SpaceX’s AI splurge puts a damper on debut earnings after IPO
Shares tumbled as much as 8.8% in U.S. post-market trading after it said capital spending jumped to about $18.4 billion in the second quarter.
SpaceX experienced a dip in its stock value on Tuesday following the company's revelation of increased investments in its artificial intelligence division. The news caused the shares of entrepreneur Elon Musk's corporation, which encompasses rocket, satellite, and AI technology, to plummet by up to 8.8% in U.S. post-market trading.
The drop came after SpaceX disclosed that its capital spending surged to approximately $18.4 billion in the second quarter. During a conference call with analysts, Musk expressed optimism regarding the rapid progress of AI development, stating, "We expect the cadence of AI development to improve dramatically." Despite beating expectations for revenue, AI-related losses, and growth in Starlink subscribers, the company's financial performance failed to satisfy Wall Street, leading to a disappointing debut earnings report following its IPO.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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