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Space Exploration Technologies targets $100 billion annual revenue by December
Deutsche Bank estimated that existing compute deals alone could generate about $45 billion to $50 billion in annualized revenue entering December.
Space Exploration Technologies Corp., trading as SPCX, set an ambitious goal to reach an annualized revenue run rate of $100 billion by December, more than tripling its current just over $30 billion run rate, after its first earnings call as a public company, according to Yahoo Finance. Deutsche Bank mapped out the contracts it believes could make the target achievable. In that framework, SpaceX's neocloud AI compute business generated $1.6 billion in second-quarter revenue, entirely from Anthropic, and could reach roughly $3.75 billion in quarterly revenue by the third quarter. The bank also highlighted an agreement with Google worth up to $920 million a month that begins ramping next month and is expected to hit its full run rate in October. Separately, SpaceX signed a new $6.7 billion deal covering six months, which Deutsche Bank suspects could involve the U.S. government, and it expects at least one additional large compute deal to be signed before year-end. Alongside compute agreements, Deutsche Bank factored in SpaceX's pending acquisition of AI coding startup Cursor, expected to close in the third quarter. Deutsche Bank assumes Cursor’s annualized revenue, reported to have grown from $2 billion in February to $4 billion by early June, could increase another two to three times by December, while SpaceX targets 5 to 10 gigawatts of AI compute capacity next year, up from just over 2 gigawatts.