Elon Musk’s empire contains a number larger than the entire annual revenue of most public companies on the NYSE. It sits inside SpaceX’s pre-IPO disclosures, and once you see it, Musk’s AI strategy snaps into focus.
The Hidden Number
Per IPO paperwork, the AI segment inside the combined SpaceX-xAI entity posted a loss from operations of $(6,355) million in 2025, up from $(1,561) million in 2024. The pace accelerated into this year: a $(2,469) million Q1 2026 loss, versus $(936) million in Q1 2025. The IPO documents attribute the bleed to cloud computing and GPU depreciation, data center infrastructure spend, and employee expenses.
SpaceX merged with xAI on February 2, 2026, folding in X (formerly Twitter) and Grok, which had roughly 117 million monthly active users as of March 31, 2026. COLOSSUS II, which SpaceX calls the first gigawatt-scale AI training cluster, is the spine of that spend. The annualized AI loss alone exceeds the full-year revenue of plenty of S&P 400 names.
Tesla Is Paying Its Own Tab
Tesla (NASDAQ:TSLA | TSLA Price Prediction) is funding a parallel buildout. Q1 2026 R&D ran $1.95 billion, capex hit $2.493 billion (+67% YoY), and operating expenses grew 37% YoY. CFO Vaibhav Taneja told investors, “our current expectation for 2026 is over $25 billion of CapEx”, with negative free cash flow for the rest of the year baked in.
Then there is cross-pollination. Tesla has a $2B investment in SpaceX equity and a joint $3 billion-ish research fab at Giga Texas. Musk framed Optimus as “our biggest product, not just Tesla’s biggest product ever, but probably the biggest product ever”. I’ve tracked Tesla’s capital intensity for years, and the shift from car company to AI infrastructure spender is the single most expensive pivot I have watched in public markets.
The market is wary. Polymarket gives a 13% probability of an Optimus release by December 31, 2026 and just 7.5% odds of a California robotaxi launch by June 30. Reddit captured the mood with the viral “Musk’s infinite money glitch” post, peaking at 3,601 upvotes.
NVIDIA Sells the Shovels
NVIDIA (NASDAQ:NVDA) sits on the other side of the trade. Q1 FY2026 revenue of $44.062 billion, with Data Center at $39.112 billion (+73% YoY), and Jensen Huang called the moment “the largest infrastructure expansion in human history”.
The Payoff Question
Musk is building a vertically integrated AI machine across Tesla, SpaceX, and xAI, and the bill already runs into the multi-billions per quarter. You should be bullish on TSLA if you believe Optimus, Robotaxi, and the Terafab pay off before cash burn forces dilution. You should be cautious if you believe NVIDIA keeps collecting 75% gross margins while everyone else funds the experiment.
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