SpaceX revenue rockets while AI spending burns billions

SpaceX delivered its first quarterly results as a public entity, surpassing revenue expectations but failing to impress investors due to soaring AI expenditure and an additional loss. In a separate space development, a discarded SpaceX rocket body reportedly impacted the Moon. Revenue for the quarter ending June 30 rose to $7.8 billion, up from $4.7 billion in the previous quarter.

AI revenue surged from $818 million to $2.6 billion, while capital expenditure surged from $10.1 billion to $18.4 billion, with AI infrastructure accounting for $15.8 billion. Despite the impressive revenue growth, connectivity, the only profitable segment, continued to report losses. CEO Elon Musk conveyed a bullish outlook, suggesting Starlink could supply the majority of global internet access.

However, COO Gwynne Shotwell tempered expectations, stating Starlink would represent a "significant portion" of internet traffic. Musk also announced the next Starship flight would deploy Starlink satellites and speculated about capturing the returning Starship upper stage. Despite the company's bold ambitions, SpaceX shares plummeted 10 percent following the results, trading at $110.95 in pre-market trading, far below its $135 IPO price and half its $225.64 peak.