SpaceX Rallies as AI Revenue Tops Starlink and Tesla Merger Talks Emerge
SpaceX reported third-quarter revenue of $14.6 billion, up 161%, and net income of $4.4 billion, its first quarterly profit as a public company. Its Super Intelligence segment generated $7.56 billion, surpassing Starlink for the first time, helped by cloud agreements and the Cursor acquisition. The company also confirmed independent committees are reviewing a possible merger with Tesla.
SpaceX’s third-quarter results showed revenue of $14.6 billion, a 161% rise, and net income of $4.4 billion—its first quarterly profit since going public. The Super Intelligence unit reached $7.56 billion in revenue, up 195% from the prior quarter, and posted $431 million in operating profit. Cloud deals, greater Grok use, and August’s Cursor purchase supported that growth.
Starlink’s connectivity unit brought in $5.25 billion, up 69%, with $2.37 billion in operating income. Subscribers totaled 13.6 million, below the roughly 14.2 million analysts expected, while average revenue per user improved from the prior quarter but stayed below the year-earlier level. The legacy Space segment recorded an operating loss despite sequential revenue growth.
The results could strengthen investor confidence in AI infrastructure while making SpaceX’s finances more sensitive to computing costs and cloud demand. Starlink users may see continued service expansion, though subscriber growth and pricing trends will matter. A Tesla merger review could affect shareholders, employees, and customers of both firms by changing ownership, governance, and strategic priorities. Broader society may feel these shifts through competition in satellite connectivity and AI services, as well as through the energy and infrastructure demands of large-scale computing.