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Wed, 05 Aug 2026

Wed, 05 Aug 2026 SpaceX shares sink after first earnings report reveals huge AI spending plans

Elon Musk told investors that people were "underestimating" his company.
SpaceX, the space exploration company founded by Elon Musk, reported its first-ever earnings on Wednesday, revealing a significant increase in spending on artificial intelligence (AI). The company's quarterly revenue nearly doubled to $7.8 billion, but its expenses skyrocketed to $18.3 billion, with AI being the main driver of this growth. This has caused investors to become concerned, leading to a 9% drop in shares on Wednesday. Despite this, Musk expressed optimism about SpaceX's future prospects, citing the company's Starlink internet satellite service as a key area for growth. He predicted that Starlink could become the dominant player in global internet provision, saying it's "not out of the question" that it will operate most of the world's internet at some point. SpaceX also announced plans to expand its AI business, which currently includes Google and Anthropic among its clients. The company aims to increase its compute power capacity from 1.4 gigawatts to 10 gigawatts by next year through the development of data centers. Musk believes that SpaceX will reach $1 trillion in revenue by 2030, a year earlier than previously expected. However, this forecast has yet to be confirmed by analysts, who are still trying to grasp the scope and potential of the company's AI and data center businesses. Investors remain concerned about SpaceX's spending habits and the lack of clarity around its business model, but Musk remains confident that the company will continue to grow and innovate.