SpaceX’s data facilities and Grok agents exceeded investor expectations in the third quarter, as the company shifts its focus from being solely a space enterprise to prioritizing artificial intelligence, which currently constitutes 52% of its revenue.

On Tuesday, CEO Elon Musk’s tech conglomerate announced a third-quarter revenue of $14.6 billion, according to its regulatory filing.

This figure was propelled by growth across all sectors, particularly its rebranded “Super Intelligence” division, which contributed $7.5 billion from the newly acquired Cursor coding tool, Grok bot, and most notably, the developing neocloud operations, which now has 1.7 GW of computing capacity. The AI sector earned $431 million in profit, which could have been higher were it not for $1.2 billion in one-off stock-based compensation costs associated with the Cursor acquisition.

The overall revenue was further enhanced by approximately $1 billion derived from the rebound in Bitcoin prices and unspecified income from related parties that might be linked to a SpaceX investment in another firm.

The rising revenue contrasts with total capital expenditures of $19.6 billion, as SpaceX proceeds with the development of a second data center project, Colossus II, and increases investments in Starship, the heavy-lift rocket deemed essential for launching a new fleet of Starlink satellites and constructing orbital data centers. CFO Bret Johnsen indicated that the company plans to invest $35 billion to $40 billion in new capital in the fourth quarter.

During a livestreamed session discussing the results with investors, Musk mentioned he’s spending four days a week in Memphis, Tennessee, where Colossus II is located, working on bringing the data center online.

“People are beginning to see that the limitation on the deployment of super intelligence is more about power, cooling, and infrastructure than about chips,” Musk stated, noting he had assigned a team of SpaceX engineers to address that issue. “This is somewhat like the New York Yankees competing in Little League. It’s not equitable, but the outcome allows us to deploy power-cooling infrastructure at a speed that outpaces anyone else.”

As an illustration, Musk pointed out that data center turbine manufacturers are experiencing delays of 12 to 18 months in acquiring the materials needed for the blades and vanes. In response, SpaceX is leveraging its metal casting capabilities to produce these components and procure turbines more promptly.

Musk also mentioned that the upcoming test flight of the Starship rocket, scheduled for November, aims to recover both the first-stage booster and the second stage. Recovering both parts would mark a “significant technological achievement,” Musk added, but the real milestone will be the reflight of both stages.

Additionally, SpaceX experienced an increase in subscribers to its Starlink space internet service, reaching 13.6 million users, with Musk anticipating that the rise of AI agents will lead to greater demand for connectivity.

Despite the capital outlays, the substantial revenue increase was sufficient to return the company to profitability. SpaceX reported a net income of $4.4 billion, a turnaround from the $1 billion loss recorded in the same quarter last year. However, it still needs to make up some ground to remain profitable for the year, as its net income loss for the first nine months stands at $413 million.

Musk expressed an especially optimistic outlook for the company’s Super Intelligence segment, forecasting annual recurring revenue by the end of 2027 to be “somewhere between $500 billion and $1 trillion.”

More specifically, Johnsen predicted total revenue for the first quarter of 2027 to range from $33 billion to $37 billion.

This is a developing story. TechCrunch will provide updates.