xAI inside SpaceX: what the filings say about Grok, Colossus and cash

xAI, the maker of the Grok models, is now a wholly owned subsidiary of SpaceX, which became a listed company in June 2026. SpaceX's second quarter filing shows its AI segment spent $15.828 billion on capital expenditure in one quarter and reports 1.4 gigawatts of compute. The same filing shows revenue growing fast and a company still losing money.

This post reads those public filings in plain language. Everything is as filed with the US Securities and Exchange Commission (SEC) unless stated otherwise, and nothing here is investment advice or a forecast.

Key numbers at a glance

All dollar figures are US dollars. They come from SpaceX's second quarter 2026 earnings release and quarterly report (Form 10-Q) for the quarter ended 30 June 2026, filed 4 August 2026. The company reports in millions; figures here are converted to billions where that reads better. Figures are unaudited quarterly numbers.

• Total revenue, Q2 2026: $7.814 billion, against $4.071 billion in Q2 2025, up 92 percent.
• AI segment revenue, Q2 2026: $2.561 billion, against $0.737 billion a year earlier.
• Space segment revenue: $0.962 billion. Connectivity segment revenue: $4.291 billion.
• AI capital expenditure, Q2 2026: $15.828 billion, against $0.749 billion a year earlier.
• Total capital expenditure, Q2 2026: $18.369 billion, against $2.825 billion. First half of 2026: $28.476 billion.
• Net loss, Q2 2026: $0.541 billion, against $1.008 billion a year earlier. First half: $4.817 billion, against $1.536 billion.
• Cash and equivalents at 30 June 2026: $93.522 billion, plus $6.487 billion of marketable securities. The release says about $100 billion in total.
• AI nameplate compute: 1.4 gigawatts, against 0.4 gigawatts in Q2 2025 (see the data note below).
• Cloud Services Agreements: $14.1 billion of contracted sales, producing $1.6 billion of incremental AI infrastructure revenue in the quarter.
• AI segment adjusted EBITDA: $1.146 billion, against a loss of $0.276 billion a year earlier.
• AI segment loss from operations: $1.257 billion, against $1.524 billion.
• AI research and development spending: $2.178 billion in the quarter.
• One unnamed customer: 19.5 percent of consolidated Q2 revenue, related to the AI segment.
• xAI merger completed: 2 February 2026, per the 10-Q.
• Grok 4.5: released in July 2026, described in the release as a 1.5 trillion parameter model.

How xAI came to sit inside SpaceX

The 10-Q is the cleanest source on this. It says SpaceX completed its acquisition of X.AI Holdings Corp. on 2 February 2026, which it calls the xAI Merger Date, and that xAI became a wholly owned subsidiary. The accounting note describes the transaction as a "common control merger effected through a share exchange." A common control merger is one where both companies are controlled by the same party before and after the deal, which changes how the combined financial statements are prepared. The accounting note does not name the controlling party. The statement of equity shows the conversion of xAI preferred stock in the merger and a repurchase of common stock; the full exchange terms are not set out in the quarterly report.

The AI segment is described in the 10-Q as "a vertically integrated AI platform spanning a frontier LLM Grok." SpaceX reports three segments: Space (launch and spacecraft), Connectivity (the satellite internet business) and AI. The AI segment also contains advertising revenue, which in the release is $0.367 billion in Q2 2026 against $0.426 billion a year earlier. The release also refers to Grok and X subscription revenues, which suggests the segment includes the X platform, though the filing does not say so in plain words.

SpaceX then became a public company. The SEC filing list shows a registration of securities with an exchange on 10 June 2026, a notice that the registration statement was declared effective on 11 June, and a final prospectus filed on 12 June 2026. A current report filed 16 June 2026 refers to the company's Class A common stock under the symbol SPCX. This post does not give the offering size or price. If you need them, open the final prospectus on the SEC's EDGAR system.

Two later filings tell part of the financing story.

• A merger agreement with Cursor. On 16 June 2026 SpaceX entered an agreement to acquire Anysphere, Inc., the company behind the Cursor coding tool, at an "implied equity value of Cursor of $60.0 billion," paid in SpaceX Class A shares. The filing says closing was expected in the third quarter of 2026, subject to conditions including regulatory approvals. As of 19 October 2026, the filings cited here do not confirm whether it has closed.
• Senior notes. On 22 June 2026 SpaceX filed a notice launching an offering of senior unsecured notes. The stated use was to repay a bridge loan in full, pay fees and expenses, and fund general corporate purposes. A bridge loan is short term borrowing used until longer term financing arrives. The filing gave cash of about $100.8 billion as of 19 June 2026 and did not state the size or rate of the notes.

What the second quarter numbers show

Revenue is growing in every segment

Total revenue nearly doubled, rising 92 percent. The fastest growing part was AI, where revenue went from $0.737 billion to $2.561 billion. Inside that, "AI solutions and infrastructure" revenue was $2.194 billion, up from $0.311 billion. That category is mostly renting out computing capacity, as the next section explains. Connectivity grew from $2.588 billion to $4.291 billion, and Space from $0.746 billion to $0.962 billion.

Spending is far ahead of revenue

Capital expenditure, or capex, is money spent on long lived assets such as data centers and chips. SpaceX's total capex in Q2 2026 was $18.369 billion, and $15.828 billion of it was in the AI segment. A year earlier the AI segment's capex was $0.749 billion, so the figure is roughly twenty one times higher. For the six months ended 30 June 2026, total capex was $28.476 billion.

The balance sheet shows where some of it sits. The 10-Q lists $12.554 billion of construction in progress, which it says includes AI infrastructure that has not yet been placed in service. It also shows AI goodwill of $11.130 billion, a bookkeeping amount that arises from acquisitions.

Profit: mixed depending on the measure

SpaceX's net loss was $0.541 billion in Q2, narrower than the $1.008 billion loss a year earlier, but the six month loss widened to $4.817 billion from $1.536 billion. The AI segment's loss from operations was $1.257 billion, a smaller loss than the $1.524 billion a year earlier. Yet its adjusted EBITDA, which strips out some costs, was a profit of $1.146 billion. Adjusted EBITDA stands for earnings before interest, taxes, depreciation and amortization, with further adjustments chosen by the company. It is not an official accounting measure. The gap between a $1.146 billion adjusted profit and a $1.257 billion operating loss shows how large the excluded items, such as depreciation and stock compensation, are. The release does not itemize every adjustment, so this post does not estimate them.

Cash is large

SpaceX held $93.522 billion in cash and equivalents at 30 June 2026, up from $24.747 billion at 31 December 2025, plus $6.487 billion of marketable securities. The release states about $100 billion in total. The jump is consistent with the June public offering, but the release does not give the offering proceeds, so the two cannot be tied exactly.

Colossus, compute and the cloud contracts

Colossus is the name of xAI's large computing cluster. The Q2 release mentions the "continued build-out of Colossus II" and "significant incremental capacity under construction." It gives no GPU count and no capacity for Colossus itself. A GPU, or graphics processing unit, is the kind of chip used to train and run AI models.

What the release does give is "nameplate compute" of 1.4 gigawatts. Nameplate means the rated capacity of the equipment, not how much power it is drawing or how much useful work it does. A gigawatt is a billion watts, the output of a large power plant. The table in the release compares that with 0.4 gigawatts in the prior year quarter. One data note: the release's text describing the highlights appears to attach the 0.4 figure to Q2 2026, which would contradict the table. The table and the prior quarter's reported 1.0 gigawatt are consistent with 0.4 being the year earlier number. Readers should check the release if this detail matters to them.

For comparison with other labs, see the guide to what a gigawatt of AI capacity costs and how OpenAI describes its planned gigawatts.

The more surprising item is that xAI is now selling compute to others. The 10-Q says the AI segment entered "cloud services revenue arrangements" during 2026. These are described as "a stand-ready promise to provide continuous access to reserved compute capacity," with a transaction price made up of fixed monthly fees recognized over time. The release says Cloud Services Agreements represent $14.1 billion of contracted sales, and that they produced $1.6 billion of incremental AI infrastructure revenue in the quarter.

Contracted sales means signed commitments, not cash received. If a customer reserves capacity for years, revenue arrives gradually. The $14.1 billion figure, then, tells you about future revenue only if every contract runs to term.

The filing says one customer, labelled Customer B, accounted for 19.5 percent of consolidated revenue in the second quarter, and that this revenue relates to the AI segment. That works out to about $1.5 billion of the $7.814 billion total. The filing does not name the customer. What it does show is concentration: a large share of AI revenue appears to depend on one buyer.

In plain terms, the AI segment is two businesses. One builds and sells the Grok assistant and earns advertising and subscription revenue. The other runs a computing utility that rents reserved capacity. The second business is very different from the first, because its revenue depends on signed capacity contracts rather than subscriptions or ads.

Grok 4.5

The earnings release says Grok 4.5 was released in July and is "our largest and smartest model yet," described as a 1.5 trillion parameter foundation model. Parameters are the adjustable numbers inside a model, and a larger count usually means more memory and computing to run it, though it does not by itself mean better answers. The release attributes some revenue to Grok and X subscriptions but does not give a separate figure.

The filings do not give Grok 4.5 pricing or detailed model specifications, and no independent test results are cited here. Treat the "largest and smartest" line as the company's description.

How to read a combined company's filing

When an AI lab sits inside a larger listed company, the lab's numbers arrive mixed with others. Three habits help.

First, read the segment table before the headline. SpaceX's total revenue of $7.814 billion hides three very different businesses. Rockets, satellite internet and AI have different margins, different customers and different spending cycles. The AI segment alone carried 86 percent of the quarter's capital expenditure ($15.828 billion of $18.369 billion), though only about a third of revenue ($2.561 billion of $7.814 billion).

Second, separate cash spent from cash earned. Capex is a cash outflow to build things. Revenue from reserved capacity contracts arrives over many months or years. A quarter with huge capex and modest revenue is normal for an infrastructure build, and it says nothing by itself about whether the build will pay off. That depends on utilization and contract terms, which the release does not give.

Third, note what is not said. There is no guidance, no GPU count, no named cloud customer and no contract length in the release. Those gaps are not evidence of anything. They are simply the boundaries of what is public as of 19 October 2026, and the next quarterly report may fill some of them in.

What is firm and what is uncertain

Firm, because it is in SEC filings:

• The segment revenue, capex, net loss and cash numbers in the key numbers list.
• The xAI merger date of 2 February 2026 and the accounting treatment as a common control merger.
• The Cursor merger agreement of 16 June 2026 at an implied equity value of $60.0 billion, and the existence of a senior notes offering to repay a bridge loan.
• The existence of Cloud Services Agreements and an unnamed customer at 19.5 percent of revenue.

Less certain:

• Nameplate compute. It is a rated figure, and the release has an internal inconsistency in its highlight text.
• Contracted sales. They are commitments, and their length and terms are not disclosed.
• GPU counts. None are given.
• Offering size and price. Not covered in this post; see the prospectus.
• Whether the Cursor deal has closed. Not confirmed in the filings cited here.
• Grok quality. Only the company's description is available.

What to watch next

• SpaceX's third quarter report. Look for the AI capex line, nameplate compute, the contracted sales number, and customer concentration. Check the company's investor page for the date.
• Whether the Cursor merger closes. A completed deal would add a coding tool business to the AI segment.
• Terms of the senior notes. The 22 June filing does not give size, rate or maturity.
• A GPU count or a Colossus capacity number. Neither appears in the release.
• Power supply. A gigawatt of compute needs a gigawatt of electricity. Watch for disclosures on how it is sourced.
• Independent benchmarks for Grok 4.5.

Quick check

If you want to know which software components your own products depend on, Safeguard offers SBOM and dependency scanning, and a free scan is available at https://gold.safeguard.sh/scan.

Sources

• SpaceX (Space Exploration Technologies Corp), second quarter 2026 earnings release, SEC Exhibit 99.1, filed 4 August 2026: https://www.sec.gov/Archives/edgar/data/1181412/000162828026052515/earningsreleaseq22608042.htm
• SpaceX, quarterly report on Form 10-Q for the period ended 30 June 2026, filed 4 August 2026: https://www.sec.gov/Archives/edgar/data/1181412/000162828026052535/spcx-20260630.htm
• SpaceX, current report on Form 8-K on the Cursor merger agreement, 16 June 2026: https://www.sec.gov/Archives/edgar/data/1181412/000162828026043411/spaceexplorationtechnologi.htm
• SpaceX, current report on Form 8-K on the senior notes offering, 22 June 2026: https://www.sec.gov/Archives/edgar/data/1181412/000162828026044489/spcx8-kxlaunchseniornotes.htm
• SEC EDGAR filing list for SpaceX, checked 19 October 2026: https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001181412&type=&dateb=&owner=include&count=40

Last reviewed: 19 October 2026.