NEW YORK, United States – Shares of SpaceX dropped sharply after the company’s first earnings report as a publicly traded firm revealed a massive increase in artificial intelligence spending, despite reporting strong revenue growth.
Okay News reports that the company’s revenue rose to $7.8 billion in the second quarter, nearly double the figure recorded a year earlier. However, total spending surged to $18.3 billion, with most of the expenditure directed toward expanding its AI infrastructure, triggering investor concerns and sending the stock down about 9 percent.
The company posted a net loss of $143 million for the April–June quarter and a cumulative $2 billion loss for the first half of the year. Chief Executive Elon Musk argued that investors were undervaluing the business, highlighting the profitability of Starlink, which generated $1.6 billion during the quarter.
Musk said SpaceX expects significant growth from its AI computing business, which provides processing power to companies including Google and Anthropic. He said the firm’s AI computing capacity is projected to expand from 1.4 gigawatts to at least 10 gigawatts next year as new data centres come online.
While Starlink remains the company’s strongest-performing division, SpaceX’s core space operations recorded a $542 million loss on $962 million in quarterly revenue. Its AI business also remained unprofitable, reporting a $1.2 billion loss despite generating $2.5 billion in revenue.
Although Musk predicted the company could reach $1 trillion in annual revenue by 2030, analysts said investors remain cautious over rising AI costs and ongoing losses. Some also noted that controversies surrounding Musk’s political activities continue to pose additional risks for investor confidence.
