SpaceX’s AI Spending Rattles Investors & Influencers Blasted for Attending OpenAI’s Summer Camp

Here is a summary of the Morning Brew Daily episode for August 5th.

SpaceX reported its first-ever quarterly earnings as a public company yesterday, and the numbers revealed a company spending aggressively on AI infrastructure while betting its future on Starlink. The report dominated the episode, but it was joined by a range of other stories: a worsening drought crisis in Europe, a backlash against OpenAI’s influencer retreat, and the surprising decline of the alt-milk boom.

SpaceX’s First Earnings Report: AI Spending Rattles Investors

SpaceX’s Q2 revenue came in at $7.8 billion, exceeding Wall Street expectations by more than a billion. But the cost to generate that revenue was steep: $18.4 billion in capital expenditures, driven largely by its AI data center expansion. The company is spending more than twice what it makes in quarterly revenue. Elon Musk told investors he expects SpaceX to reach $1 trillion in annual revenue by 2030, a timeline he has moved up by a year. The company’s finance head added that the annualized run rate should hit $100 billion by the end of this year.