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SpaceX is on a cash-raising tear post-IPO, but its stock is getting hammered as investors realize the company is burning billions on unproven businesses.
SpaceX rented out its data center computers to Reflection AI, a startup building open-source artificial intelligence models (think of it like renting out server space in a warehouse). Reflection AI will pay $150 million per month for access to powerful computer chips that train AI systems. This deal matters because SpaceX's AI division lost $6.35 billion in 2025 alone—any revenue helps, though this contract is tiny relative to those losses.
SpaceX went to the bond market and borrowed $25 billion (bonds are basically IOUs where you promise to pay back the money plus interest later). The company had wanted $20 billion but investors were so eager to lend that they got $5 billion extra—receiving nearly $90 billion in total requests. SpaceX says it'll use the money to repay an older, more expensive loan and fund rockets, satellite internet, and AI projects.
SpaceX shares plunged from their June debut as investors realized the company has lost $41.3 billion since it started in 2002 and is burning cash faster than a rocket burns fuel. After briefly becoming bigger than Amazon and Microsoft, SpaceX dropped 16% in one day and is now only 1% above its IPO price of $150. The reality check: Starlink (satellite internet) is the only part of SpaceX actually making money.