‘Financials Look Reckless’: Lifting xAI’s Hood in the SpaceX IPO

In the first quarter of 2026, xAI recorded an operating loss of $2.47 billion on revenue of $818 million. For the full year 2025, the company posted an operating loss of $6.36 billion on revenue of $3.20 billion. The prospectus did not specify the source of revenue but noted that xAI's spending on computing resources and talent has been substantial.

The disclosure comes as SpaceX prepares for its initial public offering, which requires detailed financial information for all major subsidiaries. The report, titled 'Financials Look Reckless,' suggests that investors may view xAI's spending as aggressive relative to its revenue generation. xAI's losses underscore the capital-intensive nature of frontier AI development, where companies often prioritise scale over near-term profitability.