Elon Musk told SpaceX staff in an internal address that the company's AI business will overtake every other product line in revenue within a month, then significantly widen that lead by the fourth quarter. The claim follows SpaceX's June IPO, its acquisitions of xAI and Cursor, and a second-quarter earnings report that already shows AI revenue in the billions.
Elon Musk has predicted that AI will earn SpaceX more money than its other offerings. On Tuesday, SpaceX posted a 30-minute all-hands recording on X in which Musk told employees that AI has become an extremely important part of SpaceX's future.
Musk sets a September timeline
Musk told staff that SpaceX's AI revenue would overtake all other SpaceX revenue as early as September, according to the recording. He then said the gap would grow further, adding it "will significantly exceed all other SpaceX revenue in the fourth quarter." Musk also outlined plans to train Grok, SpaceX's family of large language models, on the company's internal information, saying employees would help shape the AI.
AI revenue reaches $2.56 billion in Q2
The company disclosed in its August 4 second-quarter earnings report that AI generated $2.56 billion of its $7.81 billion in total quarterly revenue. Its connectivity products earned $4.29 billion, and its space products brought in $962 million.
Nvidia hardware and a trillionaire IPO
SpaceX is planning to launch data centers into space to train and run AI models. Musk said the company will build its AI compute exclusively with Nvidia, using only Nvidia's Vera Rubin architecture.
These plans build on a run of AI-focused moves: SpaceX acquired AI coding startup Cursor for $60 billion in June and rebranded as SpaceXAI after acquiring xAI. The company's June IPO propelled Musk to become the world's first trillionaire, and its revenue is now split between AI, connectivity, and space products.
Source: Business Insider
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