SpaceX has more neocloud revenue
SpaceX's AI revenue grew more than three times to $2.6 billion from the year before, mostly because of deals that the company made to provide compute to other AI companies, according to SpaceX's quarterly earnings. The AI division, which the company said in its documents to go public was the source of most of its value, lost $1.5 billion this quarter, slightly less than in the same quarter last year. SpaceX made deals with Anthropic in May and Google in June to provide compute
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SpaceX's artificial intelligence division saw revenue grow more than threefold to $2.6 billion, driven by deals to provide computing power to other AI companies, putting it in competition with similar services. Despite the revenue increase, the AI division lost $1.5 billion this quarter, and SpaceX's overall losses narrowed to $143 million as the company invests heavily in expanding both its AI operations and space technology development. The company's connectivity business, Starlink, remains its only profitable division, while Starship development serves as a key driver of spending to support future satellite launches. SpaceX's expansion into AI infrastructure and its grandiose plans for data centers and market growth come with substantial capital expenditures that currently exceed revenue generation.
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