx run rate of about $30.8 billion, more than doubling year over year. So far, that investment 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 of this year, out of 550 million total MAUs across Grok and X combined.
That implies only one-fifth of the combined ecosystem is actively using. Grok AI features.
What is the plan for orbital AI compute satellites and when will they launch?
Still, SpaceX intends to soldier on with Grok. Its next generation AI is expected to scale to multiple trillions of parameters and Which the filing describes as a step change in reasoning and depth and overall intelligence.
How does Jensen Huang describe Nvidia’s new Vera CPU and its $200 B market?
It is an ambitious target, and one that's now recorded in the audited annals of SEC history. It's also a target that will undoubtedly require more investment. The SpaceX filing's use of proceeds section mentions an expansion of our AI compute infrastructure. Per the filing, XAI's Colossus and Colossus II data centers, both of which came online in one hundred twenty two days and ninety one days respectively. Collectively provide about one gigawatt of compute power. These are both used for Grok's training and inference. 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. Another way that SpaceX might assuage investors' fears about spending is by performing training and inference on orbital data centers, which Musk has promised to be a much cheaper alternative to terrestrial data centers.
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Chapters
6 chapters
1
What are the hosts’ opening remarks and episode focus?
0:02–0:53
2
How much did XAI lose in 2025 and what does the SpaceX filing reveal?
0:53–1:29
3
Why is SpaceX planning to scale Grok to multiple‑trillion‑parameter models?
1:29–3:35
4
What is the plan for orbital AI compute satellites and when will they launch?
3:35–3:52
5
How does Jensen Huang describe Nvidia’s new Vera CPU and its $200 B market?
3:52–5:32
6
Why does Nvidia believe its Vera CPU will dominate the agent‑centric AI market?
5:32–9:06
Speakers
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