Elon Musk Projects $1T in SpaceX Revenue After Spending $16B on A.I. in 3 Months

After its historic IPO in June, Elon Musk’s SpaceX yesterday (Aug. 4) reported its first earnings as a public company. Revenue for the quarter ended June 30 came to $7.8 billion, up 92 percent year over year and ahead of estimates. Meanwhile, the net loss narrowed to $541 million from about $1 billion a year earlier, also better than expected. However, SpaceX shares fell about 8 percent in after-hours trading as investors worried about the company’s heavy spending on A.I. infrastructure.

During the quarter, SpaceX spent $18.4 billion on capital expenditures (CapEx), exceeding Wall Street’s expectations of roughly $13–14 billion. The majority of the spend—$15.8 billion—was tied to SpaceX’s A.I. operations, largely through its xAI unit, as it built out data centers. Last year, SpaceX disclosed about $21 billion in CapEx, driven by A.I. investments.

SpaceX has three main business segments: Space, Connectivity and A.I.

• Space, which consists mainly of its launch business, generated $962 million in revenue during the April–June quarter.
• Connectivity, its only profitable segment and home to Starlink, generated $4.29 billion in revenue, helped by subscriber growth to 12 million at quarter end.
• A.I., which includes xAI compute, cloud services and related offerings, generated $2.56 billion in revenue.

During the earnings call, CFO Bret Johnsen said the company was on track to reach a $100 billion annualized revenue run rate (ARR) by the end of 2026, citing strong early third-quarter results so far and the expected contribution from Cursor, the A.I. coding startup SpaceX agreed to acquire in June for $60 billion (the deal is expected to close in Q3 2026, pending approvals). Elon Musk added that “the $100 billion ARR in December is not a question mark. That’s what we’d achieve if we basically did nothing.” Some analysts warn that if spending remains at similar levels in Q3 and Q4, full-year CapEx could approach $65 billion.

Musk also said on the call that people were “underestimating” Starlink. “It’s not out of the question that at some point, Starlink will deliver a majority of the world’s internet, at least in countries where we’re allowed to operate,” he said, suggesting that A.I., humanoid robotics and vehicle robotics will increase demand for bandwidth. He also shared internal projections that the company could reach $1 trillion in revenue by 2030.

Before the earnings release, SpaceX shares were down nearly 30 percent from their June debut, underperforming the S&P 500, partly due to concerns about overexpansion in A.I. and data centers, and worries that A.I. infrastructure investments may not generate returns commensurate with the cash deployed.

The company has also moved into hyperscaler-like territory, selling compute to third parties and operating large facilities such as the Colossus and Colossus 2 data centers. SpaceX has secured major contracts with Anthropic and Google: Anthropic agreed to pay $1.25 billion per month for compute capacity (announced in late May, with terms through 2029), and Google entered a $920 million–per–month commitment running from October 2026 through June 2029.

SpaceX also has several wild-card initiatives in the pipeline, including Starmind, an A.I. satellite megaconstellation aimed at orbital compute, and Terafab, a chip manufacturing project in East Texas announced in March 2026.