SpaceX’s AI Splurge Puts a Damper on First Earnings After IPO

SpaceX shares fell after the Elon Musk-led company disclosed higher-than-expected spending on its artificial intelligence business, spoiling an inaugural earnings release that broadly exceeded Wall Street estimates.

The rocket, satellite and AI conglomerate’s capital expenditures soared to $28.5 billion in the first half of this year, more than four times its spending a year earlier. That outlay is nearly as much as the amount raised in the biggest initial public offering ever before SpaceX’s record listing in June.

Musk is steering the vast majority of SpaceX’s expenditures toward AI, a business that is growing rapidly, though not at the ...

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