In Q3 2026, SpaceX reported revenue of $14.58 billion, up 161% year-over-year, and a net profit of $4.4 billion—its first quarterly profit since going public. Of this total, AI business revenue soared to $7.6 billion, marking an 830% year-over-year surge and representing 52% of overall revenue. For the first time, AI surpassed the communications segment (led by Starlink) to become SpaceX’s largest revenue stream. Computing power leasing emerged as the primary growth driver within the AI sector, while the company is also aggressively expanding into AI application development. To fuel this rapid AI expansion, SpaceX’s quarterly capital expenditures climbed to $19.593 billion, an 185% year-over-year increase. The market has responded enthusiastically to SpaceX’s growth trajectory, with its valuation hitting $2.17 trillion—exceeding the combined market caps of Musk’s other three ventures. Musk projects annualized recurring revenue will reach $500 billion to $1 trillion by late 2027. He also disclosed ongoing discussions about a potential merger with Tesla and outlined plans to further scale computing infrastructure, advance Starship development, and construct new launch facilities. While Starlink remains a key cash generator and the aerospace division continues its steady growth, the computing power surge has introduced significant capital expenditure pressures, positioning SpaceX for substantial future financing needs. The payoff from these investments remains to be seen.