SpaceX pivots toward AI revenue and updates Starship timelines

Elon Musk has informed SpaceX employees that artificial intelligence is projected to become the company’s primary revenue driver, potentially surpassing rockets and Starlink. During an internal address, Musk stated that AI revenue could reach between $300 billion and $500 billion annually if the company expands its AI compute capacity from 1.4 gigawatts to 10 gigawatts by the end of 2027.

Musk predicted that AI will account for 99% of SpaceX’s value within four to five years. This growth is linked to Terafab, a joint chip manufacturing venture between Tesla, SpaceX, and xAI.

Regarding Starship development, Musk revised his previous timeline for catching the spacecraft with a launch tower, stating it will likely take several months rather than occurring during the next test flight. He also projected that the first reflight of the ship could occur by the end of this year or early next year. SpaceX continues to conduct testing, including recent static-fire tests of the Raptor engine to prepare for upcoming orbital missions.