SpaceX expands vertical integration to fiber optics and AI infrastructure

SpaceX is expanding its vertical integration strategy beyond rocket manufacturing into telecommunications and AI infrastructure. The company is reportedly evaluating the in-house production of fiber optic equipment for its Starlink satellite network. This move aims to reduce costs and mitigate supply chain risks associated with increasing US restrictions on Chinese-sourced components, such as optical transceiver modules.

In addition to telecommunications, SpaceX is planning significant AI computing capacity. Reports suggest the company aims to build 10GW of AI computing power, with approximately 60% reserved for internal use by SpaceX, xAI, and Tesla. This capacity is expected to grow to 20GW by 2028.

On the deployment front, SpaceX’s Starship rocket has successfully completed its first deployment of Starlink V3 satellites into low Earth orbit. During its 14th flight mission, the Starship vehicle deployed 26 V3 satellites, a milestone that enhances the capacity and expansion speed of the global Starlink network.