Elon Musk's SpaceX revealed its first earnings call since going public with a record-setting IPO in June.
The company is touting a 92% increase in revenue in the second quarter at $7.8 billion compared to $4.1 billion the second quarter of 2025.
SpaceX Chief Financial Officer Bret Johnsen highlighted the company's artificial intelligence compute agreements as a major source of this revenue jump.
"Revenue growth accelerated across all our business segments and we delivered strong operating leverage, with significant margin expansion led by our new AI compute agreements. Our unparalleled leadership in launch, Starlink subscriber growth, new enterprise and government partnerships, and best-in-class AI infrastructure underscore our ability to drive
meaningful scale and deliver attractive returns," Johnsen said in a statement.
AI lease agreements in Memphis leads to billions for SpaceX
In February, SpaceX merged with Musk's artificial intelligence company, xAI. The company has since rebranded as SpaceXAI. Ahead of SpaceX's IPO, the company entered into lease agreements with Anthropic worth $1.25 billion per month for compute at its Colossus and Colossus 2 data centers.
Additionally, SpaceX has leased computing capacity to Google and Reflective AI.
Johnsen said the incremental leasing of compute capacity helped contribute $1.6 billion in revenue for the company.
In just the artificial intelligence sector, SpaceX had $3.7 billion in expenses and $3.3 billion in revenue as of June 30. Those figures are up significantly compared to $2.46 billion in expenses and $1.4 billion in revenue at the end of the second quarter of 2025, according to the earnings report.
Both data centers are located in Shelby County, with Colossus at 3231 Paul R. Lowry Road in South Memphis and Colossus 2 at 5420 Tulane Road in Memphis' Whitehaven neighborhood. Colossus 2 is also being powered by a nearby SpaceXAI power plant in Southaven, Mississippi. The company also has plans for two more data centers: Macrohardrr at 2400 Stateline Road in Southaven and Minihard at 5414 Tulane Road in Memphis.
"We are building AI compute at scale, faster than anyone," Musk said on the earnings call. He added SpaceXAI will use Nvidia graphic processing units (GPUs) exclusively.
According to the second-quarter earnings report, SpaceXAI has 1.4 gigawatts of compute capacity (up from 1 gigawatt in March 2026). The company's artificial intelligence chatbot, Grok, also just released its most up-to-date version, Grok 4.5, on July 16. Musk said he expects the next iteration, Grok 4.6, to roll out next week and Grok 5 by the end of the year.
Additionally, Musk said SpaceXAI compute capacity will reach 2 gigawatts by the end of the year, with expectations of compute capacity increasing "several times higher" next year. Musk said by the end of 2027, compute capacity could be 10 gigawatts.
That figure will be significantly higher when factoring in the company's power and cooling needs.
"We're looking to far exceed that number in power online," Musk said.
During the call, Musk elaborated that the company is aiming for 20 gigawatts in energy needs at the Memphis and Southaven data centers. Musk said the company is looking to hit that figure by end of next year. For context, 20 gigawatts would be enough electricity to power over 15 million households.
Based on the company's current infrastructure, compute capacity will come directly from the Memphis and Southaven data centers. Musk said 15 gigawatts will come from "the power plant." Currently, SpaceXAI's power plant is the former Duke Energy site at 2875 Stanton Road in Southaven.
"As a newly public company, we are delighted to welcome our broad base of shareholders and bondholders. We endedthe second quarter with $100 billion of cash, cash equivalents, and marketable securities, and $47.5 billion in backlog.This financial strength gives us substantial capacity to invest in Starship, Starlink Broadband and Mobile satellites, andour AI platform, while maintaining a disciplined long-term capital allocation framework," Johnsen said in a statement.
Neil Strebig is a journalist with The Commercial Appeal. He can be reached at neil.strebig@commercialappeal.com, 901-426-0679
This article originally appeared on Memphis Commercial Appeal: SpaceX Q2 earnings skyrocket due to Memphis data centers, 20GW expected
