SpaceX posted a pro forma net loss of nearly $5 billion for 2025 after acquiring xAI in an all-stock deal completed on February 2, 2026. The main drag was not launch operations or Starlink. It was xAI, which spent heavily on GPU capacity and data centers, with cash burn of about $9.5 billion over the first nine months, or roughly $1 billion per month.
xAI losses reshaped the combined financial picture
On a standalone basis, SpaceX did not show a collapse in operating performance. The source, citing Reuters, said SpaceX generated around $15 billion to $16 billion in revenue in 2025 and about $8 billion in EBITDA. Under GAAP net income, though, the company still recorded an estimated $2.4 billion net loss in the first nine months, as depreciation tied to rocket and satellite capital spending weighed on reported earnings.
The bigger hit came from xAI. Citing Bloomberg, the source said xAI posted a $1.46 billion net loss in the third quarter of 2025, after a $1 billion loss in the prior quarter. Over the first nine months, it burned about $9.5 billion in cash. Revenue was running at roughly $500 million annualized, while annualized net loss stood near $5 billion. Once xAI became a wholly owned subsidiary, those losses were folded into the group accounts.
Starlink remained the main revenue engine
At the same time, Starlink continued to support the broader business. The source said Starlink revenue climbed to about $11.8 billion in 2025, exceeding SpaceX launch service revenue for the second straight year. That made it the largest revenue contributor inside the group. The contrast is sharp: SpaceX’s existing businesses were still generating operating earnings, while the combined loss reflected the pace and scale of AI infrastructure investment.
Orbital data center and chip plans moved in parallel
SpaceX’s AI push extends beyond buying GPUs. According to the source, the company filed with the FCC on January 30 to launch as many as 1 million satellites for an Orbital Data Center system. Musk also said publicly that within two to three years, the cheapest source of AI compute would be in space.
The report also pointed to Terafab, a chip venture announced in March by SpaceX, Tesla, and xAI. The project was described as a $20 billion to $25 billion wafer fab plan targeting 2-nanometer manufacturing, with an initial goal of 100,000 wafers per month. The stated aim was to supply future orbital data centers.
IPO target moved above $2 trillion
The source added that SpaceX confidentially filed an S-1 with the SEC on April 1 and was expected to begin its roadshow in June. In early talks with potential investors, the company reportedly lifted its valuation target to above $2 trillion. The fundraising range being discussed was said to be between $25 billion and $75 billion.