SpaceX revenue soars 161% as AI business grows

SpaceX, the aerospace company led by Elon Musk, reported a staggering 161% increase in revenue over the three months ending in September compared to the same period a year earlier, according to its second quarterly earnings report. The substantial revenue growth was primarily driven by the expansion of its artificial intelligence (AI) businesses and its Starlink satellite internet service.

SpaceX reported a profit of $4.40 billion in its latest quarter, marking a turnaround from a loss of $1.05 billion in the previous quarter. This profitability turnaround follows a loss in the previous quarter, making this the company's second-ever quarterly earnings release since going public in June.

The revenue jump was highlighted by SpaceX's $5.2 billion in income from its connectivity segment, which includes the Starlink service, representing a 69% increase from the same quarter a year earlier. Shares of SpaceX surged nearly 4% in after-hours trading following the earnings release, pushing the share price to approximately $153.30.

The company, valued at nearly $1.95 trillion, has a strong presence in the aerospace industry, with a focus on building and operating spacecraft, including thousands of satellites for its Starlink service, as well as managing xAI, a competitor to AI chatbot platforms like OpenAI's ChatGPT and Anthropic's Claude.

While AI spending has contributed to the U.S. economy's growth in recent quarters, Elon Musk's pledge to give every child in the United States a share of SpaceX stock drew attention amid ongoing debates about the potential impact of AI on the labor market and economy. Musk's announcement, which would total nearly $11 billion, came amid scrutiny from policymakers, investors, and the public about the implications of AI technology.

Analysts have differing opinions on the likelihood of significant adverse consequences from AI, with some warning of potential risks.