SpaceX's AI business is beating expectations

SpaceX’s data centers and Grok agents have surpassed investor expectations in the second quarter of the year, as the company shifts focus from its space roots to artificial intelligence, which now constitutes 52% of its income. Elon Musk’s deep tech conglomerate reported $14.6 billion in third-quarter revenue, according to its regulatory filing.

This impressive figure was driven by growth across all segments, particularly in its renamed “Super Intelligence” business line. This includes the recently-acquired Cursor coding tool, Grok bot, and the rapidly expanding neocloud business, which now boasts 1.7 GW of compute capacity. Additionally, the top-line revenue was bolstered by approximately $1 billion related to the recovery of bitcoin prices and unspecified income potentially linked to a SpaceX investment in another company.

Despite the growing revenue, SpaceX is balancing total capital expenditures of $19.6 billion. The company continues to develop its second data center project, Colossus II, and increase investments in Starship, the heavy-lift rocket deemed essential for deploying a new generation of Starlink satellites and developing orbital data centers.