SpaceX merged with xAI in a deal valued at $1.25 trillion in early February 2026, creating a group valued between $1.5 and $1.77 trillion at its record IPO in June. The financials tell a stark story: xAI posted operating losses of $6.355 billion against revenues of just $3.201 billion in 2025, while SpaceX reported Q1 2026 revenue of $4.69 billion but swung to an operating loss of $1.94 billion, with AI expenditures dragging down the entire operation. The group spent over $12.7 billion on infrastructure in 2025 and closed the $60 billion all-stock acquisition of AI coding startup Cursor in June, signaling continued aggressive AI investment. Several analysts have raised alarms, warning of a « material threat of value destruction » if the AI bet fails to pay off.
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