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SpaceX has reported a significant surge in revenue, driven largely by its AI and Starlink satellite businesses. The company's earnings increased by 161% over the past quarter, reaching $14.6 billion, marking its first profitable quarter since going public. The AI division, now called Super Intelligence (SI), saw its revenue soar by 830% to $7.6 billion, surpassing the Starlink-led connectivity business, which generated $5.2 billion, as reported by New York Post.
The company's net profit for the quarter was approximately $4.4 billion, a significant turnaround from a $541 million loss in the previous quarter. SpaceX's stock rose 4% in after-hours trading, reflecting investor confidence in its growth trajectory. The Motley Fool noted that SpaceX's Connectivity division, which was previously its only profitable segment, saw a 99% increase in profit year-over-year to $2.4 billion.
SpaceX's CEO, Elon Musk, highlighted the rapid growth of the AI division, which includes the Grok chatbot and a cloud-computing operation. He emphasized the company's ability to expand its AI infrastructure, likening it to "the New York Yankees playing in Little League." Musk also mentioned ongoing discussions about a potential merger between SpaceX and Tesla, with special committees formed to explore the possibility, as reported by Yahoo Finance.
Despite the impressive earnings, SpaceX's capital expenditures remain high, with $19.6 billion spent in the third quarter, including $16.4 billion on AI infrastructure. Musk stated that the constraint on deploying superintelligence is more related to power, cooling, and infrastructure than chips. Looking ahead, SpaceX plans to continue expanding its Starlink satellite network and aims to increase its launch frequency in the coming year.