{"slug": "spacex-hit-by-surging-ai-costs-as-insiders-prepare-to-sell-their-shares", "title": "SpaceX hit by surging AI costs as insiders prepare to sell their shares", "summary": "SpaceX reported quarterly capital expenditures of $15.8 billion for its xAI unit, which runs the Grok AI service, exceeding analyst expectations of $13.09 billion and nearly doubling from the prior quarter, contributing to an 18.4% decline in after-hours trading on Tuesday. The spending, which comprised most of SpaceX's $18.4 billion total quarterly cap-ex, reversed a 9% intraday gain and added to a $1 trillion value loss since its June 12 IPO, though the company retains a market valuation above $1 trillion. SpaceX also announced a new deal with Nvidia for additional computing power.", "body_md": "For a rocket company, SpaceX is spending a lot of money to build out its AI capacities.\n\nToo much, according to investors.\n\nThe company reported revenues and earnings in its first-ever quarterly update as a public company that the surpassed analysts’ expectations. Most of its revenues came from its Starlink satellite offering.\n\nBut investor focus turned to capital expenditures related to its xAI unit, which runs the Grok AI service. Those hit $15.8 billion, higher than expectations of $13.09 billion according to Bloomberg News data and about double the previous quarter. The AI spending also comprised most of SpaceX’s overall $18.4 billion quarterly spending on cap-ex.\n\nThe report caused SpaceX shares to reverse a healthy run-up during regular trading hours Tuesday. The stock fell some 6.5% in trading after the closing bell, after having surged 9% earlier.\n\nSpaceX immediately became a multi-trillion-dollar company after a record-setting IPO on June 12 — but nearly just as quickly, it erased $1 trillion in value as the stock plunged [amid anticipation of insider stock sales](https://www.nbcnews.com/business/markets/wall-street-betting-billions-elon-musks-spacex-shares-will-keep-tumbli-rcna589534) and broader jitters about the pace of AI spending.\n\nStill, the company continues to enjoy a market valuation of more than $1 trillion, making it one of the most valuable companies in the world. The stock got an additional boost Tuesday after announcing a new deal with Nvidia that will see it provide SpaceX with additional computing power.\n\nInvestor speculation has grown that SpaceX may attempt to merge with its sister company, Tesla. This would give Elon Musk even more control over his multi-faceted technology empire than he already exerts.", "url": "https://wpnews.pro/news/spacex-hit-by-surging-ai-costs-as-insiders-prepare-to-sell-their-shares", "canonical_source": "https://www.nbcnews.com/business/business-news/spacex-earnings-surging-ai-costs-rcna590682", "published_at": "2026-08-04 20:55:49+00:00", "updated_at": "2026-08-04 21:25:45.836470+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-infrastructure", "ai-chips"], "entities": ["SpaceX", "xAI", "Grok", "Starlink", "Nvidia", "Tesla", "Elon Musk", "Bloomberg News"], "alternates": {"html": "https://wpnews.pro/news/spacex-hit-by-surging-ai-costs-as-insiders-prepare-to-sell-their-shares", "markdown": "https://wpnews.pro/news/spacex-hit-by-surging-ai-costs-as-insiders-prepare-to-sell-their-shares.md", "text": "https://wpnews.pro/news/spacex-hit-by-surging-ai-costs-as-insiders-prepare-to-sell-their-shares.txt", "jsonld": "https://wpnews.pro/news/spacex-hit-by-surging-ai-costs-as-insiders-prepare-to-sell-their-shares.jsonld"}}