by Coinstrooper Crypto Articles
Quick Take
  • SpaceX has cut most of the team behind Grok Imagine, its tool that makes AI videos and images.
  • About 60 people lost their jobs in the past week, The Information reported.
  • AI made $7.6 billion of SpaceX’s $14.6 billion in revenue last quarter, up 830% in a year.
  • The Motley Fool credits deals renting computing power to AI developers such as Anthropic and Alphabet, plus rising Grok use.

What Happened

SpaceX has cut most of the team behind Grok Imagine, its tool that makes AI videos and images. Yet its AI business is booming.

About 60 people lost their jobs in the past week, The Information reported. Only a handful remain. SpaceX has not commented.

AI made $7.6 billion of SpaceX’s $14.6 billion in revenue last quarter, up 830% in a year. The Motley Fool credits deals renting computing power to AI developers such as Anthropic and Alphabet, plus rising Grok use.

Market Context

In August, SpaceX President Gwynne Shotwell said the company was “rapidly expanding our compute capacity to meet our own needs as Grok expands.” Three months later, Grok’s video team is mostly gone.

Grok ranked fifth of seven major AI assistants by web visits in May, a Momentic Marketing report found. In July video rankings, where viewers voted blind, Chinese companies took the top six spots, led by ByteDance’s Seedance 2.0, Capital and Compute found.

SpaceX stock (SPCX) stock fell 0.56% to $139.15 in early trading on Friday after the report. Shares jumped toward $142 at the opening bell, then reversed below Thursday’s close of $139.94.

Why It Matters

In August, Musk said he expects “maybe 10%” of the company’s computing power to go to training Grok.

Details

In the second quarter, AI solutions and infrastructure made $2.19 billion of the AI unit’s $2.56 billion. Advertising made $367 million. SpaceX has signed $14.1 billion in cloud deals.

Anthropic, one of those paying customers, makes Claude. This week, Musk said his Grok 4.8 is “not as good” as Claude Opus 5.5. “Opus 5.5 is a masterpiece,” he added, BeInCrypto reported.

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