SpaceX's Starlink Grows While xAI Faces Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Source: seekingalpha
- Starlink Revenue Growth: According to Sensor Tower, SpaceX's Starlink accounted for 61% of the company's total revenue in 2025, with a 60% year-over-year increase in global monthly active users (MAUs) in Q1 2026, demonstrating strong market demand and solidifying its leadership in the global internet services market.
- xAI Usage Decline: While xAI's Grok reached 49.7 million global MAUs in Q2 2026, it experienced a 5% quarter-over-quarter decline in usage, contrasting sharply with OpenAI's ChatGPT, which saw a 51% increase during the same period, indicating significant competitive pressures and potential user attrition for xAI.
- Surge in Ad Spending: SpaceX's advertising expenditure surged 21-fold year-over-year in Q1 2026 and increased by 800% in Q2, positioning the company among the top 275 U.S. advertisers, reflecting an aggressive marketing strategy aimed at boosting Starlink's market share ahead of its IPO.
- Challenges for Platform X: Despite a 17% year-over-year increase in global downloads for X in Q1 2026, its MAUs have consistently declined over the past 10 quarters, which may hinder future advertising revenue, particularly as spending from major advertisers decreases, highlighting the platform's ongoing struggles with user engagement.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
