Elon Musk's SpaceX Poured $7.7 Billion Into AI Last Quarter. Here's the Bet Behind Its Widening Losses.

SpaceX spent $7.7 billion on AI infrastructure in Q1 2026, representing 76% of its total capital budget, as it builds out compute capacity for its xAI subsidiary. The massive spending has widened operating losses to $1.9 billion on $4.7 billion in revenue, raising investor concerns about cash burn rates and the company's path to profitability, despite the strategic appeal of combining rockets, satellite internet, and AI cloud services.