Home / Business and Economy / SpaceX Invests $20B in AI Amidst Tunnel Payments
SpaceX Invests $20B in AI Amidst Tunnel Payments
21 May
Summary
- SpaceX leased office space to Boring Company for $1.2 million.
- SpaceX paid $1 million for a tunnel dug by Boring Company.
- SpaceX directed 60% of 2025 capital spending to xAI.
SpaceX has demonstrated significant financial connections with Elon Musk's other companies, The Boring Company and xAI. The tunneling venture, The Boring Company, has paid SpaceX approximately $1.2 million for office leases. Furthermore, SpaceX invested about $1 million for The Boring Company to construct a tunnel at its headquarters in Bastrop, Texas.
SpaceX's financial commitments extend to xAI, Musk's artificial intelligence company. Earlier in 2026, SpaceX was valued at $1.25 trillion following its merger with xAI. However, this consolidation came at a considerable cost to SpaceX, which directed roughly 60 percent of its capital spending in 2025 towards xAI, amounting to about $20 billion. Despite this investment, xAI experienced billions in losses last year with only a 22 percent year-over-year revenue increase.
