SpaceX is rapidly expanding beyond rockets and satellite internet as artificial intelligence becomes a major driver of its business. Elon Musk’s company reported strong third-quarter 2026 results, with its AI division generating billions in revenue and helping push the aerospace giant back into profitability.
According to TechCrunch, SpaceX reported $14.6 billion in total revenue for the third quarter, while its AI-focused business generated $7.5 billion. The results highlight how data centers, AI agents, and computing infrastructure are becoming increasingly important to the company’s long-term strategy.
SpaceX AI Business Generates $7.5 Billion in Revenue
SpaceX’s newly named “Super Intelligence” business segment generated approximately $7.5 billion in third-quarter revenue and $431 million in profit.
The division includes the Grok chatbot, the Cursor AI coding platform acquired by SpaceX, and its growing cloud computing infrastructure business.
AI accounted for approximately 52% of SpaceX’s income, according to TechCrunch’s report, underscoring the company’s shift toward artificial intelligence alongside its established space and connectivity operations.
However, the segment’s profit would have been higher without $1.2 billion in one-time stock-based compensation expenses associated with the Cursor acquisition.
SpaceX Reports $4.4 Billion in Quarterly Profit
SpaceX’s financial performance improved significantly during the third quarter. The company recorded $4.4 billion in net income, compared with a $1 billion loss during the same period last year.
Revenue growth across its businesses helped drive the turnaround. However, the company still faces substantial costs as it expands its AI infrastructure and develops new space technology.
SpaceX reported $19.6 billion in capital expenditures during the quarter. Chief Financial Officer Bret Johnsen also projected that the company would spend between $35 billion and $40 billion on capital investments in the fourth quarter.
These expenses reflect the enormous cost of building the computing capacity and physical infrastructure required to support advanced AI systems.
AI Data Centers Become a Major Growth Engine
SpaceX is investing heavily in data centers to meet rising demand for AI computing power. One of its major projects, Colossus II, is under development in Memphis, Tennessee.
Musk said he spends four days a week in Memphis working to bring the facility online.
He believes electricity supply, cooling systems, and supporting infrastructure have become major bottlenecks in deploying advanced AI systems. SpaceX is working to address these challenges by applying its engineering and manufacturing expertise to data center operations.
For example, the company is using its metal-casting capabilities to manufacture components for power-generating turbines, potentially reducing delays caused by supply chain constraints.
Starlink and Starship Remain Important to SpaceX
Despite its growing AI business, SpaceX continues to invest in its core space operations.
Its Starlink satellite internet network reached 13.6 million consumer subscribers, according to the report. Musk expects the expansion of AI agents to increase demand for reliable internet connectivity.
Meanwhile, the company is preparing for another Starship test flight, expected in November. SpaceX plans to attempt recovery of both the rocket’s first-stage booster and second stage, a major milestone in its reusable launch system development.
The company also sees Starship as essential to deploying future generations of Starlink satellites and potentially supporting orbital data centers.
Elon Musk Makes an Ambitious AI Revenue Forecast
Musk expressed strong confidence in the future of SpaceX’s AI operations, predicting that the company’s annual recurring revenue could reach between $500 billion and $1 trillion by the end of 2027.
Johnsen offered a more immediate forecast, projecting total SpaceX revenue of $33 billion to $37 billion for the first quarter of 2027.
These projections are ambitious, and SpaceX must continue converting demand for AI computing into sustainable profits while managing its substantial infrastructure spending. The company also recorded a net loss of $413 million across the first nine months of 2026, despite its profitable third quarter.
What SpaceX’s AI Expansion Means for the Tech Industry
SpaceX’s latest results demonstrate how quickly artificial intelligence is reshaping major technology companies. By combining AI software, cloud computing, satellite connectivity, and advanced engineering, the company is positioning itself as more than a traditional aerospace business.
Its growing AI revenue could strengthen its position in the competitive market for computing infrastructure. However, whether Musk’s ambitious financial targets become reality will depend on customer demand, infrastructure expansion, and the company’s ability to control costs.
*Source: [TechCrunch]