Reuters: SpaceX took the wraps off its IPO filing on Wednesday, laying bare for investors just how much Elon Musk is losing on artificial intelligence while betting the company’s future on transforming the rocket maker into an AI powerhouse.
Much of its outlook relies on SpaceX dominating technologies and markets that do not yet exist – from Mars missions to AI data centers in space.
The filing cements Musk’s tight control of SpaceX while giving shareholders little say over his decisions. It shows just how central AI has become following the February purchase of xAI, which drove most of the company’s spending and a majority of its losses in the first quarter.
The listing could become the first U.S. market debut above $1 trillion and would immediately make SpaceX one of the world’s most valuable publicly traded companies.
Of SpaceX’s three divisions, only the connectivity segment powered by satellite internet unit Starlink was profitable in the first three months of the year.
While Starlink generated an operating profit of $1.19 billion, it wasn’t enough to prevent the company from booking a total operating loss of $1.94 billion in the first quarter on $4.69 billion in revenue. Its AI division, alone, accounted for $2.47 billion in losses on $818 million in revenue.
Musk’s purchase of his social media and AI company xAI gave SpaceX new capabilities and opportunities but a staggering amount of spending, accounting for 76% of its $10.1 billion in capital spending in the first quarter, as well as fresh losses.
The company’s plans rely on technology that’s not yet been built for much of its future revenue stream, including operating data centers powered by solar power in space, to reach a potential market of $28.5 trillion, according to the filing.
