The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

By Robert Cyran

NEW YORK, May 21 (Reuters Breakingviews) - Elon Musk’s dream machine is a world-leading rocket maker glued to a third-rate chatbot lab. Yet silicon smarts account for over 90% of its claimed potential and three-quarters of capital spending. The problem ahead of a $75 bln IPO: xAI’s paltry growth as rivals hit light-speed.

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CONTEXT NEWS

SpaceX filed its IPO prospectus on May 21. The rocket, satellite and AI company run by Elon Musk is readying an initial public offering that is seeking to raise $75 billion and value the firm at $1.75 trillion, Reuters reported.

The AI segment generated $818 million of revenue in the first quarter of 2026, compared to $727 million in the same period a year ago. The unit had a first-quarter operating loss of $2.5 billion.