As investors await SpaceX's IPO, Elon Musk's aerospace company reportedly lost $5 billion last year over AI spending

SpaceX (SPAX.PVT) is gearing up for what could beryllium the largest IPO successful history. It besides conscionable truthful happened to precocious study astir $5 cardinal successful losses. Those 2 things tin beryllium existent astatine the aforesaid time, and it tells you a batch astir what you'd beryllium buying into if you adhd SpaceX to your portfolio this summer.

On Thursday, The Information (1) reported Elon Musk's SpaceX mislaid astir $5 cardinal successful 2025 (2) contempt generating much than $18.5 cardinal successful revenue. Reuters confirmed the report, though it noted it could not independently verify the numbers and SpaceX did not respond to a petition for comment.

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Reuters reported successful January that SpaceX generated astir $8 cardinal successful EBITDA (3) — net earlier interest, taxes, depreciation and amortization — connected gross of $15 cardinal to $16 cardinal successful 2025. If true, the institution went from being 1 of the astir profitable aerospace businesses successful past to posting 1 of the largest losses successful its ain past successful the span of a azygous year.

The culprit, according to The Information's reporting, is xAI: Elon Musk's artificial quality company, which SpaceX acquired successful an all-stock merger (4) successful February 2026.

The fiscal figures for 2025 see xAI's costs, adjacent though the merger wasn't finalized until this year.

Internal documents from January amusement that xAI spent $7.8 cardinal successful conscionable the archetypal 9 months of 2025 — burning done astir $28 cardinal a time connected mean (5) — with losses widening each quarter. By Q3 2025, xAI's nett nonaccomplishment unsocial had reached $1.46 billion.

Elon spent that wealth gathering information centers, hiring engineers and processing AI software, with the eventual extremity of powering Tesla's (NASDAQ: TSLA) humanoid robot, Optimus. But for now, it's an costly bet.

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Investors are looking close past the losses and there's a logic to that adjacent if the numbers look unsettling.

SpaceX confidentially filed for a US IPO with the SEC (7) connected April 1, 2026, targeting a June listing connected the Nasdaq (8). The institution is seeking a valuation of $1.75 trillion and aims to rise astir $75 billion, which would marque it the largest IPO successful past by a wide borderline — Saudi Aramco's $29 cardinal debut successful 2019 presently holds that record.