Elon Musk’s space company SpaceX has turned profitable, driven by explosive growth in its artificial intelligence (AI) business. Notably, AI business revenue surged more than ninefold within a year, surpassing satellite internet service Starlink’s revenue for the first time.
According to Reuters and other outlets on October 20 (local time), SpaceX reported third-quarter revenue of $14.58 billion (approximately 20 trillion Korean won) in its earnings announcement. This marks a 161% increase from the same period last year, significantly exceeding Wall Street’s estimate of $12.72 billion. Net profit reached $4.4 billion (approximately 6 trillion Korean won), turning from a $1.1 billion loss in the same period last year. It also surpassed market expectations of $1.57 billion. SpaceX, which went public in June, recorded a quarterly profit immediately after its listing.
The performance was led by the AI business. The “Super Intelligence” division’s third-quarter revenue hit $7.6 billion, a ninefold increase from the same period last year. During the same period, satellite communication business revenue, including Starlink, was $5.25 billion. AI business revenue overtook Starlink for the first time. A significant portion of AI revenue came from leasing data center computing capacity to Anthropic, Google, and ReflectionAI, rather than from its own AI model, Grok.
The Starlink business continues to grow steadily. As of the end of the third quarter, Starlink subscribers reached 13.6 million people, exceeding the market estimate of 12.19 million. However, the average monthly revenue per user decreased from $99 in 2023 to $69 in the third quarter of this year, as the company expanded relatively cheaper pricing plans in overseas markets. While subscriber and total revenue numbers are rising, profitability per user is under pressure.
However, costs from massive AI investments have also increased. SpaceX’s third-quarter capital expenditure reached $19.6 billion, nearly triple the figure from the same period last year. Of this, approximately $16.4 billion was invested in the AI business. About 84% of total investment was poured into building AI infrastructure. While the AI business is driving revenue growth, the company is investing far more funds than it earns to secure data centers and semiconductors to support it.
Recently, the market has again speculated about a potential merger between SpaceX and Tesla. This follows Tesla’s recent demonstration video of the “flying car” Roadster, which applied SpaceX technology, indicating the two companies are expanding collaboration in AI, robotics, and space technology. Bloomberg reported that Tesla and SpaceX each formed special committees to review the possibility of a merger.
Elon Musk, the CEO, stated during the earnings announcement, “SpaceX is at a critical turning point across rocket launches, communications, and superintelligence (AI) businesses. There are significant advantages to merging the two companies.” He added, “If you ask if I think this (merger) is a good idea, the answer is ‘Yes.’ But ultimately, shareholders must support it.”
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