A seismic shift in SpaceX's business model has unfolded over recent months, with artificial intelligence infrastructure now generating far more revenue than traditional government contracts. Elon Musk disclosed that government work will represent less than 10% of SpaceX's quarterly revenue, a steep decline from 16.6% in the third quarter and roughly one-fifth during 2025.
The company's AI division pulled in $7.56 billion during the third quarter, surpassing even Starlink's contribution to the bottom line. This growth stems primarily from renting computing capacity housed in data centres located in Memphis. Anthropic, the artificial intelligence company, has emerged as SpaceX's single largest customer, responsible for 34.5% of total revenue.
Musk indicated that government revenue's share would dip below 5% within approximately twelve months, according to reporting by Reuters. This represents a fundamental reordering of priorities for a company that once depended on NASA and the Pentagon as its principal sources of funding for launching astronauts and national security satellites.
Yet this concentration of revenue carries considerable exposure. Anthropic retains the ability to terminate its agreements with just 90 days' notice beginning in early 2027. Wall Street analysts have grown increasingly skeptical of businesses whose primary income derives from leasing AI computing infrastructure, Bloomberg reported. Musk himself cautioned last month that few companies pursuing this model will endure without diversifying their revenue streams.
The timing of Musk's announcement comes shortly after Democrats secured control of both chambers of Congress. Musk invested more than $445 million in backing Republican candidates, the majority of whom failed to win their races. This political expenditure may complicate SpaceX's relationship with the incoming Congress, Bloomberg noted. Nevertheless, SpaceX continues to hold a significant NASA contract to deploy astronauts to the lunar surface using Starship, potentially as soon as 2028.
Source: The Next Web
