SpaceX released its first earnings report following the firm’s going public back in June. The company’s shares retreated by 9% in the wake of Elon Musk revealing during the earnings call that the firm intends to spend a lot more on AI. Investors were spooked by this revelation.
In the report, SpaceX’s revenue at least doubled during the quarter to reach $7.8 billion compared with its revenue in the same quarter last year. However, its spending skyrocketed to $18.3 billion, a more than 6-fold jump from spending in Q2 of 2025. The bulk of this spending was AI-related.
SpaceX has a division that builds satellites which power the Starlink internet business. It also manufactures space rockets that count the U.S. government among its major clients. SpaceX also owns X, a social media platform that was formerly called Twitter.
The company debuted on the stock exchange back in June this year, and the earnings report released was the first after the public listing of the firm.
In the report, SpaceX reported $143 million as its net loss during the quarter ending in June. Its total loss for the first half of the year was $2 billion. During his address, Musk noted that Starlink had brought in revenue totaling $1.6 billion during the recent quarter and added that this business is poised for exponential growth over the coming years.
He went as far as saying that Starlink could, in future, operate the bulk of global internet. Musk also highlighted that SpaceX was seeing growth in its business of compute power sales to other companies that needed it for AI purposes. Anthropic and Google are among the firms making compute power purchases, he revealed.
Musk said SpaceX currently has approximately 1.4 GW of compute power and planned to expand it to more than 10 GW in 2027 through the setting up of additional data centers. He quipped that setting up data centers was an easier task when compared to making reusable rockets.
On SpaceX’s earning potential, Musk revealed that the firm is likely to hit a trillion dollars in earnings by 2030. Despite this optimism, investors were spooked and the firm’s shares slipped by 9% during Wednesday trading.
Investors are increasingly getting uneasy about the exploding spending on AI by major tech firms, and other players like Meta Platforms Inc. (NASDAQ: META) will need to think of ways to alleviate the concerns of their investors in order to forestall a significant drop in their valuations on fears that AI spend may not return a profit quickly enough.
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