SpaceXs massive bets on Starlink, AI fuel excitement and anxiety across Wall Street | Latest Tech News
SpaceX isn’t just a rocket company anymore — and its wide-ranging bets on the whole lot from satellites to artificial intelligence have sparked a combination of enthusiasm and anxiety across Wall Street.
On one hand, Elon Musk’s company is minting money from Starlink, the satellite tv for pc operator that beams web access to properties, companies and governments worldwide. On the other hand, SpaceX lately ingested a money-losing AI division that homes the social media app X and xAI, recognized for its snarky Grok chatbot.
While buyers are wagering on Musk’s grandiose plans to fly humanity back to the Moon and ultimately to Mars, not everyone seems to be satisfied. SpaceX disclosed $4.9 billion in losses last yr forward of its IPO. That has led skeptics including famed short-seller Jim Chanos to argue its valuation is way too high.
Elon Musk spoke forward of the IPO via video convention. AP
Here’s a rundown of SpaceX’s companies, including those that are making money — as effectively as those whose losses are still churning stomachs on Wall Street.
Starlink
Musk’s satellite tv for pc community is the golden goose at SpaceX, with an current community of more than 10,000 satellites in orbit and more than 10 million subscribers around the world.
Starlink had an working revenue of $1.19 billion in the first quarter of this yr and some analysts project that its annual income may hit $20 billion in income in 2026 alone – making it SpaceX’s largest division by far.
Starlink accounted for about 60% of SpaceX’s total income last yr, which got here in at $18.7 billion – up 33% year-over-year.
Musk has teed up plans to triple the quantity of satellites operated by Starlink in the years forward.
SpaceX executives have a good time at the company’s IPO on Friday. Getty Images
SpaceX rocket launches
On Musk’s watch, SpaceX has ramped up its tempo of reusable rocket launches while working carefully with NASA and the Pentagon. The firm performed 170 launches last yr alone – up from just 27 in 2020.
“SpaceX’s cost advantage is driven by its reusable launch architecture, particularly the ability to repeatedly reuse boosters, thereby significantly lowering per-launch costs,” analysts at Morningstar said in a observe to purchasers on June 1.
The space division generated $4.09 billion in income in fiscal 2025, according to SEC filings. That was an increase of 7.6% year-over-year – but it still posted an working loss of $657 million.
SpaceX is at present developing a massive next-generation rocket called Starship, which is the key to Musk’s imaginative and prescient of establishing a everlasting Mars colony.
SpaceX has stepped up the tempo of its rocket launches. ZUMAPRESS.com
Artificial intelligence division
The AI division including both xAI and X, the social media platform previously recognized as Twitter. In February SpaceX formally merged with xAI, which had beforehand operated as a separate entity and is now thought of a wholly owned subsidiary.
So far, xAI has struggled to keep tempo with more established companies likes OpenAI and Anthropic, which have taken a large chunk of the company market.
Currently, AI is the most important drag on SpaceX’s stability sheet. The section produced just $3.2 billion in income. The section alone accounted for a $6.36 billion working loss in 2025, which was enough to push your entire company into the purple.
In what many analysts noticed as a bid to bolster SpaceX’s stability sheet forward of the IPO, Musk announced two major offers — an settlement to rent its Colossus 1 AI data heart to Anthropic for $1.25 billion a month, and a comparable $920 million deal with Google, a major SpaceX shareholder.
SpaceX’s IPO was the most important in historical past. John Angelillo/UPI/Shutterstock
Huge spending
The proceeds from SpaceX’s IPO can be needed as Musk ramps up his AI investments. SpaceX’s capital expenditures hit $20.7 billion in 2025 alone, with a lot of that money devoted toward the development of Grok and the massive Colossus and Colossus II data facilities.
SpaceX spent $7.7 billion on AI investments in the first quarter of 2026 alone – which equates to roughly $31 billion for the full yr if the tempo continues.
“In our newly acquired AI segment, we plan to prioritize growth and investment to capture significant opportunities in AI applications and compute infrastructure,” SpaceX wrote in its S-1 submitting.
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