SpaceX Revenue Soars 161% as AI and Starlink Drive Return to Profit

SpaceX grew revenue by 161% in the three months ending in September compared with the same period a year earlier, according to an earnings release issued Tuesday.

The surge was driven in large part by expansion of the company’s businesses centered on artificial intelligence and Starlink, its satellite internet service. SpaceX said it earned an overall profit of $4.40 billion in the most recent quarter, reversing a loss of $1.05 billion in the same period a year earlier.

Shares rose nearly 4% in after-hours trading following the earnings release, putting the price at about $153.30. The company, led by founder and CEO Elon Musk, has a valuation of nearly $1.95 trillion.

Tuesday’s disclosure was SpaceX’s second-ever quarterly earnings release since it went public in June. In its first release in August, SpaceX reported $7.8 billion in revenue for the three months ending in June, up from $4 billion a year earlier, but revenue failed to keep up with costs.

The connectivity segment, which includes Starlink, generated $5.2 billion in revenue in the most recent quarter, a 69% increase from the same quarter a year earlier. Starlink has been the main driver of company profits. Earlier this month, Starlink acquired nationwide low-band spectrum, signaling it may compete with U.S. mobile carriers, according to Paul Golding, senior digital infrastructure and payments analyst at Macquarie.

“We’ll be listening for launch timing, terrestrial build plans and appetite for more spectrum,” Golding said.

SpaceX has spent significantly on AI infrastructure such as data centers. Last quarter, the AI unit recorded an operating loss of $1.26 billion, partly because AI spending more than doubled from the previous quarter. In the three months ending in September, however, the AI unit turned positive, registering $431 million in income from operations.

The earnings release came a day after Musk vowed to give every child in the United States a share of SpaceX stock. “Next year, I will give one of my SpaceX shares to every kid in America. This will be the first of many,” Musk said in a post on X.

Using the latest U.S. Census estimate of about 73 million people under age 18 and the share price of about $150 on the day of the announcement, the giveaway would total nearly $11 billion. As of Tuesday afternoon, the share price had fallen slightly to about $148. Musk’s net worth stands at $927.4 billion, so the donation would amount to about 1.1% of his wealth.

The pledge came amid scrutiny from policymakers, investors and the public about the potential impact of AI on the labor market and the wider economy. While AI spending has helped boost the U.S. economy, some economists have warned it may increase inflation and harm job prospects for some workers.

Reporting by ABC News. Read the original report: SpaceX revenue soars 161% as AI business grows.