SpaceX is spending more than ever on AI. Its AI business is also bringing in more than Starlink for the first time. (www.businessinsider.com)

SpaceX has ramped up its investment in artificial intelligence, reporting a staggering $16.4 billion in AI-related capital expenditures during the third quarter, significantly outpacing its overall capital budget of $19.6 billion. This surge in spending reflects the company’s commitment to advancing its AI capabilities, particularly after the acquisition of Cursor. Notably, SpaceX's AI revenue has soared to $7.6 billion, surpassing analysts' expectations and marking a historic milestone as the AI segment now outperforms the Starlink business for the first time. This development is significant for the AI/ML community as it demonstrates SpaceX's pivot towards AI amid increasing competition from industry leaders like Anthropic and OpenAI. CEO Elon Musk has acknowledged the need for SpaceX to catch up in the AI race, which may signal an expanding role for AI technologies in space operations and beyond. Additionally, SpaceXSI's leasing of computing power to notable companies has generated $1.6 billion, underscoring the financial viability of AI ventures and hinting at future collaborations that could further elevate the company's standing in the evolving AI landscape.