SpaceX Reports Strong AI Growth but Heavy Spending Weighs on Shares

SpaceX (ticker: SPCX) is expanding its artificial intelligence business faster than expected, but the company is also spending aggressively to support that growth, Jared Blikre reported for Yahoo Finance.

SpaceX is expanding investment in artificial intelligence infrastructure. [Photo: SpaceX X]

In its first quarterly earnings report as a publicly traded company, SpaceX said its AI business grew rapidly and returned to an adjusted profit.

However, the company spent nearly $16 billion on AI infrastructure during the quarter—more than six times the segment's revenue.

SpaceX shares fell more than 10% in premarket trading following the report.

AI revenue more than tripled from the previous quarter to $2.6 billion, while adjusted EBITDA improved from a $609 million loss to a $1.1 billion profit.

Adjusted EBITDA excludes depreciation, stock-based compensation and several other expenses. While the metric reflects operating performance, it does not capture the full cost of infrastructure investments.

Despite the improvement in adjusted EBITDA, SpaceX's AI division posted an operating loss of $1.3 billion.

Capital expenditures on AI surged to $15.8 billion during the quarter, up from $7.7 billion in the first quarter and $749 million a year earlier. AI accounted for more than 86% of the company's total capital spending.