Across SpaceX (SPCX) and Tesla (TSLA), Elon Musk should consider rationalizing the investor relations teams. This is because all the major announcements regarding these companies are revealed by the world's richest man through his megaphone, X (formerly Twitter), first. This happened again when Musk announced that xAI would be doubling the number of Nvidia chips in the company's AI supercomputer cluster, Colossus 2.
Replying to an X user, Musk tweeted, “@minchoi Colossus 1 is 150k H100, 50k H200 and 30k GB200. Colossus 2 is 110k GB200 and 440k GB300. Another 220k GB300 will be fully operational next week and another 220k in November. If we get lucky, yet another 220k GB300 by late December.”
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This again reiterates that AI remains the centerpiece of the SpaceX story even though the company's Starship rocket reached orbit for the first time yesterday. Notably, SpaceX is still flirting with the $2 trillion market cap mark, while its shares are down 9.6% since the IPO.
However, how does this expansion of Colossus by the end of this year fit into SpaceX's larger AI scheme of things? Let's find out.
www.barchart.com Colossus 2 Is A Colossus
The critical nature of Colossus 2 to xAI's wider AI ambitions can be gauged from the scale at which it operates.
Independent modelers at Epoch AI put the IT load at Colossus 2 near 946 megawatts in the back half of the year, just under a full gigawatt. That already sits in the same neighborhood as San Diego's average draw, which runs around 800 megawatts. The wider Memphis and Southaven campus was described by mid-year as sitting on the order of 1 gigawatt of AI compute, and a third building bought at the close of 2025 was meant to push the whole site toward 2 gigawatts. For comparison, a 2-gigawatt campus would cover roughly 1.5 million homes if it were a city utility.
Further, training of newer Grok models moved mainly onto Colossus 2 and nearby halls after Anthropic agreed in May 2026 to rent essentially all of Colossus 1. That makes the new cluster the home field for SpaceXAI’s own models, while the older site became a wholesale box for a rival. Additionally, Reflection AI, an open-source lab with Nvidia backing, contracted for Colossus 2 hardware at $150 million a month starting 1 July 2026. However, it will be interesting to see what happens when there is serious demand for compute from Grok or Cursor.
On the cost of doubling, a peek at history can give us a hint of the impact on the income statement. A prior buy of 555,000 GPUs was put near $18 billion, which implied about $32400 a unit across a mix of GB200 and GB300 class parts. A true doubling of the current Colossus 2 fleet would mean another order of similar size. If the add is heavier in GB300 (the Street quotes nearer $53,000 a GPU), it would push the extra silicon toward $25 billion to $430 billion before racks, networking, liquid cooling, transformers, and the Southaven plant.
However, having a broader view necessitates this buildout. More energized megawatts mean more parallel experiments, more synthetic data, more post-training, and more inference for Grok and for Cursor agents without waiting for a launch window. It also means SpaceXAI can keep selling surplus hours to Google Reflection and whoever comes next, which funds the very factories that will eventually loft GPUs.
Q2 Lowdown
SpaceX has achieved notable revenue expansion over recent years, climbing from $10.4 billion in 2023 to $18.7 billion in 2025. The company recorded net income of $791 million in 2024 before reporting a net loss of $4.9 billion the following year.
Operating cash flow strengthened during this timeframe, advancing to $6.8 billion in 2025 from $4.5 billion in 2023. The firm closed 2025 with a robust cash balance of $24.7 billion and minimal short-term debt, which helps address liquidity risks.
During the second quarter of 2026, SpaceX generated revenue of $7.8 billion, reflecting a 92% YoY increase. The net loss improved to $541 million from a $1 billion loss in the same period a year earlier. At the end of the quarter, the company held $93.5 billion in cash and cash equivalents.
Capital spending has increased substantially over the past three years, rising from $4.4 billion in 2023 to $20.7 billion in 2025. Investments related to artificial intelligence have grown especially quickly, beginning at $463 million in 2023 as the smallest category among space, connectivity, and artificial intelligence before expanding to $12.7 billion in 2025 and becoming the primary focus of capital allocation. This evolution shows how SpaceX, which originally concentrated on space operations and connectivity offerings, is now establishing artificial intelligence as a foundational element for future growth. AI capital expenditures alone reached $15.8 billion in the second quarter of 2026.
Reviewing the second quarter's revenue mix, connectivity continued to lead with $4.29 billion. The artificial intelligence segment produced $2.56 billion, while the space segment added $962 million.
From a valuation standpoint, SPCX shares remain significantly elevated relative to peers. For example, the price-to-sales ratio of 45.03 times is substantially higher than the sector median.
What Do Analysts Think of SPCX Stock?
Overall, analysts remain cautiously optimistic about SPCX stock. With an overall rating of “Moderate Buy," out of 36 analysts covering SpaceX stock, 24 have a “Strong Buy” rating, two have a “Moderate Buy” rating, seven have a “Hold” rating, one has a “Moderate Sell” rating, and two have a “Strong Sell” rating. The mean target price of $220.03 indicates potential upside of about 51.3% from current levels.
www.barchart.com On the date of publication, Pathikrit Bose did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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