00:00It's Benzinga bringing Wall Street to Main Street.
00:02SpaceX shares plunged 12% in pre-market trading after investors reacted to a sharp increase in
00:09artificial intelligence spending, despite the company reporting better than expected quarterly
00:13results, according to CNBC. Capital expenditures surged sixfold to $18.4 billion in the second
00:21quarter, with most of the spending directed toward AI. CFO Brett Johnson said,
00:26the company expects AI computing investments to pay back in less than one year.
00:31CEO Elon Musk also raised the company's annual revenue target, saying SpaceX expects to reach
00:37$1 trillion in 2030 instead of 2031. Investors remain focused on the cost of AI investments
00:43and the company's path to profitability ahead of Thursday's insider lockup expiration.
00:49SpaceX is trying to compete in cloud computing by renting out NVIDIA-powered capacity,
00:54even as its AI models lag behind OpenAI and Anthropic.
00:59Shares closed just above $125 on Tuesday, below the $135 IPO price, and sharply lower than their
01:06post-listing high of more than $200. For all things money, visit Benzinga.com.
01:10www.instead.com.com.
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