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SpaceX's first results put Musk's AI spending under Wall Street microscope
['Akash Sriram', 'Min Read']
Yahoo Finance - Business Finance, Stock Market, Quotes, News
By Akash SriramAugust 3 (Reuters) - SpaceX's first earnings report since its record-breaking IPO will provide an early gauge of whether Starlink's profits can sustain the company's rapidly growing spending on AI and space ventures.
Due after the market closes on Tuesday, the results will give SpaceX's limited pool of public investors their first chance to judge whether the financial case behind the company's lofty valuation supports CEO Elon Musk's vision of a powerhouse spanning AI, space and telecommunications.
SpaceX's AI expansion consumed $7.72 billion in the January-March quarter, accounting for about three-quarters of the company's total capital spending.
Analysts expect SpaceX to report capital expenses of nearly $14.05 billion in the April-June quarter.
Capital spending in the AI segment is expected to surge more than six times to $10.2 billion from the same period last year, according to Visible Alpha data.