At SpaceX, AI is burning the cash that Starlink earns
April 24 : Elon Musk is touting SpaceX as humanity’s ticket to Mars. But the company’s pitch to investors for a potentially historic IPO reveals that its main business will be the same as Big Tech: building artificial intelligence. The difference is in how the companies fund the spending. While Alphabet and Microsoft have deep operating cash flows, SpaceX is bankrolling its push with revenue from rockets and satellites, leaving it with a cash-burn profile closer to a late-stage startup than a trillion-dollar incumbent. SpaceX’s satellite broadband business, Starlink, doubled its operating income last year to $4.42 billion, easily covering the loss incurred in its space division, which is spending heavily on a new satellite-carrying rocket, showed excerpts of the company’s IPO registration reviewed by Reuters. That has emboldened Musk to remake SpaceX as an AI-first company, dramatically shifting its spending profile. In 2025, the AI division – home to xAI – accounted for 61 per cent of the consolidated company’s $20.74 billion total capital spending. At the same time, rising costs pushed the unit …






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