SpaceX's AI Pursuits Have Yet to Take Off

SpaceX’s IPO filing reveals a split business: a profitable Starlink/space-launch arm but a shaky AI division that has relied largely on X (formerly Twitter) for revenue. AI sales fell to $2.62bn in 2024 (down 11.5% year-on-year) before rising to about $3.2bn more recently, while losses swelled to $6.35bn as depreciation on AI hardware grew. A capacity-rental deal with Anthropic — roughly $15bn per year over the next three years — should substantially boost near-term cash flows from SpaceX’s AI data centers. Market impact: the filing highlights execution risk for SpaceX’s AI ambitions but also underscores demand for AI chips and infrastructure (a tailwind for chip vendors such as NVDA.OQ). Overall signals are mixed for investors weighing SpaceX’s IPO and related AI-infrastructure plays.