SpaceX (SPCX) reported earnings last night.

Here are the highlights:

Quarterly revenue hit $14.6 billion, up 161% year-over-year. Successfully launched the first revenue-generating Starship mission in Q3. The company’s AI segment is now dwarfing both Space and Connectivity (Starlink). Starlink revenue YTD has already surpassed 2025 revenue by 12%. AI revenue YTD has already surpassed 2025 revenue by 3x. All this AI growth comes at a price. The company literally named SpaceX is now spending 10x more money building AI infrastructure than it is building its space business. Both SpaceX and Tesla have formed special committees to discuss merging.

SpaceX Isn’t a Space Company

“You don’t bring mom and dad the report card home early if you didn’t get great grades!”

Well… Elon Musk moved SpaceX’s third quarter earnings report up by two weeks.

And his grades were spectacular!

• Revenue: $14.6 billion vs. $12.7 billion expected

• Earnings Per Share: $0.35 vs. $0.13 expected

Here’s how launches stack up year-to-date:

Starlink subscribers are ramping up:

But remember… SpaceX isn’t a “space” company.

It’s an AI company.

SpaceX said so itself in its S-1 – the 300+ page document companies file before they IPO.

SpaceX’s Total Addressable Market by Segment

Total addressable market is the total amount of money a company could theoretically make if it captured 100% of a particular market.

• SpaceX estimates the TAM for Space is $370 billion.

• Connectivity (Starlink) is $1.6 trillion.

• Meanwhile, the TAM for AI is $26.5 trillion.

Again… SpaceX isn’t a space company.

It’s an AI company. And the financials they just released prove it.

The Space segment is consistently the lowest revenue-generating segment.

Connectivity (Starlink) has historically generated the majority of SpaceX’s revenue.

But AI is quickly becoming the growth engine of the business.

Revenue from the segment has already tripled from its 2025 total.

Most of this AI revenue is coming from cloud computing.

SpaceX owns and operates massive data centers packed with computing power that it rents to companies building and running AI models.

Increasingly, SpaceX is competing for the same workloads as hyperscalers like Amazon, Microsoft, and Google.

And it has already landed several major customers:

• Anthropic Deal: $1.25 billion per month (valued at over $40 billion total through May 2029).

• Google Cloud Deal: $920 million per month from October 2026 through June 2029 (totaling $30 billion over 32 months).

• Reflection AI Deal: $150 million per month starting July 1, 2026 (valued at $6.3 billion total through 2029).

• Undisclosed Customer: $1.11 billion per month scheduled to start December 1, 2026 ($13.3 billion per year).

SpaceX is investing heavily to meet this growing demand for its AI compute power.

Meanwhile, just $3.8 billion was invested into Space and $4.2 billion into Connectivity in 2026 year-to-date.

Yes… the company literally named SpaceX is now spending 10x more money building AI infrastructure than it is building its space business.

That tells you where Elon believes the biggest opportunity lies.

Other Things to Note:

Tesla-SpaceX Merger – Musk confirmed that both SpaceX and Tesla have formed special committees of independent directors to explore a potential merger.

Because Musk has interests in both companies, he said he is considered a “conflicted party” and cannot participate in the committees’ discussions.

He did caution that a merger is not “a certainty,” however.

But when asked whether he personally thinks combining the companies would be a good idea, his answer was clear: “Yes.”

Supply Constraints – Elon noted that the shortage of power, cooling, and infrastructure are major bottlenecks – not chips right now. Let’s see what this news does to Nvidia, AMD, etc.

But it’s also a vote of confidence for AI suppliers like Credo, Amphenol, Corning, Bloom Energy, GE Vernova, and more.

Elon’s Living in Memphis – Elon said he’s now spending four days a week at SpaceX’s Memphis data center, personally working to get the company’s massive supercomputing cluster online.

Once again, this proves where his priorities are right now: AI.