Musk’s SpaceX turns profit as AI cloud deals pay off

Elon Musk’s SpaceX has reported its first quarterly profit, posting a net income of $4.4 billion according to Punch Nigeria and Punch. Fortune reports the third quarter net income was $4.4 million, or 35 cents a share, marking a reversal from a net loss of $541 million in the second quarter and a $5.5 billion loss a year ago.

Third quarter revenue rose 161% year-over-year to $14.6 billion, exceeding the $12.86 billion expected by analysts, Fortune reports. This growth was supported by the company's AI segment, renamed “Super Intelligence,” which generated $7.56 billion in revenue. This segment includes computing capacity leased to X, Grok, Google, and Claude-maker Anthropic.

Connectivity revenue, primarily from Starlink, rose 69% to $5.25 billion, while overall Space revenues increased 6% to $1.77 billion, according to Fortune. During the quarter, Starlink added 1.6 million consumer subscribers, a figure that fell below the 2.29 million predicted by analysts. Operating income for the company rose to $2.79 billion.

Brief written by urgent.news from Punch Nigeria, Punch, Fortune — 3 reports on this story. Machine-written — may contain errors; check the original before relying on it.