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20 May 2026, 23:00

xAI burned $6.4B last year. SpaceX’s IPO filing shows why the spending is far from over

BitcoinWorld xAI burned $6.4B last year. SpaceX’s IPO filing shows why the spending is far from over Elon Musk’s artificial intelligence company xAI recorded a staggering $6.4 billion operating loss in 2025 on just $3.2 billion in revenue, according to financial disclosures embedded in SpaceX’s IPO filing. The numbers, made public for the first time, reveal a widening gap between spending and earnings as Musk pushes to scale his Grok AI model to unprecedented size. The numbers behind the losses SpaceX’s filing with the SEC offers the first detailed look at xAI’s finances, and the picture is one of aggressive investment. In 2024, xAI lost $1.56 billion on $2.62 billion in revenue. By 2025, losses had more than quadrupled to $6.4 billion, while revenue grew only modestly to $3.2 billion. The filing attributes much of the revenue growth to “AI solutions and infrastructure revenue,” which totaled $465 million in 2025, including $365 million from X and Grok subscriptions and $88 million from data licensing. Advertising contributed an additional $116 million. Capital expenditures tell an even starker story. AI segment capex climbed from $12.7 billion in 2025 to $7.7 billion in the first quarter of 2026 alone — an annualized run rate of roughly $30.8 billion, more than double the previous year. The spending is directed largely at compute infrastructure, including xAI’s Colossus and Colossus II data centers, which together provide about 1 gigawatt of computing power. Why the spending is accelerating The filing reveals that SpaceX intends to scale Grok to “multiple trillions of parameters,” a dramatic increase that the company describes as a “step change in reasoning in depth and overall intelligence.” Achieving that scale will require significantly more compute power, and the filing’s “use of proceeds” section explicitly mentions an “expansion of our AI compute infrastructure.” SpaceX argues that owning its hardware and vertically integrating across the AI stack allows it to “train and iterate frontier models at lower cost and higher velocity.” But the near-term cost of that strategy is enormous, and the filing does not project when xAI might become profitable. Orbital data centers: a long-term bet Musk has previously suggested that moving AI training and inference to orbital data centers could dramatically reduce costs. The filing now provides a concrete timeline: SpaceX intends to begin deploying orbital AI compute satellites as early as 2028. “The future of AI will be determined by control of the physical stack,” the filing states. That vision, however, remains years from reality and would require overcoming significant technical and regulatory hurdles. User adoption remains limited Despite the heavy investment, Grok’s user base remains relatively small. As of March 2026, SpaceX recorded 117 million monthly active users for Grok AI features, out of 550 million total MAUs across Grok and X combined. That means only about one-fifth of the combined ecosystem is actively using the AI features. For context, competitor Anthropic reportedly expects a 130% revenue jump to $10.9 billion in the second quarter of 2026, leading to its first operating profit. What this means for the IPO and investors SpaceX’s IPO is expected to be one of the largest in history, with a potential valuation of $1.75 trillion. But the filing makes clear that the combined company — SpaceX, xAI, and X — will continue to burn cash at an accelerating rate. Investors will need to weigh Musk’s long-term vision against the immediate financial reality. The filing provides audited numbers that give the market a factual basis for that assessment, but the path to profitability remains uncertain. Conclusion The SpaceX IPO filing offers an unprecedented window into the finances of xAI and Musk’s broader AI ambitions. The numbers show a company spending heavily to build frontier AI infrastructure, with losses growing faster than revenue. Whether that bet pays off will depend on Grok’s ability to attract users and generate revenue at scale — and on whether orbital data centers can deliver on their promise of lower costs. For now, the spending is far from over. FAQs Q1: How much did xAI lose in 2025? A: xAI recorded an operating loss of $6.4 billion on $3.2 billion in revenue, according to SpaceX’s IPO filing. Q2: What is SpaceX’s plan for Grok AI? A: SpaceX intends to scale Grok to “multiple trillions of parameters,” requiring significant additional compute investment, and plans to begin deploying orbital AI compute satellites as early as 2028. Q3: How many people use Grok? A: As of March 2026, Grok AI features had 117 million monthly active users out of 550 million total MAUs across Grok and X combined. This post xAI burned $6.4B last year. SpaceX’s IPO filing shows why the spending is far from over first appeared on BitcoinWorld .

20 May 2026, 22:55

Polymarket moves to list parlays while SEC seeks public input on prediction market ETFs

The "combinatorial outcome contracts" would resolve if every part of an underlying contract resolved, according to a filing.

20 May 2026, 22:54

Trump administration weighs AI model reviews as tech giants race to ship faster

The Trump administration is looking at a new order that would let US security agencies check powerful AI models before companies put them out for the public. The plan came up in a White House briefing led by the Office of the National Cyber Director. The meeting included OpenAI, Anthropic, and Reflection AI, all private companies, so there are no stock tickers for them. The order could be signed by Donald Trump as soon as Thursday. After the first mention, Trump is the name used here. The plan would set up a “voluntary framework” for companies building frontier AI systems. Under that setup, AI firms would tell the US government before major launches. They could also give agencies access to advanced models up to 90 days before those models reach users. Trump lets agencies check frontier AI systems before public launches The AI section of the order will emphasize “covered frontier models,” which means that the government will first determine which AI technologies are sufficiently significant to receive additional review. This won’t involve an examination in one particular office but rather several agencies who will evaluate models before their release. The expected executive order will have two key provisions, one related to cybersecurity and another one related to advanced AI models. While the cybersecurity provision will target the Pentagon, national security agencies, hospitals, financial institutions, and other critical infrastructure throughout the country, the second provision is related to expanding the pool of cyber experts hired. This includes increasing the number of employees at the US Tech Force – a program launched by OPM director Scott Kupor late last year. According to Scott Kupor, the purpose of the US Tech Force program was to recruit top-tier AI specialists in federal agencies. The order would also push AI companies and the government to share more details about security breaches. That part is about speed. If a company finds a weak spot or gets hit, federal teams want that information faster, not three meetings and a dead inbox later. Treasury builds a clearinghouse while NSA gets final AI review power The Treasury Department would lead a voluntary project with AI companies and owners of critical infrastructure. That project would create a clearinghouse within 30 days. The job of the clearinghouse would be simple: find security holes and help fix them. The Office of the National Cyber Director, the National Security Agency, and the Cybersecurity and Infrastructure Security Agency would support Treasury’s work. CISA and the National Institute of Standards and Technology would also help build the model review process. The second section would give Treasury, CISA, and NIST 60 days to create a classified test process for deciding what counts as a covered frontier model. White House chief of staff Susie Wiles, National Cyber Director Sean Cairncross, and Michael Kratsios, who leads the White House Office of Science and Technology Policy, would also take part. After that, Susie, Sean, and Michael would stay tied to the process through their offices. The NSA would have the final say after speaking with the other agencies. The White House started meeting with tech and cyber groups after Anthropic showed Mythos last month to a small group of tech companies and security researchers. A White House official called the reports “speculation” and said any real announcement would come from Trump. The drafting has also shown disagreements inside the Trump administration over how much review frontier AI models should face before launch. The smartest crypto minds already read our newsletter. Want in? Join them .

20 May 2026, 21:58

OpenAI Reveals Plans to File for IPO Like Anthropic and SpaceX: WSJ

Sam Altman’s OpenAI is preparing to confidentially file a draft prospectus for an initial public offering as soon as Friday, according to reports citing people familiar with the matter. The move would place the ChatGPT maker among several large technology companies preparing for public listings in 2026. The company is working with Goldman Sachs and Morgan Stanley on the planned filing. A public debut could take place later this year, though the schedule may change because the process is still private and subject to market conditions, regulatory review and internal planning. OpenAI is valued at more than $850 billion by private investors, according to the reports. A listing at or near that level would make it one of the largest technology IPOs ever and would give public investors direct exposure to one of the main companies behind the artificial intelligence boom. OpenAI IPO Filing Could Come This Week The confidential filing would allow OpenAI to begin the SEC review process without immediately making its full financial details public. Companies often use confidential filings to prepare for an IPO while assessing investor demand and market conditions. An OpenAI representative said the company regularly evaluates strategic options as part of normal governance and that its focus remains on execution. The company did not confirm a specific IPO date. OpenAI Chief Financial Officer Sarah Friar previously said it was good practice for a company of OpenAI’s size to operate with the discipline expected of public companies. She did not give a firm timeline for a listing. The expected filing comes as OpenAI continues to raise large amounts of capital to support model development, computing capacity and data center needs. The company has raised more than $180 billion from investors, according to CNBC, while continuing to spend heavily on infrastructure. Legal Ruling Removes One Barrier The IPO preparations come shortly after OpenAI won a court decision in a case brought by Elon Musk. Musk sued OpenAI, Chief Executive Sam Altman and President Greg Brockman, alleging that the company moved away from its original nonprofit mission. An advisory jury in Oakland, California, found that Musk waited too long to bring the claims. District Court Judge Yvonne Gonzalez Rogers adopted the verdict. Musk criticized the decision on X and said he plans to appeal to the Ninth Circuit U.S. Court of Appeals. Microsoft, which had faced an aiding-and-abetting claim in the case, was also cleared of liability. The ruling reduces one legal issue around OpenAI as the company prepares for possible public market scrutiny. OpenAI has grown quickly since launching ChatGPT in 2022. The product helped expand public use of generative AI and pushed major technology companies to increase spending on artificial intelligence tools, chips and cloud infrastructure. SpaceX and Anthropic Add IPO Pressure OpenAI’s IPO planning comes as SpaceX and Anthropic are also preparing for potential public listings. SpaceX, led by Elon Musk, is expected to disclose its IPO prospectus soon, with Goldman Sachs in the lead left role and Morgan Stanley among the top banks. SpaceX is reportedly targeting a Nasdaq listing under the ticker SPCX. Reports have said the company could seek a valuation between $1.75 trillion and $2 trillion, with a large capital raise tied to Starlink, launch services, and its merger with xAI. Anthropic, the maker of Claude, is also being watched as a possible IPO candidate. The company has been linked to a potential public debut later in 2026 and is reportedly seeking funding at a valuation that could approach $900 billion. Source: X However, prediction market activity also showed traders assigning stronger odds to OpenAI reaching the public market before Anthropic. According to Coinbase data shared on May 20, the reported OpenAI IPO filing news pushed the market-implied chance of OpenAI listing before Anthropic to 85%, while Anthropic’s odds fell to 28%.

20 May 2026, 21:45

Anthropic to pay xAI $1.25 billion per month for compute in landmark neocloud deal

BitcoinWorld Anthropic to pay xAI $1.25 billion per month for compute in landmark neocloud deal In a deal that reshapes the economics of AI infrastructure, Anthropic has agreed to pay xAI $1.25 billion per month through May 2029 for 300 megawatts of compute capacity, securing the entire output of the Colossus 1 data center near Memphis, Tennessee. The transaction, revealed in SpaceX’s S-1 filing with the SEC, could generate over $40 billion in revenue for xAI over the life of the contract. Neocloud model emerges The agreement positions xAI as a hybrid player in the AI infrastructure market — a so-called neocloud that both builds data centers for its own AI models and sells excess capacity to competitors. The filing states the deal “allows us to monetize unused compute capacity in our infrastructure,” with xAI noting it expects to enter into similar contracts in the future. Anthropic receives a discounted rate for the first two months as xAI completes its ramp-up, after which the full $1.25 billion monthly fee takes effect. Either party may terminate the contract with 90 days’ notice, providing a measure of flexibility in a rapidly shifting market. Why xAI needed the deal The arrangement reveals a strategic pivot for xAI. Usage of its flagship AI assistant, Grok, has declined significantly in recent months, freeing up server capacity that the company is now selling to one of its closest competitors. The filing acknowledges the dual monetization strategy: “We believe our dual monetization strategy provides multiple pathways to generate returns on invested capital.” Industry analysts interpret the move as a sign that xAI overbuilt its compute capacity and needed to find a revenue source ahead of a potential public offering. By offloading unused infrastructure to Anthropic, xAI transforms a fixed cost into a profit center while maintaining its own AI ambitions. Impact on the AI infrastructure market The deal underscores a broader trend in AI infrastructure: the emergence of neocloud providers that blend hyperscaler capabilities with startup agility. Most players either build data centers exclusively for themselves or for third parties — rarely both simultaneously. xAI’s hybrid model could become a template for other AI companies facing similar capacity utilization challenges. For Anthropic, the agreement secures guaranteed compute at scale, a critical resource for training and deploying large language models. The company’s willingness to commit over $40 billion signals confidence in sustained demand for AI compute, even as the industry debates the efficiency of future models. Conclusion The Anthropic-xAI compute deal represents a significant evolution in AI infrastructure strategy, turning excess capacity into a revenue stream while securing long-term compute for a major AI player. As the neocloud model gains traction, similar arrangements may become more common, reshaping how AI companies manage their capital-intensive infrastructure needs. FAQs Q1: How much will Anthropic pay xAI for compute? Anthropic will pay $1.25 billion per month through May 2029, with a discounted rate for the first two months. The total could exceed $40 billion. Q2: What is a neocloud? A neocloud is an AI company that builds data centers for its own use and sells excess compute capacity to others, offsetting infrastructure costs. Q3: Why is xAI selling compute to a competitor? xAI’s Grok usage has declined, freeing up server capacity. The deal monetizes unused infrastructure ahead of a potential IPO. This post Anthropic to pay xAI $1.25 billion per month for compute in landmark neocloud deal first appeared on BitcoinWorld .

20 May 2026, 21:20

US Dollar Index: Disconnect With Yields Persists, DBS Analysts Say

BitcoinWorld US Dollar Index: Disconnect With Yields Persists, DBS Analysts Say Singapore, April 2025 – Analysts at DBS Bank have highlighted a persistent and notable disconnect between the US Dollar Index (DXY) and US Treasury yields, a divergence that has puzzled many market participants. While yields have moved in response to shifting expectations around Federal Reserve policy and inflation data, the dollar has not followed its traditional correlation pattern, prompting questions about the underlying drivers of currency markets. The Nature of the Disconnect Historically, the US Dollar Index and US Treasury yields have exhibited a strong positive correlation. When yields rise, reflecting higher interest rates or stronger economic growth expectations, the dollar typically strengthens as foreign capital flows into US assets. Conversely, falling yields often coincide with a weaker dollar. However, DBS notes that this relationship has broken down in recent weeks, with yields holding relatively elevated levels while the DXY has edged lower. According to DBS strategists, the divergence suggests that other factors are now playing a more dominant role in determining the dollar’s value. These include shifting global risk appetite, the relative performance of other major economies, and technical positioning in the forex market. The bank’s analysis points to a scenario where the dollar is no longer solely a function of US interest rate differentials. What Is Driving the Dollar Weaker? Several forces appear to be pulling the dollar away from its yield-driven anchor. One key factor is the improving economic outlook in Europe and parts of Asia, which has reduced the safe-haven appeal of the greenback. Additionally, expectations that the Federal Reserve may soon conclude its tightening cycle have diminished the interest rate advantage the dollar previously enjoyed. Market participants are also closely watching US fiscal policy and debt dynamics. Concerns over the sustainability of US government debt levels, while not yet acute, have contributed to a more cautious view on the dollar’s long-term trajectory. DBS analysts emphasize that while the current disconnect is notable, it does not necessarily signal a structural shift, but rather a temporary phase of market repricing. Implications for Traders and Investors For forex traders, the persistence of this disconnect introduces complexity. Traditional yield-based trading strategies may underperform until the correlation reasserts itself. DBS recommends a more nuanced approach, incorporating broader macroeconomic indicators and cross-asset analysis. Investors with international exposure should also be mindful that a weaker dollar could boost returns on non-US assets when converted back into dollars. The DBS view aligns with a growing consensus among currency analysts that the dollar’s fate is increasingly tied to global growth narratives rather than just US monetary policy. This shift underscores the importance of a diversified perspective in currency forecasting. Conclusion The ongoing disconnect between the US Dollar Index and Treasury yields, as highlighted by DBS, reflects a complex interplay of global economic forces, shifting risk sentiment, and evolving monetary policy expectations. While the correlation may eventually reassert itself, the current environment demands a more holistic analysis from market participants. Understanding these dynamics is crucial for navigating the forex market in the months ahead. FAQs Q1: Why is the US Dollar Index not following Treasury yields? The traditional correlation has weakened due to factors such as improved global growth prospects, reduced safe-haven demand for the dollar, and changing expectations around Federal Reserve policy. These forces are currently overriding the usual yield-driven relationship. Q2: Does this disconnect signal a long-term trend? DBS analysts suggest the disconnect is likely a temporary phase rather than a structural shift. However, if global economic divergence persists, the dollar may continue to trade independently of yields for an extended period. Q3: How should investors adjust their strategies? Investors should avoid relying solely on yield differentials for dollar trading. Incorporating broader macroeconomic indicators, such as global growth data and risk appetite measures, can provide a more accurate picture of currency direction. This post US Dollar Index: Disconnect With Yields Persists, DBS Analysts Say first appeared on BitcoinWorld .