SpaceX AI revenue tops Starlink as Q3 profit hits $4.4B
Artificial intelligence units drove a 161% surge in quarterly revenue, marking the first time AI earnings exceeded connectivity sales.
Key points
- Total third-quarter revenue reached $14.6 billion, up 161% year-over-year.
- The Super Intelligence unit generated $7.56 billion, surpassing Starlink’s $5.25 billion.
- Net profit swung to $4.4 billion from a $1.1 billion loss in the prior year.
SpaceX reported a net profit of $4.4 billion for the third quarter, reversing a $1.1 billion loss recorded during the same period last year. The aerospace and technology firm posted total revenue of $14.6 billion, representing a 161% increase year-over-year, according to its quarterly results published on October 20.
Both the revenue and profit figures exceeded Wall Street forecasts, which had anticipated $12.72 billion in sales and $1.57 billion in profit, based on LSEG data cited by Reuters. Following the release of these second quarterly results since its public listing, shares rose 2.5% in extended trading on October 20.
AI Dominance and Capital Expenditure
The company’s artificial intelligence division, now branded as Super Intelligence, generated $7.56 billion in revenue, more than nine times the amount earned a year earlier. Most of this income stems from renting data center computing power to other firms. Reuters identified Anthropic, Google, and Reflection AI as customers utilizing these resources.
Beyond infrastructure rental, the AI unit encompasses the Grok chatbot, the X social network, and the coding tool Cursor, which SpaceX acquired during the quarter. This segment’s performance allowed AI earnings to overtake those from the Starlink satellite internet service for the first time.
As Threat Times reported on October 20, capital expenditure for the aerospace firm jumped nearly threefold in the third quarter, driven by data center build-outs and AI development. SpaceX invested $19.6 billion in the quarter, with $16.4 billion allocated specifically to AI and its data centers.
Connectivity and Launch Operations
Starlink revenue grew 69% to $5.25 billion, ending September with 13.6 million consumer subscribers, up from 7.2 million a year earlier. However, average monthly revenue per subscriber fell to $69 from $99 in 2023. Reuters attributed this decline to the introduction of cheaper plans and expansion into lower-income markets.
The traditional space business, covering rocket launches, grew more slowly, reaching $1.77 billion from $1.67 billion in the prior year. Starship, the next-generation rocket, has not yet carried paying customers. Its first orbital test flight last month released several Starlink satellites but was cut short by several hours due to an engine fault.
Spending is projected to accelerate further. On a call with analysts, the company indicated it expects to spend between $35 billion and $40 billion in the fourth quarter as additional capacity comes online. Chief Financial Officer Brad Coffman stated that new computing capacity pays for itself in less than a year at current prices.
Elon Musk, the chief executive, described the period as an inflection moment for SpaceX across launch, connectivity, and superintelligence. The company forecasts revenue of $33 billion to $37 billion for the first quarter of 2027. Investors are also awaiting news on a possible merger with Tesla, which reports its own results on Wednesday.
What should you do?
Monitor official filings for updates on Tesla merger speculation and future Starship launch schedules. Track quarterly earnings reports to assess the sustainability of high capital expenditure levels relative to AI infrastructure growth. Watch for changes in Starlink pricing strategies as the service expands into new global markets. Review regulatory filings for details on data center compliance and customer data handling practices.
What to do and how to stay safe: SpaceX
- Review public quarterly filings to verify capital expenditure trends against reported revenue growth.
- Monitor official press releases for updates on Starship test flights and commercial payload status.
- Track regulatory announcements regarding data center operations and international connectivity services.
- Observe market reactions to Tesla earnings reports for potential merger-related volatility.
Step-by-step guide: Prompt Injection Warning Signs: How to Spot AI Manipulation
General security guidance from the Threat Times newsroom. It is not confirmed advice from the organisations named in this story.
Frequently asked questions
Did SpaceX make more money from AI or Starlink in Q3?
SpaceX generated $7.56 billion from its AI unit, surpassing Starlink’s $5.25 billion in revenue for the third quarter.
What was SpaceX’s net profit in the third quarter?
The company reported a net profit of $4.4 billion, compared to a $1.1 billion loss in the same period last year.
How much did SpaceX spend on capital expenditure in Q3?
Capital expenditure reached $19.6 billion, with $16.4 billion specifically directed toward AI and data center development.
