SpaceX Just Became an AI Company. The Numbers Prove It.
The company's AI segment was once seen as a money pit. It just delivered 830% year-over-year revenue growth.
Space Exploration Technologies (SPCX) recently released a strong financial report for the third quarter, showcasing impressive growth across its business segments. While the overall revenue increased by 161% year-over-year to $14.6 billion, the real standout was the AI business, now called the Super Intelligence (SI) segment. This segment generated $7.6 billion in revenue, marking an astounding 830% increase year-over-year and 195% sequentially.
The SI segment has surpassed other divisions in terms of revenue, now accounting for over half of SpaceX's sales.
Notably, while other segments like connectivity remain profitable, the SI segment has consistently been the most profitable, with an operating income of $431 million. Just a quarter ago, the SI segment was operating at a loss of $1.26 billion, but it has since turned profitable.
The SI segment's substantial investments in compute infrastructure, Cursor acquisition, and AI model training are finally yielding results. The company has forged cloud services agreements with AI industry giants like Alphabet and Anthropic. During the six-and-a-half-week period from August 14 (when Cursor was acquired) to the quarter's end, Cursor contributed $608 million in revenue.
Although SpaceX has been involved in launch and connectivity businesses for a longer period, the numbers highlight the company's growing presence in the AI space. Even with a valuation that may appear rich, the rapid expansion of the SI segment offers a promising outlook for SpaceX's future.
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