SpaceX may be tackling one of the biggest challenges in the chip business: manufacturing the keys to powering artificial intelligence called graphics processing units, or ‌GPUs. Ahead of SpaceX's $1.75 trillion IPO expected this summer, the company has warned prospective investors of its big spending plans to develop ‌AI and other technologies. It lists "manufacturing our own GPUs" among the "substantial capital expenditures" it is undertaking, according to excerpts of its S-1 registration reviewed by Reuters.

STORY: Tesla has sharply raised its spending plan to more than $25 billion for the year, as CEO Elon Musk pours money into artificial intelligence, robotics and chips.:: FileOn a post-earnings call with analysts Wednesday, the billionaire said the moves were "well justified for a substantially increased future revenue stream."Shares in Tesla fell over 2% following the remarks. That reversed gains of up to 4% seen in extended trade earlier, after the company reported a positive free cash flow in the first quarter.:: TeslaTesla is in the middle of one of the most expensive bets in its history.Musk has pivoted the electric vehicle maker's focus to building AI-powered self-driving cabs and humanoid robots.With the raised spending plan, the company expects cash flow to turn negative again for the rest of 2026.First-quarter profit also topped Wall Street targets, in a sign that the electric vehicle maker was holding the line on costs in a difficult global environment.Tesla delivered fewer vehicles than Wall Street expected, but deliveries were still up about 6% from a year earlier.The firm's core automotive business has come under pressure as competitors introduce newer models, often at lower price points.