On Tuesday, TechCrunch reported that the SpaceX AI business outperformed investor expectations in the third quarter of the year. CEO Elon Musk’s conglomerate posted $14.6 billion in total revenue, driven heavily by a shift away from traditional space operations toward machine intelligence projects.
Key takeaways
- SpaceX reported $14.6 billion in third-quarter revenue according to its regulatory filing.
- The renamed Super Intelligence segment brought in $7.5 billion.
- Net income reached $4.4 billion, marking a turnaround from a loss last year.
- CFO Bret Johnsen expects capital expenditures of $35 billion to $40 billion in the fourth quarter.
How is the SpaceX ai business performing?
TechCrunch reports that the company's Super Intelligence division generated $7.5 billion in revenue during the third quarter. This income came from the Cursor coding tool, the Grok bot, and a neocloud business featuring 1.7 GW of compute. The division earned $431 million in profit, which would have been higher without $1.2 billion in stock-based compensation expenses tied to the Cursor acquisition.
Total capital expenditures reached $19.6 billion as the company funds the Colossus II data center project and heavy-lift Starship rocket development. Despite those costs, the revenue boost pushed SpaceX to a net income of $4.4 billion, recovering from a $1 billion loss during the same period last year.
Elon Musk shares plans for Super Intelligence and rocketry
Musk spent four days a week in Memphis, Tennessee, working to bring the Colossus II data center online. He argued that the main bottleneck for deployment is power and cooling infrastructure rather than chips. To bypass supply delays, SpaceX is using its own metal casting capabilities to manufacture turbine components.
Meanwhile, the upcoming Starship test flight in November will attempt to catch both the first-stage booster and the second stage. Musk also noted that Starlink subscriber counts climbed to 13.6 million consumers, with future demand expected to rise alongside the growth of autonomous agents.
What happens next?
Investors and analysts are watching financial forecasts closely as the firm expands its computing infrastructure. CFO Bret Johnsen projected total revenue for the first quarter of 2027 between $33 billion and $37 billion. Musk offered an even bolder prediction, stating that annual recurring revenue for the Super Intelligence segment could reach between $500 billion and $1 trillion by the end of 2027.
Frequently asked questions
TechCrunch reports that SpaceX brought in $14.6 billion in revenue during the third quarter of the year, according to a regulatory filing released on Tuesday.
The renamed Super Intelligence business line generated $7.5 billion in revenue, driven by the Cursor coding tool, the Grok bot, and a neocloud business boasting 1.7 GW of compute.
SpaceX reported a net income of $4.4 billion for the third quarter, turning around a $1 billion loss from the same period last year.
The Colossus II data center project is located in Memphis, Tennessee, where CEO Elon Musk spent four days a week working to bring the facility online.
The Starlink space internet network reached 13.6 million consumers, with further subscriber growth anticipated as autonomous agents increase the demand for connectivity.
Based on reporting by TechCrunch. Read the original article
