On October 21, SpaceX (SPCX.O) reported a substantial surge in third-quarter revenue, fueled by robust growth in its artificial intelligence (AI) and Starlink ventures. The revenue not only surpassed market expectations but also doubled compared to the previous period. Concurrently, capital expenditures nearly tripled, primarily due to significant investments in computing infrastructure. Following the announcement, SpaceX’s stock price climbed approximately 3% in after-hours trading. Nevertheless, SpaceX’s proprietary AI software, including Grok developed under its xAI initiative, currently lags behind competitors such as OpenAI, Anthropic, and Google.

According to the financial report, SpaceX’s third-quarter revenue hit $14.58 billion, outpacing analysts’ projections of $12.72 billion. Net profit soared to $4.4 billion, significantly exceeding the anticipated $1.57 billion. Within this, revenue from the AI business skyrocketed more than ninefold to $7.6 billion, largely attributed to the leasing of computing power. However, out of the $19.6 billion in capital expenditures, the AI sector accounted for a staggering $16.4 billion. SpaceX anticipates that this level of spending will remain stable in the near term.

Furthermore, the number of Starlink subscribers rose to 13.6 million in the third quarter, surpassing the expected 12.19 million. Yet, the average monthly revenue per user declined due to the company’s overseas expansion with more affordable pricing plans. This figure dropped from $99 in 2023 to $69 in the third quarter.