SpaceX nearly doubled its revenue in the second quarter as rapid growth in its Starlink satellite internet business and new artificial intelligence computing deals transformed the company’s earnings profile in its first quarterly report since going public.
The company reported revenue of $7.8 billion, up 92% from a year earlier, driven by expanding Starlink subscriptions and lucrative agreements to provide AI computing capacity to Anthropic and Google.
The AI business emerged as one of SpaceX’s fastest-growing divisions. Revenue from compute services tripled to about $2.6 billion after the company began renting excess graphics processing unit (GPU) capacity to AI developers instead of using it solely for internal operations. The strategy has positioned SpaceX as an emerging competitor to specialist AI cloud providers such as CoreWeave.
Starlink remained the company’s biggest revenue generator. Sales from the satellite internet business rose 66% to more than $4.2 billion as the subscriber base doubled to 12 million, supported by continued international expansion and stronger demand from enterprise and government customers.
Despite the strong revenue growth, SpaceX remained unprofitable as it continued to invest aggressively in AI infrastructure and next-generation satellite technology. Capital expenditure climbed to about $18 billion during the quarter, with most of the spending directed toward expanding data centre capacity and AI computing infrastructure. The company posted a net loss of $541 million, an improvement from the roughly $1 billion loss recorded a year earlier.
Chief Executive Elon Musk said the company is on track to achieve an annualised revenue run rate of $100 billion by the end of the year. SpaceX also plans to deploy at least 1,000 next-generation Starlink V3 satellites over the next 12 months to increase network capacity and improve global coverage.
The results highlighted a significant shift in SpaceX’s business model. Once known primarily for rocket launches, the company now generates more revenue from satellite connectivity and AI infrastructure than from its traditional space operations. The space division contributed less than $1 billion in quarterly revenue, reflecting the growing importance of its newer businesses.
Investors nevertheless reacted cautiously to the results. SpaceX shares fell in after-hours trading as the company’s heavy AI spending overshadowed the strong revenue growth, raising questions about how quickly those investments will translate into sustained profitability.
Stay ahead of the Stories shaping our world. Subscribe to Impact Newswire and join our
WhatsApp Channel for updates on global tech, business, and innovation—all in one place.
Dive deeper into the future with the Cause Effect 4.0 Podcast, where we explore the ideas, trends, and technologies driving the global AI conversation.
Got a story to share? Contact Us to reach a global audience with Impact Newswire.
Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
Discover more from Impact Newswire
Subscribe to get the latest posts sent to your email.
