SpaceX Expands AI Infrastructure After $250 Billion xAI Acquisition
SpaceX is investing heavily in data centers to sell computing power and scale its Grok chatbot following its acquisition of xAI.
Space Exploration Technologies Corp. is aggressively expanding its artificial intelligence infrastructure following a $250 billion acquisition of xAI earlier this year. The company is investing in massive data centers to support its Grok chatbot and sell computing power to third parties, including Alphabet and Anthropi.
Financial reports show SpaceX generated $2.5 billion in AI revenue last quarter, while spending $15.8 billion on AI capital expenditures in the second quarter alone. CEO Elon Musk stated the company is on track to reach $100 billion in annual recurring revenue by the end of 2026, with a long-term total revenue goal of $1 trillion by 2030.
Parallel to its AI push, the company is growing its Starlink satellite internet platform, which saw a 65% year-over-year revenue increase to $4.3 billion last quarter. SpaceX plans to launch new satellites to enable direct-to-device smartphone connectivity, though it faces increasing competition from Amazon and AST SpaceMobile. Some analysts have questioned whether Musk's $1 trillion revenue target is feasible.
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