At the SpaceX earnings conference, CEO Elon Musk stated that he expects the annual recurring revenue ( ARR ) of SpaceX to reach $500 billion to $1 trillion by the end of 2027, and mentioned the possibility of "reaching 20 gigawatts of computing power ( GW ) next year." He also confirmed that SpaceX and Tesla are discussing a merger.
Elon Musk stated that SpaceX plans to add 20GW of power and cooling infrastructure in 2027. The speed at which SpaceX deploys power, cooling, and supporting infrastructure is expected to exceed the total of all other manufacturers combined. He said that SpaceX is quite confident of launching 10GW of computing power by 2027; if less than 13GW of computing power is launched by the end of next year, he would be surprised.
When talking about the impact of AI, Musk stated that it is expected that the AI intelligence agent will drive a 1000-fold increase in bandwidth demand within 3 to 5 years. The constraints of super intelligence (SI) lie more in power, cooling, and infrastructure, rather than chips.
He said that the agent Grok Bot launched by SpaceX AI is the product with the fastest growth rate he has ever seen. With the continuous optimization of Grok Bot, the frequency of user usage is also increasing. SpaceX will deploy Grok Bot on a large scale for enterprises within a few weeks.
SpaceX Chief Operating Officer ( COO ) Gwynne Shotwell stated during the teleconference that the company is expected to achieve reusable launch of the second stage of the rocket by the beginning of next year.
Regarding Starlink's business, Shotwell stated that the production of Starlink ( Starlink ) aviation terminals is expected to double by the end of this year. In the future, both Starlink's corporate business revenue and government-related business revenue are expected to exceed consumer business revenue. Starlink has the potential to handle a significant portion of the global internet traffic.
Shotwell also revealed that the monthly active users of Starlink's mobile direct connection service have exceeded 22 million. The transaction for acquiring spectrum will make Starlink one of the major mobile operators in the United States.
Regarding the merger of two of his companies, Musk stated that both SpaceX and Tesla have special committees discussing the merger. As a person with a conflict of interest, he is not able to participate in the discussions within these committees.
Elon Musk stated that the merger between SpaceX and Tesla is not a foregone conclusion and still requires the support of shareholders. He mentioned that there are too many benefits to merging SpaceX with Tesla.
