SpaceX reports 161% revenue jump as AI business and Starlink expand
The company reported $14.58 billion in third-quarter revenue and $4.4 billion in net profit. Its AI segment drove much of the growth, though the reports give differing pictures of its profitability.
SpaceX reported third-quarter revenue of $14.58 billion, up 161% from a year earlier, as its AI business and Starlink satellite-internet service grew, Reuters reported on October 20. The results for the three months ended September 30 put revenue above the $12.72 billion analyst estimate compiled by LSEG and showed how much of the company’s growth now comes from businesses beyond rocket launches.
Net profit was $4.4 billion, compared with an analyst expectation of $1.57 billion, according to Reuters. In the second quarter, SpaceX reported a $541 million net loss on revenue of $7.81 billion. The latest results mark a substantial change from that preceding quarter as well as from a year earlier.
How AI and Starlink contributed
SpaceX’s Super Intelligence segment generated $7.6 billion in third-quarter revenue, an 830% increase from a year earlier, The Verge reported. According to the outlet, SpaceX attributed that growth primarily to new cloud-services agreements, its acquisition of AI coding tool Cursor and greater use of Grok by enterprise customers and consumers. The company reported $431 million in operating income for the segment, The Verge said.
Reuters reported that SpaceX makes much of its AI revenue by renting data-center capacity to developers including Anthropic, Google and Reflection AI. It also described large operating losses at the AI unit and said SpaceX had warned that sustained investment would be needed before the business could consistently generate profits. Reuters’ description of the AI unit and The Verge’s figure for the named Super Intelligence segment use potentially different boundaries or accounting measures; the reports do not reconcile them.
The Connectivity segment, which includes Starlink, generated $5.2 billion in revenue and $2.4 billion in operating income, The Verge reported. It said SpaceX counted 13.6 million Starlink consumer subscribers. Reuters said the service has expanded its subscriber base across consumer, enterprise, aviation, maritime and government markets, giving SpaceX several ways to sell satellite connectivity.
Space launches and the broader business
Space operations generated $1.8 billion in revenue, up 6% from a year earlier, while recording a $7 million operating loss, according to The Verge. That contrasts with the operating income reported for Connectivity and Super Intelligence. Reuters said the space business includes commercial launches, government missions and Starship development, which remain significant sources of cost and uncertainty.
The Verge described these as SpaceX’s second quarterly results since its June initial public offering. The figures give investors a fuller view of a company whose reported revenue now spans satellite internet, AI services and launch operations, with markedly different results across those segments.
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Sources and context
- SpaceX quarterly revenue jumps, beats estimates as AI business surgesChannel NewsAsia (Reuters)
- SpaceX says big AI growth fueled revenue jumpThe Verge
AI-assisted article checked against the listed sources. NewsJaws did not conduct interviews or attend the reported events.