SpaceX is barely Space and mostly X

Key Points:

• SpaceX's recent earnings reveal that the majority of its revenue now comes from its satellite internet service Starlink and leasing data center capacity for AI companies, with its space launch business contributing just over 10% of revenue and remaining unprofitable.
• The company’s AI-related data center operations, including leasing compute to firms like Google and Anthropic, generated significant revenue and spending, overshadowing the traditional space and connectivity segments.
• SpaceX initially built data centers to support Musk’s AI project Grok but ended up renting out most capacity due to operational challenges, shifting the company into competition with other neocloud providers despite the high costs and risks of the bare-metal compute business.
• Musk has ambitious plans for orbital data centers and a mass accelerator on the Moon, but experts remain skeptical about the feasibility and practicality of these proposals, viewing them as speculative and potentially more PR than reality.
• With insider lockups expiring soon and Tesla stock under pressure, there is concern that insider selling could negatively impact SpaceX’s stock, while Musk’s political connections may play a role in advancing his data center ambitions despite widespread opposition.