The rocket company has set aside more than $500 million for potential litigation losses, in part to account for complaints alleging Grok created sexualized images.

SpaceX's IPO filing reveals xAI lost $6.4 billion in 2025 while planning a massive Grok expansion — offering the first public look at Elon Musk's AI financials and more details…

SpaceX listed the chance that Grok could generate "potential nonconsensual or exploitative imagery" as a risk factor in its pre-IPO paperwork.

The filing said 117 million use Grok’s AI features monthly but acknowledged the reputational risks posed by the chatbot’s “Spicy” Imagine Mode and “Unhinged” Voice Mode.

The rocket company has set aside more than $500 million for potential litigation losses, in part to account for complaints alleging Grok created sexualized images.

SpaceX took the wraps off its IPO filing Wednesday, laying bare for investors just how much Elon Musk is losing on artificial intelligence while betting the com

SpaceX reserved over $500M for litigation tied to xAI's Grok chatbot generating sexualized images, flagging it as a material risk ahead of its planned IPO.

Much of the outlook relies on SpaceX dominating technologies and markets that do not yet exist – from Mars missions to AI data centers in space.

Perhaps the 420th unforced error from Musk in recent years.

IPO filing from Elon Musk’s company reveals look at finances, cosmic ambitions and insight into tech empire’s quirks