SpaceX revenue surges 161% on AI and Starlink growth

Summarised from 5 outlets · Updated 20 Oct, 22:15 · Archive

SpaceX reported third-quarter revenue of $14.6 billion, beating Wall Street expectations, driven by growth in its artificial intelligence and Starlink divisions.

SpaceX released its second public earnings report on Tuesday, revealing revenue of $14.6 billion for the third quarter, significantly exceeding analyst expectations of $12.7 billion. The company reported net income of $4.4 billion and earnings per share of 35 cents, well above projections. Shares rose approximately 2 to 3 per cent in after-hours trading.

The 161 per cent year-over-year revenue growth was driven primarily by two segments. The Super Intelligence business generated $7.6 billion in revenue, an 830 per cent increase year-over-year. This business encompasses SpaceX's data-centre operations, the recently acquired Cursor coding tool, and Grok, the AI chatbot. Rather than developing AI models directly, SpaceX primarily generates revenue by leasing data-centre capacity to outside developers including Anthropic, Google, and Reflection AI, operating as a cloud infrastructure provider.

The Connectivity division, which includes Starlink satellite internet, reported $5.2 billion in revenue with 13.6 million consumer subscribers. The Space business, encompassing SpaceX's core rocket launches, generated $1.8 billion in revenue, representing 6 per cent growth year-over-year. However, the Space division posted a $7 million operating loss, whilst Connectivity achieved $2.4 billion in operating income and Super Intelligence generated $431 million in operating profit.

The AI business benefited from the activation of new cloud services agreements and increased adoption of Grok across enterprise customers and consumers. According to TechCrunch, the AI segment now accounts for 52 per cent of SpaceX's income. Operating losses at the AI unit have been large, and the company has cautioned it will require sustained investment before generating consistent profits. One-time stock-based compensation expenses related to the Cursor acquisition amounted to $1.2 billion.

Capital expenditures reached $19.6 billion in the third quarter, substantially higher than Wall Street expected. AI infrastructure accounted for $16.4 billion of this spending, reflecting SpaceX's heavy investment in building out data-centre capacity. TechCrunch reports the company is constructing a second data-centre project called Colossus II. CFO Bret Johnsen stated that SpaceX would spend $35 billion to $40 billion on new capital investments in the fourth quarter.

According to TechCrunch, the top-line revenue figure was also boosted by approximately $1 billion in income related to the recovery of bitcoin prices and unspecified related-party income that might be attributed to a SpaceX investment in another company.

SpaceX's strong financial performance comes during a period of geopolitical scrutiny. According to The Guardian, Ukraine's president Volodymyr Zelenskyy last week accused SpaceX of restricting access to its military-grade Starlink service, alleging that disruption led to failed combat missions. Musk denied responsibility, stating that StarShield is controlled by the US government, not SpaceX. The White House has likewise denied restricting the service.

How it is being reported

• SpaceX quarterly revenue beats estimates as AI and Starlink growInvestors will also be keen to hear Elon Musk's comments on a much-talked-about potential merger between SpaceX and Tesla, which reports results WednesdayIndependent Tech · 20 Oct, 21:53
• SpaceX’s revenue jumps in second-ever earnings report amid Starlink turmoilElon Musk’s company reports a 161% growth in revenue year over year driven by its Starlink and AI segments SpaceX released its second-ever public earnings report on Tuesday, revealing a far better quarter than Wall Street projected. Elon Musk’s company, which encompasses rockets, artificial intelligence and satellite communications, reported a 161% growth in revenue year over year, driven by its Starlink and AI segments. The company declared $14.58bn in revenue against analysts’ projected $12.72bn. SpaceX reported earnings per share of 35 cents and a net income of $4.4bn. The company’s…The Guardian · 20 Oct, 21:51
• SpaceX’s AI business is beating expectationsSpaceX’s data centers and Grok agents have been more profitable than investors expected in second quarter of the year, as the company leaves its roots as a space company behind to focus on artificial intelligence, which now makes up 52% of its income. Elon Musk’s deep conglomerate reported on Tuesday $14.6 billion in third-quarter revenue, […]TechCrunch · 20 Oct, 21:40
• SpaceX says big AI growth fueled revenue jumpSpaceX announced revenues of $14.6 billion in its Q3 earnings on Tuesday, which it says was a growth of 161 percent year-over-year "fueled by our Super Intelligence (SI) segment and accelerated growth in Connectivity." While its Space division posted a $7 million loss in income from operations, its Connectivity group posted income from operations $2.4 […]The Verge · 20 Oct, 21:26
• SpaceX’s data centre deals boost revenue by 161%Elon Musk’s conglomerate spent more than $19bn on capital investments, more than Wall Street expectedFinancial Times · 20 Oct, 21:12

In this story: SpaceX · Elon Musk · Starlink · Cursor · Grok · Anthropic · Google · Ukraine

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