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Capability
SpaceX’s AI business is beating expectations
SpaceX hit profitability in the third quarter, with net income of $4.4 billion. AI was the engine.
SpaceX’s data centers and Grok agents were more profitable than investors expected in the third quarter of the year, as the company leaves its roots as a space company behind to focus on artificial intelligence, which now makes up 52% of its income.
CEO Elon Musk’s deep tech conglomerate reported $14.6 billion in third-quarter revenue on Tuesday, according to its regulatory filing .
That number was driven by growth in all segments, but especially its renamed “Super Intelligence” business line, which generated $7.5 billion in revenue from the recently acquired Cursor coding tool, Grok bot, and most importantly, the company’s burgeoning neocloud business, which now boasts 1.7 GW of compute. The AI business generated $431 million in profit, which would have been higher without $1.2 billion in one-time stock-based compensation expenses related to the Cursor acquisition.
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