SpaceX Revenue Nearly Doubles to $7.8 Bn in Debut Earnings as Starlink, AI Businesses Surge

SpaceX nearly doubled its revenue in the quarter ended June 30, driven by strong growth in its Starlink satellite internet business and artificial intelligence (AI) operations, according to the company's latest earnings report.

The Elon Musk-led company reported revenue of $7.8 billion for the April-June quarter, up from $4.1 billion a year earlier.

SpaceX also said it expects to achieve a $100-billion annualised revenue run rate by December. The company plans to launch at least 1,000 next-generation V3 Starlink satellites over the next year as it expands its satellite network and connectivity services.

Starlink Continues to Drive Growth

Starlink remained SpaceX's biggest revenue contributor during the quarter, accounting for more than half of the company's total revenue.

Revenue from the satellite internet business increased 66% year-on-year (YoY), while the number of Starlink subscribers doubled to 12 million by the end of the quarter. However, average revenue per subscriber declined as the company expanded into more international markets and introduced lower-priced plans.

SpaceX President Gwynne Shotwell said the company plans to expand its connectivity offerings further by combining satellite and ground-based infrastructure to build a broader mobile service.

AI Investments Gather Pace

SpaceX's AI business recorded the fastest growth during the quarter, with revenue rising around 250% from a year earlier, according to the company's earnings report.

The company significantly increased its investment in AI infrastructure. Capital expenditure rose to more than $18 billion during the quarter from $2.83 billion a year ago, with AI-related spending accounting for the bulk of the increase.

On a post-earnings call, Elon Musk said SpaceX expects to build more than two gigawatts of computing capacity this year and expand it to nearly 10 gigawatts by the end of next year. He also said the company plans to use Nvidia hardware exclusively to build its AI data centres.

Operating Performance Improves

SpaceX said its total operating loss narrowed to $143 million during the quarter from $970 million a year earlier.

The company said operating income at Starlink increased 79%, while losses in its AI business also narrowed during the period.

Meanwhile, revenue from SpaceX's space business, which includes commercial launches, government missions and Starship development, grew 29% YoY, although the company continues to invest heavily in developing its next-generation launch system.