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SpaceX slides as AI spending worries overshadow early returns
['Akash Sriram', 'Wed', 'August At Am Gmt', 'Min Read']
Yahoo Finance - Business Finance, Stock Market, Quotes, News
By Akash SriramAug 5 (Reuters) - SpaceX touted faster-than-expected returns from its AI spending on its first-ever earnings call as a public company.
SpaceX reported AI revenue that more than tripled from a year earlier and disclosed several new cloud computing agreements, even as quarterly capital spending on AI climbed to $15.8 billion.
Chief Financial Officer Bret Johnsen said the economics of those investments were improving rapidly, but also signaled that AI spending would remain elevated.
THE AI PAYBACK BETThe comments at the post-earnings call marked a shift in the investment debate surrounding SpaceX.
Before the earnings release, investors largely viewed Starlink's growing cash flows as the primary source of funding for the company's AI ambitions.