SpaceX is barely Space and mostly X
SpaceX is increasingly functioning as a data center and cloud computing provider rather than a pure aerospace company. Financial data shows that its AI and connectivity divisions significantly outperform its rocket launch business in revenue and capital expenditure.
Why it matters
This reveals a major pivot in the business model of a key aerospace player, highlighting the massive capital influx into AI infrastructure.
Once, I had some questions about why SpaceX, Elon Musk’s healthiest company, acquired xAI, his sickliest one. Now I have some questions about why we’re calling the whole thing SpaceX.
Look, what we have here, by revenue, is primarily a telecom company and a company that rents compute, according to SpaceX’s first quarterly earnings statement as a public company. The space sector of the business didn’t break a billion dollars this quarter and contributed only a touch over 10 percent of the company’s revenue. SpaceX remains its own biggest customer. There just aren’t enough other people who want its rockets. And, I dunno, maybe if the rockets were a primary focus of the company, SpaceX wouldn’t be in danger of blasting a new crater into the Moon with its space trash.
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