SpaceX neocloud revenue triples but losses persist

SpaceX's AI revenue grew by more than three times to $2.6 billion from the previous year, largely due to deals providing compute to other AI companies, according to quarterly earnings. The AI division, which the company said was the source of most of its value in its public offering documents, lost $1.5 billion this quarter, slightly less than the same period last year. SpaceX made deals with Anthropic in May and Google in June to provide compute, competing with other neoclouds like CoreWeave. Increased AI presence drove capital expenditures to $18.37 billion, and Elon Musk claimed on an investor call that the company is building AI compute capacity at scale faster than anyone else. Despite overall losses, the quarter's loss narrowed to $143 million. Musk's ambitious plans include data centers in space, with Starship driving a $389 million increase in space division costs. Starship is crucial for launching heavier Starlink satellites to expand the profitable connectivity business, with 20 satellites launched so far, though full deployment of 60 at once remains uncertain. SpaceX beat analyst estimates but its shares declined after an initial surge.