SpaceX revenue climbs 161% as AI unit overtakes Starlink

SpaceX reported third-quarter revenue of US$14.6 billion, an increase of 161%, with its artificial intelligence operations generating more revenue than its mainly Starlink connectivity business. Quarterly results showed net income of US$4.4 billion, reversing a year-earlier loss of US$1.1 billion.

The earnings figures exceeded analyst estimates of US$12.72 billion in revenue and US$1.57 billion in profit, according to LSEG data cited by Reuters. Reuters reported a 2.5% rise in SpaceX shares during extended trading on October 20.

Super Intelligence, the company's AI unit, generated US$7.56 billion, exceeding nine times its year-earlier revenue. Renting data center computing capacity to other companies accounts for most of that business. Reuters identified Anthropic, Google and Reflection AI as customers. The unit also houses Grok, X and Cursor, which SpaceX acquired during the quarter.

Connectivity revenue increased 69% to US$5.25 billion. Starlink's consumer subscriber count reached 13.6 million at September's end, compared with 7.2 million a year earlier. But average monthly revenue per subscriber declined to US$69 from US$99 in 2023 as cheaper plans and expansion into poorer markets weighed on the figure, Reuters reported.

Quarterly investment reached US$19.6 billion, compared with US$6.9 billion a year earlier, including US$16.4 billion directed toward AI and associated data centers. SpaceX told analysts it expects fourth-quarter spending of US$35 billion to US$40 billion as additional capacity becomes available.

The company projected revenue of US$33 billion to US$37 billion for the first quarter of 2027, according to an analyst-call transcript. Its space business, which includes rocket launches, recorded revenue of US$1.77 billion, compared with US$1.67 billion a year earlier.