SpaceX AI Revenue Could Eclipse Rockets by September, Reach $500 Billion by 2027, Elon Musk Claims
12 Sources
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SpaceX could make $500 billion in 2027, Elon Musk says
SpaceX is an AI company now, and it sees huge money in the burgeoning field. SpaceX isn't a launch company anymore. SpaceX is famous for launching, and landing, its Falcon 9 and Falcon Heavy rockets and sending astronauts to space aboard its Dragon crew capsule. Recently, however, the company has
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'Trained on you': Musk says SpaceX AI will out-earn rockets
Musk told staff AI will out-earn rockets and satellites by September. He also told them their own work will train it. SpaceX posted a 30-minute all-hands to X on Tuesday. Elon Musk used it to make two claims, and they only make sense together. The first is a number. AI revenue will pass everything
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Morgan Stanley Warns Investors Underestimating SpaceX's AI Unit
They said SpaceX's acquisition of Cursor could drive significant revenue growth, with Cursor's annual revenue run rate seen reaching $33 billion by 2030. Wall Street's expectations for SpaceX's AI unit are so low, it may not need a pogo stick -- let alone a rocket -- to clear the bar, Morgan
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SPCX's AI Dreams Hinge on One Huge Starship Test, Bernstein Says: Full Reusability Is 'Absolutely Central
Bernstein says Space Exploration Technologies Corp.'s (NASDAQ:SPCX) long-term artificial-intelligence (AI) upside depends on solving one of rocketry's hardest problems, namely, making Starship fully and rapidly reusable, which the firm says is necessary for orbital AI infrastructure at
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Why Investors Are Suddenly Bullish on SpaceX Again - SpaceX (NASDAQ:SPCX)
The company's shares have staged a sharp rebound since their Aug. 6 low, fueled by an unusual combination of factors: a major insider lock-up expiry that passed without the feared wave of selling, a company-wide meeting where CEO Elon Musk doubled down on an AI-centric future, and growing
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Morgan Stanley doubles down on SpaceX stock for investors
There is a number making the rounds on Wall Street right now that would have seemed disconnected from reality 12 months ago: a $600 price target for a company that went public at $135 in June and briefly fell below that listing price within weeks of trading. That kind of number does not get
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Elon Musk Says AI Will Become SpaceX's Biggest Business
SpaceX (SPCX) stock investors spent the lion's share of the post-IPO period questioning if its expensive AI push deserves any value. Subsequently, the stock's steep slide sharpened that skepticism. Nevertheless, analysts felt SpaceX was being valued purely on a single revenue engine, while AI was
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Elon Musk Says AI Will Be SpaceX's Biggest Business by September: Does the Math Check Out? Elon Musk: Spa
SpaceX (NASDAQ:SPCX) CEO Elon Musk says artificial intelligence will overtake everything else the company sells as soon as next month. In an all-hands meeting, Musk said AI revenue "will exceed all other SpaceX revenue probably in September, like next month," and will "significantly exceed" the
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Morgan Stanley flags four catalysts for SpaceX stock through year-end By Investing.com
Investing.com-- A series of developments around artificial intelligence, Starship and computing infrastructure could prove consequential for SpaceX (NASDAQ:SPCX) shares through year-end, Morgan Stanley said, highlighting four catalysts. The bank said Grok 4.6, released recently, has moved close to
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SpaceX shares soar 11% as Wall Street bets on Musk's 'real-world' AI ambitions By Investing.com
Investing.com -- SpaceX shares surged 11% following a major Wall Street endorsement of its artificial-intelligence capabilities and renewed investor enthusiasm over its expanding suite of enterprise software products. The rally was sparked by a research note from Morgan Stanley arguing that public
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Morgan Stanley reiterates SpaceX stock rating on AI platform potential By Investing.com
Investing.com - Morgan Stanley reiterated an Overweight rating and $300 price target on SpaceX (NASDAQ:SPCX). The firm values SpaceX's Space and Connectivity businesses at $127 per share, or 52 times 2028 estimated EBITDA. That leaves $12 per share attributed to Consumer and Enterprise AI,
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Why is Space Exploration Technologies stock surging today? By Investing.com
Investing.com -- Space Exploration Technologies Corp stock surged 7.0% in mid-day trading after Morgan Stanley analyst Adam Jonas published a note reaffirming an Overweight rating and $300 price target while simultaneously outlining a $600 bull-case valuation -- a scenario that would place the
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Elon Musk told SpaceX employees that AI revenue will surpass all other company income by September, positioning the rocket maker as an AI infrastructure giant. With $2.56 billion in AI revenue last quarter, SpaceX aims for $300-500 billion annually by 2027 through compute sales and the $60 billion Cursor acquisition.
SpaceX AI Revenue to Overtake Launch Business Within Weeks
Elon Musk announced that SpaceX AI revenue will exceed all other company income by September, marking a fundamental shift for the aerospace manufacturer. During an all-hands meeting posted on X, Musk stated AI had "become an extremely important part of SpaceX's future" and predicted it would represent 99% of the company's value within five years
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. SpaceX reported $2.56 billion in AI revenue during the second quarter, compared to $5.25 billion from connectivity and space products combined2
. For AI to exceed everything else by next month, it must more than double while other revenue streams remain flat. Musk corrected himself mid-sentence, changing "probably" to "definitely" when making the September claim2
. The company significantly exceeded all other SpaceX revenue in the fourth quarter, according to his projections.
Source: Benzinga
Ambitious $500 Billion Revenue Target Hinges on AI Compute Expansion
SpaceX's AI ambitions center on scaling compute capacity from 1.4 gigawatts to 10 gigawatts by the end of next year. Musk calculated that at $30-50 per watt, this expansion would generate $300-500 billion in annual AI revenue by 2027
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. The company currently sells AI compute to tech companies and AI labs, positioning itself as an AI infrastructure provider rather than just a launch services company. SpaceX filed paperwork identifying a total addressable market of $28.5 trillion, with nearly $23 trillion in the AI field alone1
. For context, the entire U.S. gross domestic product reached approximately $30.8 trillion last year. Bernstein forecasts roughly $600 billion in SpaceX revenue by 2031, below Musk's $1 trillion target by 20304
.Wall Street Undervalues SpaceX's AI Unit, Morgan Stanley Warns
Morgan Stanley analysts argued that investors are significantly underestimating SpaceX's AI unit, calculating the current implied valuation at just $12 per share, "well below even neocloud peers"
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. Analysts led by Adam Jones maintained a $300 price target, stating "very few investors are bullish SpaceX's AI business beyond neocloud," referring to data center leasing deals with Anthropic and Alphabet3
. The firm identified the Cursor acquisition and new Grok AI model rollouts as potential catalysts that could brighten the outlook for SpaceX AI. Enterprise AI adoption is accelerating rapidly, with median monthly AI spend per employee growing 167% year-over-year to $11 in June, according to the Ramp AI Index3
. The top 1% of companies in AI spending shell out nearly $5,000 per employee monthly for AI services.Cursor Acquisition Expected to Drive $33 Billion in Annual Revenue by 2030
SpaceX completed its $60 billion all-stock acquisition of Cursor parent Anysphere this month, adding a leading AI coding platform that serves more than 50,000 enterprises, including 64% of the Fortune 500
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. Morgan Stanley expects Cursor's annual revenue run rate to skyrocket from $4 billion in June to $8 billion by year-end, $17 billion next year, and $33 billion by 20303
. The acquisition gives SpaceX access to developers' coding requests and design decisions, which could help improve AI models such as Grok4
. Bernstein analyst Douglas Harned called the software business "a little bit of a wildcard" that could provide additional upside not yet incorporated into models4
.Employee Data to Train Grok AI Model Raises Privacy Questions
Musk announced that SpaceX will train Grok on "the sum total of all SpaceX information," including employee data. "In a way, it will be trained on you," he told staff during the meeting
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. He framed this as a safety argument, stating employees are "a collection of some of the very best humans on Earth" whose values should be inherited by the AI1
. SpaceX has not disclosed which employee data it plans to collect, how it will be gathered, or whether staff can decline participation2
. A similar Meta program that collected employee keystrokes and mouse movements was paused in June after private conversations and performance data became visible across the company. AI companies have exhausted readily available internet data and now seek recordings of how humans actually operate computers to train AI agents.Related Stories
Starship Reusability Critical to Orbital AI Infrastructure Plans
Bernstein emphasized that full reusability of Starship is "absolutely central to the AI play here long term, and to the kinds of valuations that we're seeing right now"
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. SpaceX's own filings warned that AI compute satellites at scale need full Starship reusability to become economically compelling, and slower turnaround could raise costs and delay deployments4
. The company aims to begin orbital AI compute demonstrations by late 2027, ahead of possible deployments in 2028. Bernstein's model assumes approximately 3,500 Starship launches in 2031 to support this infrastructure. SpaceX has spent more than $15 billion developing Starship, and Musk previously called achieving fully reusable rockets a "crazy hard problem"4
. Long-term plans include establishing factories on the moon to build orbital data centers and launching satellites via electromagnetic mass drivers.
Source: Space
Investor Sentiment Shifts as SPCX Stock Rebounds 28% This Month
SPCX stock has surged over 28% in August, trading above its $135 IPO price after a feared wave of insider selling following the first lock-up expiry never materialized
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. The rebound follows a sharp selloff earlier this month when investors focused on aggressive AI investments and mounting capital expenditure despite strong quarterly results5
. Starlink continues providing financial stability, generating roughly 70% of SpaceX's revenue in the latest quarter and helping offset losses from capital-intensive AI and Starship businesses5
. Musk promised employees that "anyone at SpaceX who wants to go to the moon or Mars will be able to go in the future," giving his word on it1
. However, Grok trails OpenAI and Anthropic on several major benchmarks, creating questions about whether the company can execute on its ambitious AI vision2
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