SpaceX made more revenue as an AI company than a space company
TL;DR
SpaceX's AI revenue grew more than three times to $2.6 billion from the year before, mostly because of deals that the company made to provide compute to other AI companies, according to SpaceX's quarterly earnings. The AI division, which the company said in its documents to go public was the source of most of its value, lost $1.5 billion this quarter, slightly less than in the same quarter last year.
Nauti's Take
The interesting part is how fast compute is turning into a business of its own: more neocloud suppliers means more negotiating power for customers. The critical side is that the division still lost 1.5 billion dollars despite tripling revenue, so it grows on capital rather than margin.
Anyone signing long term compute contracts should lock in price guarantees and exit clauses.
Sources