SpaceX revenue doubles with Starlink and AI compute deals
What's the story
SpaceX has announced a whopping 92% jump in revenue for the second quarter, its first earnings report since going public. The company reported $7.8 billion in revenue for the period, up from $4 billion in Q2 2025. The growth was largely driven by the expansion of its Starlink satellite internet service and artificial intelligence (AI) initiatives.
Revenue breakdown
Revenue growth from AI and Starlink
Almost $2 billion of SpaceX's revenue growth came from its AI division, while the Starlink service added another $1.7 billion.
The company also signed compute deals with Anthropic and Google, which contributed to the revenue surge.
However, despite the significant increase in sales, SpaceX reported a net loss of $541 million for the quarter due to heavy investments in infrastructure and future projects.
Market response
Stock performance and potential challenges
Since its record-breaking initial public offering (IPO) in June, SpaceX's stock has fallen 8%.
The decline could be exacerbated by the expiration of SpaceX's post-IPO lock-up period starting Thursday, which could flood the market with shares from insiders and early investors.
Despite these challenges, Starlink and SpaceX's broader connectivity operations remain key to CEO Elon Musk's vision of an AI-first business.
Investment focus
AI business losses and future prospects
SpaceX's AI business, which includes xAI, Grok, and social media platform X, has been its biggest investment.
The company is earning revenue from compute contracts with Anthropic, Google's parent company Alphabet, and Reflection AI. However, a portion of this recurring revenue has not yet been recognized.
Operating losses in the AI business have increased, and SpaceX has warned that the unit will need continued investment before it can consistently turn a profit.
Strategic alliance
SpaceX's focus on satellite network and Starship development
SpaceX has also partnered with NVIDIA to use its chips in the Starmind AI1 orbital compute satellites.
The space segment, which includes commercial launches, government missions, and Starship development, remains a major source of costs and uncertainty for the company.
Despite these challenges, SpaceX continues to focus on its own satellite network while absorbing significant costs related to Starship's development.