Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTKeithen Drury, The Motley FoolSat, August 29, 2026 at 10:20 AM GMT+2 4 min readWhile investors may think of Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) as an artificial intelligence (AI) stock, Space Exploration Technologies (NASDAQ: SPCX) could also be considered one as well. SpaceX has a quickly growing AI business that puts some of the growth rates Alphabet is delivering to shame, and could easily make a case as a better AI stock.But is SpaceX a better buy than Alphabet right now? Let's take a look.Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »Image source: Getty Images.SpaceX's AI business is boomingPrior to going public, SpaceX acquired xAI. xAI makes the Grok large language model and also owns X, formerly known as Twitter. This gives SpaceX exposure to the most important technological trend seen in a long time: AI. Grok is a widely used AI model and is rising in usage, as displayed by its growth rates.During the second quarter last year, xAI generated $818 million in revenue. This Q2, it produced $2.56 billion -- a 213% growth rate. That's a booming business, and outpaces anything that Alphabet produced during Q2.But does that make SpaceX the better AI stock?Alphabet has a different segment of AIAlphabet also develops several large language models to compete against xAI's, but how those are accounted for in Alphabet's financials is not as clear as SpaceX's. So, Alphabet may have a segment growing just as fast that's buried inside one of its other divisions. However, one segment that's front and center is its cloud computing business, Google Cloud.Cloud computing is thriving, as several AI firms would rather rent computing power than build it themselves. Furthermore, the number of applications that utilize AI is rising, and there is a huge need for computing bandwidth. As a result, cloud computing is in huge demand, and Alphabet is benefiting.During Q2, Google Cloud's revenue increased by 82% year over year to $24.8 billion. For reference, SpaceX as a whole generated $7.8 billion in revenue during the same period. So, by itself, Google Cloud is three times larger than SpaceX. SpaceX wasn't profitable in the quarter, and posted a $143 million loss from operations. Google Cloud produced an $8.8 billion operating profit.Google Cloud is a better business by itself than SpaceX, and with Alphabet benefiting from a massive AI buildout going on, its growth rate isn't likely to slow down.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info