SpaceX records first quarterly profit of $4.4bn as AI revenue surges

Elon Musk’s SpaceX has reported its first quarterly profit as a publicly traded company, driven by surging revenue from artificial intelligence and computing services.

According to Associated Press, as reported by The Punch, the company announced Tuesday that net income reached $4.4 billion in the July-to-September quarter, reversing a $1.1 billion loss recorded during the corresponding period last year.

Revenue increased by 161 percent to $14.6 billion, reflecting growing demand for computing power rented to artificial intelligence companies.

SpaceX’s AI division benefited significantly from agreements allowing technology firms to access its computing infrastructure.

The results mark a major financial turnaround following the company’s stock market debut earlier this year.

SpaceX began trading on the Nasdaq on June 12 after an initial public offering priced at $135 per share.

Its second-quarter financial results showed revenue of $7.8 billion and a net loss of $541 million.

Following Tuesday’s announcement, SpaceX shares rose more than two percent in after-hours trading, reflecting investors’ positive reaction to the earnings report.