SpaceX stock fell Tuesday after the company disclosed higher-than-expected spending on its artificial intelligence business, dampening an inaugural quarterly report that broadly surpassed Wall Street forecasts.

Shares of entrepreneur Elon Musk¡¯s rocket, satellite and AI conglomerate tumbled as much as 8.8% in U.S. post-market trading after it said capital spending jumped to about $18.4 billion in the second quarter.

¡°We expect the cadence of AI development to improve dramatically,¡± Musk told analysts on a conference call after the company reported results that beat forecasts for revenue, AI losses and Starlink subscriber growth.