AI (X and xAI)Thin moat

SpaceX (SPCX) — moat facet

X's shrinking advertising plus a sudden cloud business: revenue up 247% in one quarter on $14.1 billion of contracts, and $15.8 billion of capital spent in the same three months.

The AI segment is two businesses under one name, and the second only arrived in 2026. In 2023 and 2024, the filing says, substantially all of its revenue was advertising, subscriptions and data licensing from X, formerly Twitter.1 In the June 2026 quarter AI solutions and infrastructure brought in $2,194 million against $367 million from advertising, and the segment's revenue was $2,561 million, up 247%.2

AI segment revenue ($M)$2,9612023$2,6202024$3,2012025$3,379H1 2026SpaceX IPO prospectus segment note; Q2 2026 results release
Two years of X shrinking and recovering, then half a year of 2026 that out-sold all of 2025.

How it became part of SpaceX explains the numbers. xAI acquired X Holdings on 28 March 2025, and SpaceX acquired xAI on 2 February 2026; because all three were under common control, the prospectus restates every year as if they had always been one company.3 So SpaceX's reported history includes Twitter's decline under its new owner as well as xAI's start.

Revenue fell before it rose. The segment sold $2,961 million in 2023 and $2,620 million in 2024, down 11.5%, because advertising revenue fell $595 million after X lost advertising partners; subscriptions rose $157 million and data licensing $90 million.45 In 2025 revenue rose 22.2% to $3,201 million: advertising recovered $116 million and AI solutions and infrastructure grew $465 million, mostly X and Grok subscriptions, up $365 million, and data licensing, up $88 million.67 In the March 2026 quarter advertising fell $100 million during an overhaul of the ad platform, and subscriptions made up for it.8

Then came the contracts. In the June quarter SpaceX signed cloud-services agreements worth $14.1 billion of contracted sales, which added $1.6 billion of AI infrastructure revenue in the quarter; nameplate compute rose from 1.0 to 1.4 gigawatts.9 One AI customer, Customer B in the filing, was 19.5% of the whole company's revenue.10 Advertising kept shrinking underneath, to $367 million from $426 million a year earlier, a fall of 14%.1112 The segment's research and development nearly doubled in the year, to $2,178 million in the quarter from $1,122 million, which is where the new models are paid for.13 Revenue in the first half of 2026, $3,379 million, was already more than all of 2025.14

The segment has never made an operating profit. It lost $3,973 million in 2023, including a $3,775 million impairment, $1,561 million in 2024 and $6,355 million in 2025.15 The losses come from building: research and development rose from $186 million in 2023 to $5,064 million in 2025, capital spending from $463 million to $12,727 million, and depreciation and amortisation from $1,180 million to $3,568 million.16 Stock pay tells the same story, $3 million in 2023 and $1,063 million in 2025, as xAI's engineers joined the payroll.17 In 2025 the segment's cost of revenue rose $491 million, $412 million of it infrastructure and cloud-computing costs attributed to growing subscription revenue.18 In the June 2026 quarter the operating loss narrowed to $1,257 million and adjusted EBITDA turned positive at $1,146 million, from a loss of $609 million in March, because the new cloud revenue arrives with depreciation, $1,885 million in the quarter, that EBITDA leaves out.19

The pace of spending is the part to weigh. AI capital expenditure was $15,828 million in the June quarter alone, more than all the revenue the segment has reported since the start of 2023, $12,161 million.2021 SpaceX has also agreed to buy Cursor, an AI coding tool, for $60 billion, and released Grok 4.5 in July.22 Who buys the compute, and how concentrated that is, is argued on The AI Customer at Nineteen Percent; the plan to put compute in orbit is under xAI & Compute in Orbit.

This is a thin moat attached to a large budget. X's advertising is smaller than in 2023, and rented compute is sold on price and availability to a handful of buyers. The test is whether adjusted EBITDA stays positive after the next cloud contracts have been signed and depreciation on the new capacity is fully running; a return to losses would say the June quarter was the peak of one contract rather than the start of a business.

Moat trajectory: Holding steady

Revenue jumped on cloud contracts and adjusted EBITDA turned positive, but one customer is 19.5% of company revenue and the segment still loses $1.3 billion a quarter at the operating line.

The number that tests this moat
Reported
AI segment adjusted EBITDA, latest quarter
$1,146M in Q2 2026, from -$609M in Q1 and -$276M a year earlier

It turned positive on new cloud contracts. Staying positive once depreciation on the new capacity is running would make this a business; a return to losses would make June a one-contract quarter.

Source: SpaceX Q2 2026 results release ↗
References
  1. ReportedIn 2023 and 2024, the filing says, substantially all of its revenue was advertising, subscriptions and data licensing from X, formerly Twitter.
    SpaceX IPO prospectus (Form 424B4), MD&A by segment - Connectivity revenue +96.4% (+$3,730M) in 2024 and +49.8% (+$3,788M) in 2025: consumer +$2,013M (subscribers +96.5%, ARPU -8.1%) and +$2,377M (subscribers +99.9%, ARPU -11.2%), government +$1,250M and +$193M, enterprise +$466M and +$1,218M including mobile +$632M; Q1 2026 +$782M (31.6%): consumer +$656M (subscribers +104.7%, ARPU -22.9%), aviation/maritime/other enterprise +$209M, mobile +$85M, government -$175M; 2025 Connectivity cost of revenue +$1,153M incl. depreciation +$827M. Space revenue +$239M (6.7%) in 2024 (launch services +$620M, Falcon launches 96 to 134, launch and development -$381M) and +$290M (7.6%) in 2025 (launch services flat, launch and development +$298M on the extended NASA CRS contract and a U.S. Department of War contract; Falcon launches 134 to 165; customer launches and average price per launch relatively flat); Starlink launches 63, 89 and 122; 2025 Space cost of revenue -$189M incl. depreciation -$240M; Space R&D +$1,169M (63.7%) in 2025 on Starship; Q1 2026 Space revenue -28.4% on fewer customer launches, Falcon launches 36 to 40. AI revenue -11.5% (-$341M) in 2024 (advertising -$595M on the loss of advertising partners; subscriptions +$157M, data licensing +$90M) and +22.2% (+$581M) in 2025 (advertising +$116M; AI solutions and infrastructure +$465M incl. subscriptions +$365M, data licensing +$88M); in 2023 and 2024 substantially all AI revenue came from X; Q1 2026 advertising -$100M during an ad-platform overhaul; 2025 AI cost of revenue +$491M incl. infrastructure and cloud computing +$412M; company revenue +$3,628M (34.9%) in 2024 and +$4,659M (33.2%) in 2025 — FY2023-Q1 2026 · publ. June 11, 2026 · source ↗
  2. ReportedIn the June 2026 quarter AI solutions and infrastructure brought in $2,194 million against $367 million from advertising, and the segment's revenue was $2,561 million, up 247%.
    SpaceX Q2 2026 results release (Form 8-K exhibit 99.1, 4 August 2026) - revenue Space $962M, Connectivity $4,291M, AI $2,561M (Q2 2025 $746M, $2,588M, $737M); income from operations Space $(542)M, Connectivity $1,656M, AI $(1,257)M; H1 2026 Space $(1,204)M and Space adjusted EBITDA $(556)M; adjusted EBITDA Connectivity $2,597M, AI $1,146M (Q1 $(609)M); capex $18,369M (AI $15,828M, Connectivity $1,367M); AI depreciation $1,885M; AI R&D $2,178M against $1,122M; advertising $367M against $426M and AI solutions and infrastructure $2,194M against $311M; H1 AI revenue $3,379M; cloud services agreements $14.1B contracted, $1.6B incremental revenue; nameplate compute 1.4 GW from 1.0 GW; Cursor acquisition for $60B; Grok 4.5; launch services revenue $648M (Q1 $330M, Q2 2025 $490M); customer launches 10 (Q1 7, Q2 2025 9); Space revenue $1,581M in H1 against $1,611M; consumer revenue $2,485M (+44%), enterprise and government $1,806M (+108%); subscribers 12.0M; ARPU $66 — Q2 2026 · publ. August 4, 2026 · source ↗
  3. ReportedxAI acquired X Holdings on 28 March 2025, and SpaceX acquired xAI on 2 February 2026; because all three were under common control, the prospectus restates every year as if they had always been one company.
    SpaceX IPO prospectus (Form 424B4, 11 June 2026) - founded 2002; Falcon 9 first flew 2010 (NASA: about $2,700 per kilogram against an $18,500 historical average), Dragon first commercial cargo to the ISS in 2012 and first privately built crew vehicle eight years later, Falcon Heavy 2018; about 620 Falcon 9 launches and over 99% mission success by March 2026; more than 80% of the world's mass to orbit each year since 2023; X Merger 28 March 2025 and xAI Merger 2 February 2026 restated as entities under common control; no inter-segment revenue on internal constellation deployments; Connectivity offerings (consumer, enterprise, government, Starlink Mobile through about 30 MNOs; fixed or per-user MNO fees; consumer subscribers over 60% of 2025 Connectivity revenue); about 9,600 satellites, about 75% of active manoeuvrable satellites, median 225 Mbps; Starlink subscribers 2.3M, 4.4M, 8.9M, 10.3M and ARPU $99, $91, $81, $66; V3 satellites of one Tbps, up to 60 per Starship, a twenty-fold increase per launch; Starship aimed at a 99% cost reduction and payload delivery to orbit from 2H 2026; fixed-price Space contracts recognised at a point in time or over time; backlog $28,377M at 31 December 2025 — 2002 to March 2026 · publ. June 11, 2026 · source ↗
  4. ReportedThe segment sold $2,961 million in 2023 and $2,620 million in 2024, down 11.5%, because advertising revenue fell $595 million after X lost advertising partners; subscriptions rose $157 million and data licensing $90 million.
    SpaceX IPO prospectus (Form 424B4), segment note - revenue Space $3,557M / $3,796M / $4,086M, Connectivity $3,869M / $7,599M / $11,387M, AI $2,961M / $2,620M / $3,201M (2023-2025); income from operations Space $(1)M / $21M / $(657)M, Connectivity $469M / $2,006M / $4,423M, AI $(3,973)M / $(1,561)M / $(6,355)M; adjusted EBITDA Space $997M / $1,154M / $653M, Connectivity $1,602M / $3,849M / $7,168M, AI $1,222M / $347M / $(1,237)M; R&D Space $1,538M / $1,835M / $3,004M, AI $186M / $1,176M / $5,064M; cost of revenue Space $1,669M / $1,541M / $1,352M; capex Space $1,497M / $2,032M / $3,832M, Connectivity $2,455M / $3,498M / $4,178M, AI $463M / $5,633M / $12,727M, total $20,737M in 2025; depreciation and amortization Connectivity $884M / $1,508M / $2,376M, AI $1,180M / $1,679M / $3,568M, Space $757M in 2025, total $6,701M; share-based compensation AI $3M / $16M / $1,063M; AI impairment $3,775M in 2023 — FY2023-FY2025 · publ. June 11, 2026 · source ↗
  5. ReportedThe segment sold $2,961 million in 2023 and $2,620 million in 2024, down 11.5%, because advertising revenue fell $595 million after X lost advertising partners; subscriptions rose $157 million and data licensing $90 million.
    SpaceX IPO prospectus (Form 424B4), MD&A by segment - Connectivity revenue +96.4% (+$3,730M) in 2024 and +49.8% (+$3,788M) in 2025: consumer +$2,013M (subscribers +96.5%, ARPU -8.1%) and +$2,377M (subscribers +99.9%, ARPU -11.2%), government +$1,250M and +$193M, enterprise +$466M and +$1,218M including mobile +$632M; Q1 2026 +$782M (31.6%): consumer +$656M (subscribers +104.7%, ARPU -22.9%), aviation/maritime/other enterprise +$209M, mobile +$85M, government -$175M; 2025 Connectivity cost of revenue +$1,153M incl. depreciation +$827M. Space revenue +$239M (6.7%) in 2024 (launch services +$620M, Falcon launches 96 to 134, launch and development -$381M) and +$290M (7.6%) in 2025 (launch services flat, launch and development +$298M on the extended NASA CRS contract and a U.S. Department of War contract; Falcon launches 134 to 165; customer launches and average price per launch relatively flat); Starlink launches 63, 89 and 122; 2025 Space cost of revenue -$189M incl. depreciation -$240M; Space R&D +$1,169M (63.7%) in 2025 on Starship; Q1 2026 Space revenue -28.4% on fewer customer launches, Falcon launches 36 to 40. AI revenue -11.5% (-$341M) in 2024 (advertising -$595M on the loss of advertising partners; subscriptions +$157M, data licensing +$90M) and +22.2% (+$581M) in 2025 (advertising +$116M; AI solutions and infrastructure +$465M incl. subscriptions +$365M, data licensing +$88M); in 2023 and 2024 substantially all AI revenue came from X; Q1 2026 advertising -$100M during an ad-platform overhaul; 2025 AI cost of revenue +$491M incl. infrastructure and cloud computing +$412M; company revenue +$3,628M (34.9%) in 2024 and +$4,659M (33.2%) in 2025 — FY2023-Q1 2026 · publ. June 11, 2026 · source ↗
  6. ReportedIn 2025 revenue rose 22.2% to $3,201 million: advertising recovered $116 million and AI solutions and infrastructure grew $465 million, mostly X and Grok subscriptions, up $365 million, and data licensing, up $88 million.
    SpaceX IPO prospectus (Form 424B4), segment note - revenue Space $3,557M / $3,796M / $4,086M, Connectivity $3,869M / $7,599M / $11,387M, AI $2,961M / $2,620M / $3,201M (2023-2025); income from operations Space $(1)M / $21M / $(657)M, Connectivity $469M / $2,006M / $4,423M, AI $(3,973)M / $(1,561)M / $(6,355)M; adjusted EBITDA Space $997M / $1,154M / $653M, Connectivity $1,602M / $3,849M / $7,168M, AI $1,222M / $347M / $(1,237)M; R&D Space $1,538M / $1,835M / $3,004M, AI $186M / $1,176M / $5,064M; cost of revenue Space $1,669M / $1,541M / $1,352M; capex Space $1,497M / $2,032M / $3,832M, Connectivity $2,455M / $3,498M / $4,178M, AI $463M / $5,633M / $12,727M, total $20,737M in 2025; depreciation and amortization Connectivity $884M / $1,508M / $2,376M, AI $1,180M / $1,679M / $3,568M, Space $757M in 2025, total $6,701M; share-based compensation AI $3M / $16M / $1,063M; AI impairment $3,775M in 2023 — FY2023-FY2025 · publ. June 11, 2026 · source ↗
  7. ReportedIn 2025 revenue rose 22.2% to $3,201 million: advertising recovered $116 million and AI solutions and infrastructure grew $465 million, mostly X and Grok subscriptions, up $365 million, and data licensing, up $88 million.
    SpaceX IPO prospectus (Form 424B4), MD&A by segment - Connectivity revenue +96.4% (+$3,730M) in 2024 and +49.8% (+$3,788M) in 2025: consumer +$2,013M (subscribers +96.5%, ARPU -8.1%) and +$2,377M (subscribers +99.9%, ARPU -11.2%), government +$1,250M and +$193M, enterprise +$466M and +$1,218M including mobile +$632M; Q1 2026 +$782M (31.6%): consumer +$656M (subscribers +104.7%, ARPU -22.9%), aviation/maritime/other enterprise +$209M, mobile +$85M, government -$175M; 2025 Connectivity cost of revenue +$1,153M incl. depreciation +$827M. Space revenue +$239M (6.7%) in 2024 (launch services +$620M, Falcon launches 96 to 134, launch and development -$381M) and +$290M (7.6%) in 2025 (launch services flat, launch and development +$298M on the extended NASA CRS contract and a U.S. Department of War contract; Falcon launches 134 to 165; customer launches and average price per launch relatively flat); Starlink launches 63, 89 and 122; 2025 Space cost of revenue -$189M incl. depreciation -$240M; Space R&D +$1,169M (63.7%) in 2025 on Starship; Q1 2026 Space revenue -28.4% on fewer customer launches, Falcon launches 36 to 40. AI revenue -11.5% (-$341M) in 2024 (advertising -$595M on the loss of advertising partners; subscriptions +$157M, data licensing +$90M) and +22.2% (+$581M) in 2025 (advertising +$116M; AI solutions and infrastructure +$465M incl. subscriptions +$365M, data licensing +$88M); in 2023 and 2024 substantially all AI revenue came from X; Q1 2026 advertising -$100M during an ad-platform overhaul; 2025 AI cost of revenue +$491M incl. infrastructure and cloud computing +$412M; company revenue +$3,628M (34.9%) in 2024 and +$4,659M (33.2%) in 2025 — FY2023-Q1 2026 · publ. June 11, 2026 · source ↗
  8. ReportedIn the March 2026 quarter advertising fell $100 million during an overhaul of the ad platform, and subscriptions made up for it.
    SpaceX IPO prospectus (Form 424B4), MD&A by segment - Connectivity revenue +96.4% (+$3,730M) in 2024 and +49.8% (+$3,788M) in 2025: consumer +$2,013M (subscribers +96.5%, ARPU -8.1%) and +$2,377M (subscribers +99.9%, ARPU -11.2%), government +$1,250M and +$193M, enterprise +$466M and +$1,218M including mobile +$632M; Q1 2026 +$782M (31.6%): consumer +$656M (subscribers +104.7%, ARPU -22.9%), aviation/maritime/other enterprise +$209M, mobile +$85M, government -$175M; 2025 Connectivity cost of revenue +$1,153M incl. depreciation +$827M. Space revenue +$239M (6.7%) in 2024 (launch services +$620M, Falcon launches 96 to 134, launch and development -$381M) and +$290M (7.6%) in 2025 (launch services flat, launch and development +$298M on the extended NASA CRS contract and a U.S. Department of War contract; Falcon launches 134 to 165; customer launches and average price per launch relatively flat); Starlink launches 63, 89 and 122; 2025 Space cost of revenue -$189M incl. depreciation -$240M; Space R&D +$1,169M (63.7%) in 2025 on Starship; Q1 2026 Space revenue -28.4% on fewer customer launches, Falcon launches 36 to 40. AI revenue -11.5% (-$341M) in 2024 (advertising -$595M on the loss of advertising partners; subscriptions +$157M, data licensing +$90M) and +22.2% (+$581M) in 2025 (advertising +$116M; AI solutions and infrastructure +$465M incl. subscriptions +$365M, data licensing +$88M); in 2023 and 2024 substantially all AI revenue came from X; Q1 2026 advertising -$100M during an ad-platform overhaul; 2025 AI cost of revenue +$491M incl. infrastructure and cloud computing +$412M; company revenue +$3,628M (34.9%) in 2024 and +$4,659M (33.2%) in 2025 — FY2023-Q1 2026 · publ. June 11, 2026 · source ↗
  9. ReportedIn the June quarter SpaceX signed cloud-services agreements worth $14.1 billion of contracted sales, which added $1.6 billion of AI infrastructure revenue in the quarter; nameplate compute rose from 1.0 to 1.4 gigawatts.
    SpaceX Q2 2026 results release (Form 8-K exhibit 99.1, 4 August 2026) - revenue Space $962M, Connectivity $4,291M, AI $2,561M (Q2 2025 $746M, $2,588M, $737M); income from operations Space $(542)M, Connectivity $1,656M, AI $(1,257)M; H1 2026 Space $(1,204)M and Space adjusted EBITDA $(556)M; adjusted EBITDA Connectivity $2,597M, AI $1,146M (Q1 $(609)M); capex $18,369M (AI $15,828M, Connectivity $1,367M); AI depreciation $1,885M; AI R&D $2,178M against $1,122M; advertising $367M against $426M and AI solutions and infrastructure $2,194M against $311M; H1 AI revenue $3,379M; cloud services agreements $14.1B contracted, $1.6B incremental revenue; nameplate compute 1.4 GW from 1.0 GW; Cursor acquisition for $60B; Grok 4.5; launch services revenue $648M (Q1 $330M, Q2 2025 $490M); customer launches 10 (Q1 7, Q2 2025 9); Space revenue $1,581M in H1 against $1,611M; consumer revenue $2,485M (+44%), enterprise and government $1,806M (+108%); subscribers 12.0M; ARPU $66 — Q2 2026 · publ. August 4, 2026 · source ↗
  10. ReportedOne AI customer, Customer B in the filing, was 19.5% of the whole company's revenue.
    SpaceX Form 10-Q, quarter ended 30 June 2026 - Customer B (AI segment) 19.5% of revenue; backlog $47,461M, about 56% within one year; Enterprise & Government revenue includes Starlink Mobile — Q2 2026 · publ. August 4, 2026 · source ↗
  11. ReportedAdvertising kept shrinking underneath, to $367 million from $426 million a year earlier, a fall of 14%.
    SpaceX Q2 2026 results release (Form 8-K exhibit 99.1, 4 August 2026) - revenue Space $962M, Connectivity $4,291M, AI $2,561M (Q2 2025 $746M, $2,588M, $737M); income from operations Space $(542)M, Connectivity $1,656M, AI $(1,257)M; H1 2026 Space $(1,204)M and Space adjusted EBITDA $(556)M; adjusted EBITDA Connectivity $2,597M, AI $1,146M (Q1 $(609)M); capex $18,369M (AI $15,828M, Connectivity $1,367M); AI depreciation $1,885M; AI R&D $2,178M against $1,122M; advertising $367M against $426M and AI solutions and infrastructure $2,194M against $311M; H1 AI revenue $3,379M; cloud services agreements $14.1B contracted, $1.6B incremental revenue; nameplate compute 1.4 GW from 1.0 GW; Cursor acquisition for $60B; Grok 4.5; launch services revenue $648M (Q1 $330M, Q2 2025 $490M); customer launches 10 (Q1 7, Q2 2025 9); Space revenue $1,581M in H1 against $1,611M; consumer revenue $2,485M (+44%), enterprise and government $1,806M (+108%); subscribers 12.0M; ARPU $66 — Q2 2026 · publ. August 4, 2026 · source ↗
  12. Moat Explorer calcAdvertising kept shrinking underneath, to $367 million from $426 million a year earlier, a fall of 14%.
    Moat Explorer calculation from SpaceX's prospectus, Q2 2026 10-Q and results release: cumulative 2023-2025 income from operations Connectivity $6,898M, Space $(637)M, AI $(11,889)M; 2025 revenue shares Connectivity 61.0%, Space 21.9%, AI 17.1%; 2023-2025 growth Connectivity x2.94 (71.6% a year), Space +14.9% (7.2% a year), AI +8.1%; AI share of revenue 18.1% (Q2 2025) and 32.8% (Q2 2026); AI 61.4% of 2025 capex; Connectivity operating margin 12.1%, 26.4%, 38.8% and 38.6% (Q2 2026); non-Starlink Falcon launches 33, 45 and 43; launch-services revenue per customer launch about $54M (Q2 2025), $47M (Q1 2026), $65M (Q2 2026); AI revenue reported since 2023 $12,161M; advertising -14% year on year in Q2 2026 — 2023 to Q2 2026 · publ. 2026-09-23 · source ↗
  13. ReportedThe segment's research and development nearly doubled in the year, to $2,178 million in the quarter from $1,122 million, which is where the new models are paid for.
    SpaceX Q2 2026 results release (Form 8-K exhibit 99.1, 4 August 2026) - revenue Space $962M, Connectivity $4,291M, AI $2,561M (Q2 2025 $746M, $2,588M, $737M); income from operations Space $(542)M, Connectivity $1,656M, AI $(1,257)M; H1 2026 Space $(1,204)M and Space adjusted EBITDA $(556)M; adjusted EBITDA Connectivity $2,597M, AI $1,146M (Q1 $(609)M); capex $18,369M (AI $15,828M, Connectivity $1,367M); AI depreciation $1,885M; AI R&D $2,178M against $1,122M; advertising $367M against $426M and AI solutions and infrastructure $2,194M against $311M; H1 AI revenue $3,379M; cloud services agreements $14.1B contracted, $1.6B incremental revenue; nameplate compute 1.4 GW from 1.0 GW; Cursor acquisition for $60B; Grok 4.5; launch services revenue $648M (Q1 $330M, Q2 2025 $490M); customer launches 10 (Q1 7, Q2 2025 9); Space revenue $1,581M in H1 against $1,611M; consumer revenue $2,485M (+44%), enterprise and government $1,806M (+108%); subscribers 12.0M; ARPU $66 — Q2 2026 · publ. August 4, 2026 · source ↗
  14. ReportedRevenue in the first half of 2026, $3,379 million, was already more than all of 2025.
    SpaceX Q2 2026 results release (Form 8-K exhibit 99.1, 4 August 2026) - revenue Space $962M, Connectivity $4,291M, AI $2,561M (Q2 2025 $746M, $2,588M, $737M); income from operations Space $(542)M, Connectivity $1,656M, AI $(1,257)M; H1 2026 Space $(1,204)M and Space adjusted EBITDA $(556)M; adjusted EBITDA Connectivity $2,597M, AI $1,146M (Q1 $(609)M); capex $18,369M (AI $15,828M, Connectivity $1,367M); AI depreciation $1,885M; AI R&D $2,178M against $1,122M; advertising $367M against $426M and AI solutions and infrastructure $2,194M against $311M; H1 AI revenue $3,379M; cloud services agreements $14.1B contracted, $1.6B incremental revenue; nameplate compute 1.4 GW from 1.0 GW; Cursor acquisition for $60B; Grok 4.5; launch services revenue $648M (Q1 $330M, Q2 2025 $490M); customer launches 10 (Q1 7, Q2 2025 9); Space revenue $1,581M in H1 against $1,611M; consumer revenue $2,485M (+44%), enterprise and government $1,806M (+108%); subscribers 12.0M; ARPU $66 — Q2 2026 · publ. August 4, 2026 · source ↗
  15. ReportedIt lost $3,973 million in 2023, including a $3,775 million impairment, $1,561 million in 2024 and $6,355 million in 2025.
    SpaceX IPO prospectus (Form 424B4), segment note - revenue Space $3,557M / $3,796M / $4,086M, Connectivity $3,869M / $7,599M / $11,387M, AI $2,961M / $2,620M / $3,201M (2023-2025); income from operations Space $(1)M / $21M / $(657)M, Connectivity $469M / $2,006M / $4,423M, AI $(3,973)M / $(1,561)M / $(6,355)M; adjusted EBITDA Space $997M / $1,154M / $653M, Connectivity $1,602M / $3,849M / $7,168M, AI $1,222M / $347M / $(1,237)M; R&D Space $1,538M / $1,835M / $3,004M, AI $186M / $1,176M / $5,064M; cost of revenue Space $1,669M / $1,541M / $1,352M; capex Space $1,497M / $2,032M / $3,832M, Connectivity $2,455M / $3,498M / $4,178M, AI $463M / $5,633M / $12,727M, total $20,737M in 2025; depreciation and amortization Connectivity $884M / $1,508M / $2,376M, AI $1,180M / $1,679M / $3,568M, Space $757M in 2025, total $6,701M; share-based compensation AI $3M / $16M / $1,063M; AI impairment $3,775M in 2023 — FY2023-FY2025 · publ. June 11, 2026 · source ↗
  16. ReportedThe losses come from building: research and development rose from $186 million in 2023 to $5,064 million in 2025, capital spending from $463 million to $12,727 million, and depreciation and amortisation from $1,180 million to $3,568 million.
    SpaceX IPO prospectus (Form 424B4), segment note - revenue Space $3,557M / $3,796M / $4,086M, Connectivity $3,869M / $7,599M / $11,387M, AI $2,961M / $2,620M / $3,201M (2023-2025); income from operations Space $(1)M / $21M / $(657)M, Connectivity $469M / $2,006M / $4,423M, AI $(3,973)M / $(1,561)M / $(6,355)M; adjusted EBITDA Space $997M / $1,154M / $653M, Connectivity $1,602M / $3,849M / $7,168M, AI $1,222M / $347M / $(1,237)M; R&D Space $1,538M / $1,835M / $3,004M, AI $186M / $1,176M / $5,064M; cost of revenue Space $1,669M / $1,541M / $1,352M; capex Space $1,497M / $2,032M / $3,832M, Connectivity $2,455M / $3,498M / $4,178M, AI $463M / $5,633M / $12,727M, total $20,737M in 2025; depreciation and amortization Connectivity $884M / $1,508M / $2,376M, AI $1,180M / $1,679M / $3,568M, Space $757M in 2025, total $6,701M; share-based compensation AI $3M / $16M / $1,063M; AI impairment $3,775M in 2023 — FY2023-FY2025 · publ. June 11, 2026 · source ↗
  17. ReportedStock pay tells the same story, $3 million in 2023 and $1,063 million in 2025, as xAI's engineers joined the payroll.
    SpaceX IPO prospectus (Form 424B4), segment note - revenue Space $3,557M / $3,796M / $4,086M, Connectivity $3,869M / $7,599M / $11,387M, AI $2,961M / $2,620M / $3,201M (2023-2025); income from operations Space $(1)M / $21M / $(657)M, Connectivity $469M / $2,006M / $4,423M, AI $(3,973)M / $(1,561)M / $(6,355)M; adjusted EBITDA Space $997M / $1,154M / $653M, Connectivity $1,602M / $3,849M / $7,168M, AI $1,222M / $347M / $(1,237)M; R&D Space $1,538M / $1,835M / $3,004M, AI $186M / $1,176M / $5,064M; cost of revenue Space $1,669M / $1,541M / $1,352M; capex Space $1,497M / $2,032M / $3,832M, Connectivity $2,455M / $3,498M / $4,178M, AI $463M / $5,633M / $12,727M, total $20,737M in 2025; depreciation and amortization Connectivity $884M / $1,508M / $2,376M, AI $1,180M / $1,679M / $3,568M, Space $757M in 2025, total $6,701M; share-based compensation AI $3M / $16M / $1,063M; AI impairment $3,775M in 2023 — FY2023-FY2025 · publ. June 11, 2026 · source ↗
  18. ReportedIn 2025 the segment's cost of revenue rose $491 million, $412 million of it infrastructure and cloud-computing costs attributed to growing subscription revenue.
    SpaceX IPO prospectus (Form 424B4), MD&A by segment - Connectivity revenue +96.4% (+$3,730M) in 2024 and +49.8% (+$3,788M) in 2025: consumer +$2,013M (subscribers +96.5%, ARPU -8.1%) and +$2,377M (subscribers +99.9%, ARPU -11.2%), government +$1,250M and +$193M, enterprise +$466M and +$1,218M including mobile +$632M; Q1 2026 +$782M (31.6%): consumer +$656M (subscribers +104.7%, ARPU -22.9%), aviation/maritime/other enterprise +$209M, mobile +$85M, government -$175M; 2025 Connectivity cost of revenue +$1,153M incl. depreciation +$827M. Space revenue +$239M (6.7%) in 2024 (launch services +$620M, Falcon launches 96 to 134, launch and development -$381M) and +$290M (7.6%) in 2025 (launch services flat, launch and development +$298M on the extended NASA CRS contract and a U.S. Department of War contract; Falcon launches 134 to 165; customer launches and average price per launch relatively flat); Starlink launches 63, 89 and 122; 2025 Space cost of revenue -$189M incl. depreciation -$240M; Space R&D +$1,169M (63.7%) in 2025 on Starship; Q1 2026 Space revenue -28.4% on fewer customer launches, Falcon launches 36 to 40. AI revenue -11.5% (-$341M) in 2024 (advertising -$595M on the loss of advertising partners; subscriptions +$157M, data licensing +$90M) and +22.2% (+$581M) in 2025 (advertising +$116M; AI solutions and infrastructure +$465M incl. subscriptions +$365M, data licensing +$88M); in 2023 and 2024 substantially all AI revenue came from X; Q1 2026 advertising -$100M during an ad-platform overhaul; 2025 AI cost of revenue +$491M incl. infrastructure and cloud computing +$412M; company revenue +$3,628M (34.9%) in 2024 and +$4,659M (33.2%) in 2025 — FY2023-Q1 2026 · publ. June 11, 2026 · source ↗
  19. ReportedIn the June 2026 quarter the operating loss narrowed to $1,257 million and adjusted EBITDA turned positive at $1,146 million, from a loss of $609 million in March, because the new cloud revenue arrives with depreciation, $1,885 million in the quarter, that EBITDA leaves out.
    SpaceX Q2 2026 results release (Form 8-K exhibit 99.1, 4 August 2026) - revenue Space $962M, Connectivity $4,291M, AI $2,561M (Q2 2025 $746M, $2,588M, $737M); income from operations Space $(542)M, Connectivity $1,656M, AI $(1,257)M; H1 2026 Space $(1,204)M and Space adjusted EBITDA $(556)M; adjusted EBITDA Connectivity $2,597M, AI $1,146M (Q1 $(609)M); capex $18,369M (AI $15,828M, Connectivity $1,367M); AI depreciation $1,885M; AI R&D $2,178M against $1,122M; advertising $367M against $426M and AI solutions and infrastructure $2,194M against $311M; H1 AI revenue $3,379M; cloud services agreements $14.1B contracted, $1.6B incremental revenue; nameplate compute 1.4 GW from 1.0 GW; Cursor acquisition for $60B; Grok 4.5; launch services revenue $648M (Q1 $330M, Q2 2025 $490M); customer launches 10 (Q1 7, Q2 2025 9); Space revenue $1,581M in H1 against $1,611M; consumer revenue $2,485M (+44%), enterprise and government $1,806M (+108%); subscribers 12.0M; ARPU $66 — Q2 2026 · publ. August 4, 2026 · source ↗
  20. ReportedAI capital expenditure was $15,828 million in the June quarter alone, more than all the revenue the segment has reported since the start of 2023, $12,161 million.
    SpaceX Q2 2026 results release (Form 8-K exhibit 99.1, 4 August 2026) - revenue Space $962M, Connectivity $4,291M, AI $2,561M (Q2 2025 $746M, $2,588M, $737M); income from operations Space $(542)M, Connectivity $1,656M, AI $(1,257)M; H1 2026 Space $(1,204)M and Space adjusted EBITDA $(556)M; adjusted EBITDA Connectivity $2,597M, AI $1,146M (Q1 $(609)M); capex $18,369M (AI $15,828M, Connectivity $1,367M); AI depreciation $1,885M; AI R&D $2,178M against $1,122M; advertising $367M against $426M and AI solutions and infrastructure $2,194M against $311M; H1 AI revenue $3,379M; cloud services agreements $14.1B contracted, $1.6B incremental revenue; nameplate compute 1.4 GW from 1.0 GW; Cursor acquisition for $60B; Grok 4.5; launch services revenue $648M (Q1 $330M, Q2 2025 $490M); customer launches 10 (Q1 7, Q2 2025 9); Space revenue $1,581M in H1 against $1,611M; consumer revenue $2,485M (+44%), enterprise and government $1,806M (+108%); subscribers 12.0M; ARPU $66 — Q2 2026 · publ. August 4, 2026 · source ↗
  21. Moat Explorer calcAI capital expenditure was $15,828 million in the June quarter alone, more than all the revenue the segment has reported since the start of 2023, $12,161 million.
    Moat Explorer calculation from SpaceX's prospectus, Q2 2026 10-Q and results release: cumulative 2023-2025 income from operations Connectivity $6,898M, Space $(637)M, AI $(11,889)M; 2025 revenue shares Connectivity 61.0%, Space 21.9%, AI 17.1%; 2023-2025 growth Connectivity x2.94 (71.6% a year), Space +14.9% (7.2% a year), AI +8.1%; AI share of revenue 18.1% (Q2 2025) and 32.8% (Q2 2026); AI 61.4% of 2025 capex; Connectivity operating margin 12.1%, 26.4%, 38.8% and 38.6% (Q2 2026); non-Starlink Falcon launches 33, 45 and 43; launch-services revenue per customer launch about $54M (Q2 2025), $47M (Q1 2026), $65M (Q2 2026); AI revenue reported since 2023 $12,161M; advertising -14% year on year in Q2 2026 — 2023 to Q2 2026 · publ. 2026-09-23 · source ↗
  22. ReportedSpaceX has also agreed to buy Cursor, an AI coding tool, for $60 billion, and released Grok 4.5 in July.
    SpaceX Q2 2026 results release (Form 8-K exhibit 99.1, 4 August 2026) - revenue Space $962M, Connectivity $4,291M, AI $2,561M (Q2 2025 $746M, $2,588M, $737M); income from operations Space $(542)M, Connectivity $1,656M, AI $(1,257)M; H1 2026 Space $(1,204)M and Space adjusted EBITDA $(556)M; adjusted EBITDA Connectivity $2,597M, AI $1,146M (Q1 $(609)M); capex $18,369M (AI $15,828M, Connectivity $1,367M); AI depreciation $1,885M; AI R&D $2,178M against $1,122M; advertising $367M against $426M and AI solutions and infrastructure $2,194M against $311M; H1 AI revenue $3,379M; cloud services agreements $14.1B contracted, $1.6B incremental revenue; nameplate compute 1.4 GW from 1.0 GW; Cursor acquisition for $60B; Grok 4.5; launch services revenue $648M (Q1 $330M, Q2 2025 $490M); customer launches 10 (Q1 7, Q2 2025 9); Space revenue $1,581M in H1 against $1,611M; consumer revenue $2,485M (+44%), enterprise and government $1,806M (+108%); subscribers 12.0M; ARPU $66 — Q2 2026 · publ. August 4, 2026 · source ↗
Sources
Generated September 23, 2026