SpaceX's science fiction dreams come with an astronomical bill
SpaceX shares dropped 11% after the company reported a massive $16 billion expenditure on AI infrastructure for the quarter. Despite beating revenue expectations, investors are concerned about the sustainability of the company's aggressive spending on its AI-powered future.
Why it matters
This reflects a broader market trend where investors are becoming increasingly skeptical of the massive capital expenditures tech giants are pouring into AI infrastructure.
SpaceX's AI bill is nearly as large as its rockets. SERGIO FLORES/AFP via Getty Images Elon Musk's cosmic ambitions come with an astronomical bill, and it's making Wall Street nervous. SpaceX shares fell as much as 11% in after-hours trading, despite the company delivering a revenue beat. SpaceX spent nearly $16 billion on AI infrastructure in the past three months, well above expectations. As an abandoned SpaceX rocket crashes into the moon, Elon Musk's science-fiction ambitions are on their own collision course with Wall Street. SpaceX shares fell as much as 11% in after-hours trading despite the company delivering an earnings beat on Tuesday , as investors expressed anxiety over the astronomical bill for Musk's vision of an AI-powered, space-bound future.
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