Spacex's AI division surpasses revenue expectations

SpaceX's AI division, now known as 'Super Intelligence,' has exceeded investor expectations, contributing 52% of the company's revenue in the second quarter of 2026. The company reported $14.6 billion in third-quarter revenue, driven by growth in its AI segment, which includes Cursor, Grok, and its neocloud business, now boasting 1.7 GW of compute. Elon Musk emphasized the importance of infrastructure, stating that deploying superintelligence is constrained by power and cooling rather than chips. He noted that SpaceX engineers are working to solve these challenges, comparing the situation to the New York Yankees playing in Little League. Despite capital expenditures of $19.6 billion, SpaceX achieved a net income of $4.4 billion, reversing a $1 billion loss from the same quarter in 2025. Musk predicted annual recurring revenue for the Super Intelligence segment could reach between $500 billion and $1 trillion by year-end 2027. SpaceX also reported $1 billion in income from bitcoin price recovery and an unspecified related-party income. The company continues to invest in Colossus II, its second data center, and Starship development. While the company is profitable for the third quarter, it still faces a $413 million net loss for the first nine months of 2026.