SpaceX's first public earnings report reveals massive AI infrastructure spending for xAI Colossus data center project.

SpaceX shares fell sharply on Wednesday, August 5, following the company's first-ever public earnings report, which revealed massive artificial intelligence spending that spooked investors. The stock dropped 9% after the disclosure.

SpaceX, which began trading on the U.S. stock market in June, reported quarterly revenue nearly doubled to $7.8 billion compared to a year earlier. However, spending surged to $18.3 billion, with AI infrastructure comprising the largest portion. The company reported a loss of $143 million in the quarter ended June and $2 billion in the first half of the year. AI investments constituted 86% of total expenditure, amounting to $15.8 billion in the second quarter alone.

During an investor call, CEO Elon Musk acknowledged that people seemed to be "underestimating" SpaceX. He emphasized Starlink, the company's profitable satellite internet division, which is projected to generate $1 trillion in revenue by 2030. Musk also highlighted the rapid growth of SpaceX's AI compute business, which currently provides computing power to Google and Anthropic, among others. He stated the company's capacity will increase to at least 10 gigawatts next year, up from the current 1.4 gigawatts.

Analysts remained cautious about the trajectory. Matt Britzman of Hargreaves Lansdown observed that by going "all in" on data centres, Musk was positioning SpaceX to resemble "an AI infrastructure company with a remarkable space business bolted on." The rocketry division, which forms the core business, incurred a net loss of $542 million on revenues of $962 million.

The share price has declined steadily from its all-time high of $225 in June to approximately $116. Additional selling pressure may emerge following the expiry of the lockup period on Thursday, when up to 911.5 million shares could enter the market.