SpaceX stock sinks after first ever earnings revealed big AI spending plans

SpaceX touted faster-than-expected returns from its AI spending on its first-ever earnings call as a public company. But investors remained concerned about how long its profitable Starlink business could continue to bankroll costly investments in data centers and Nvidia chips.The company’s shares fell about 10 per cent to US$113 at the opening of trading on Wednesday, dropping well below their $135 IPO price in less than two months since the company’s blockbuster debut.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. Story continues below advertisement “The current economics have translated into a less than one-year payback on our new capital deployments for compute,” Johnsen said, adding that SpaceX had signed another $6.7 billion in cloud computing contracts since the end of the second quarter and was on track to reach a $100 billion annualized revenue run rate by the end of the year.Th...