AI news · SpaceX · Tesla
SpaceX’s AI revenue jumps ninefold as Tesla merger talks begin
Renting data-centre space to other AI labs lifted SpaceX’s AI sales to $7.56 billion in a quarter, and Elon Musk says committees at both firms are weighing a deal.
SpaceX’s AI business brought in $7.56 billion in the third quarter, almost ten times the figure a year earlier, the company reported on Tuesday 20 October 2026. Renting out data-centre capacity earned most of it, with Reflection AI, Google and Anthropic among the tenants, Reuters reports. Its own Grok models contributed less.
Total revenue rose 161 per cent to $14.58 billion. The company made a $4.4 billion profit. Capital spending, the money that goes on buildings and machines, nearly tripled to $19.6 billion, and the finance chief expects $35 billion to $40 billion in the fourth quarter, Reuters reports.
On the same call, Elon Musk said Tesla and SpaceX have formed special committees of independent directors to discuss a merger. He leads both companies, so he says he stays out of the talks. Nothing is agreed, The Verge reports. Musk said a deal would need approval from half of all Tesla shareholders, counting those who do not vote. Musk called a merger “a good idea, but it’s really up to the special committees”.
The two already share Terafab, a chip factory project, and Musk wants Tesla’s Optimus robots to use Grok, Gizmodo notes.
The quarter makes rented AI computing the main driver of SpaceX’s growth.
Sources
- CNA (Reuters): Musk says SpaceX-Tesla merger is ‘a good idea’ as companies form deal committees. Checked
- The Verge: Tesla and SpaceX are discussing a possible merger, Musk says. Checked
- Gizmodo: SpaceX and Tesla have officially begun merger discussions. Checked
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