SpaceX has unveiled massive losses within its artificial intelligence and space operations as Elon Musk’s company moves toward a blockbuster public listing expected to rank among the largest IPOs ever.
Regulatory filings submitted Wednesday to the Securities and Exchange Commission showed that the company plans to trade on the Nasdaq under the ticker symbol SPCX, while also exposing the financial strain behind its rapid expansion into artificial intelligence, cloud infrastructure, and satellite technology.
Although SpaceX generated $4.69 billion in revenue during the first quarter, the filing revealed that its AI division alone posted a staggering $2.5 billion operating loss. The company’s core space business also remained in the red, reporting a quarterly operating loss of $619 million.
The only profitable division was Connectivity, driven largely by the Starlink satellite internet business, which delivered $1.19 billion in profit during the quarter.
Starlink accounted for the bulk of company revenue, generating $3.26 billion, or roughly 69% of total quarterly earnings. SpaceX said the service now has about 10.3 million subscribers worldwide.
The filing highlighted soaring operational costs linked to the company’s aggressive AI ambitions. Revenue costs within the AI segment jumped 29% in 2025 to $2.18 billion due to rising cloud computing and infrastructure expenses.
Research and development spending in the AI business surged more than 300% to $5.06 billion. The increase was driven by $1.67 billion in graphics processing unit depreciation expenses and another $1.44 billion in cloud and infrastructure spending.
SpaceX also disclosed contractual commitments totaling $25.45 billion, much of it tied to future cloud computing capacity agreements scheduled for 2026 and 2027.
Despite the heavy losses, the company projected enormous future market opportunities, estimating its total addressable market at $28.5 trillion.
“We believe we are still in the early days of AI transforming enterprises, with AI-powered enterprise applications poised to reshape the digital economy,” SpaceX said in the filing.
The company noted that it is developing an AI agent platform called Macrohard alongside Tesla, with ambitions to create an AI-operated software business.
Meanwhile, advertising operations tied to X, the social media platform formerly known as Twitter, continued to struggle. Advertising revenue fell by $100 million in the first quarter as the platform underwent major advertising technology changes.
The decline contrasted with stronger advertising performances recorded by rivals including Meta, Pinterest, and Reddit.
The filing also showed SpaceX spent heavily on products linked to Musk’s other ventures. The company disclosed $131 million in purchases of Tesla Cybertrucks during 2025, despite ongoing recalls and slowing consumer demand for the vehicles.
In addition, SpaceX purchased $697 million worth of Tesla Megapack energy storage systems across 2024 and 2025.
Musk himself received one billion performance-based restricted shares earlier this year, though the shares will only vest if the company succeeds in establishing a “permanent human colony on Mars with at least one million inhabitants,” according to the filing.
SpaceX stated that the award structure ties vesting requirements to both market capitalization milestones and Mars colonization targets, while also requiring Musk to remain employed by the company until certification by the board.
The company ended the quarter with more than 22,000 full-time employees globally and confirmed that none are covered by collective bargaining agreements.
Antonio Gracias, CEO of Valor Equity Partners and a SpaceX board member, remains one of the company’s largest shareholders ahead of the IPO, holding 503.4 million Class A shares representing 7.3% ownership.
