Investors weigh heavy AI capital expenditures against rapid revenue growth as SpaceX reports $15.8 billion in quarterly AI spending.
SpaceX shares fell 9% in premarket trading, slipping below their $135 IPO price amid investor concerns over elevated AI spending. The company reported AI revenue more than tripled year-over-year, but capital expenditures surged to $15.8 billion in the quarter.
Despite signing $6.7 billion in new cloud computing contracts and projecting a $100 billion annualized revenue run rate by year-end, doubts persist about the sustainability of funding AI investments through its Starlink profits. Traditional data center investments typically require years to recover costs, contrasting with SpaceX’s claimed less-than-one-year payback.
The decline reflects broader skepticism about the timeline for returns on AI infrastructure, even as the company highlights improving economics and new agreements.