SpaceX's first detailed financial disclosure paints a stark picture of two contrasting businesses. The satellite internet service Starlink has emerged as the sole profit generator, while the AI ventures continue to burn massive amounts of cash.
Starlink: Revenue and Profit Surge
Starlink generated $11.4 billion in revenue last year, up 50% year-over-year, with an adjusted EBITDA of $7.2 billion and a 63% margin. The low-earth-orbit satellite network now serves millions of users globally, delivering approximately $3 billion in free cash flow. This makes Starlink the undisputed cash cow within the SpaceX group.
AI Division: Losses Exceed OpenAI and Anthropic Combined
In stark contrast, SpaceX's AI division—including xAI—incurred annual losses of nearly $14 billion, surpassing the combined burn rates of OpenAI and Anthropic. The rocket launch segment also struggled, posting $4.1 billion in revenue but negative free cash flow of about $3 billion. Overall, SpaceX's total capital expenditures of $20.7 billion exceeded its revenue, leading to a consolidated negative free cash flow of approximately $14 billion.
$1.25 Trillion Valuation and June IPO
Despite the structural financial imbalance, SpaceX maintains a valuation of $1.25 trillion and is planning to go public in June. The IPO could be the largest in history, drawing intense scrutiny. The key question remains: can Starlink's growth continue to offset the massive losses from AI and other ventures, and will investors accept a business model that uses satellites to fund rockets and artificial intelligence?