SpaceX revenue rockets while AI spending burns billions

SpaceX recently released its first-quarter revenue figures as a publicly traded company, only to disappoint investors with surging AI expenditures and another loss for the period. Revenue skyrocketed to $7.8 billion, up from $4.7 billion in the previous quarter. However, capital expenditure surged from $10.1 billion to $18.4 billion, with AI infrastructure alone accounting for $15.8 billion.

The only profitable segment remained Starlink, which saw a decrease in losses from $2.5 billion to $1.3 billion. Elon Musk, SpaceX's CEO, maintained his bullish optimism, stating that Starlink could potentially provide internet service for most of the world, while the Chief Operating Officer, Gwynne Shotwell, tempered the claims, expecting Starlink to account for a significant portion of internet traffic.

The company's lunar ambitions, led by Musk, aim to have astronauts on the Moon by 2028. Musk also revealed plans to deploy Starlink satellites during the next Starship flight and the possibility of capturing the returning Starship upper stage. Despite these ambitious plans, SpaceX's shares plummeted by around 10 percent in pre-market trading, trading at $110.95, well below their IPO price of $135 and half their peak of $225.64.