SpaceX is significantly scaling its AI infrastructure, targeting 13 gigawatts of computing capacity by late 2027 to meet surging demand. The company plans to invest approximately $350 billion in this expansion, with quarterly capital spending expected to reach up to $40 billion. This strategic shift aims to position the company as a key player in AI cloud services while it continues to grow its satellite connectivity and orbital flight operations.
SpaceX has announced an aggressive strategy to expand its artificial intelligence infrastructure, aiming to reach 13 gigawatts of computing capacity by the end of 2027. This target marks a substantial increase from previous internal forecasts of 2.5 to 3 gigawatts. The decision follows a sharp rise in demand for computing power from major technology firms, prompting the company to accelerate its build-out plans.
To achieve this massive expansion, the company expects to deploy approximately $350 billion in capital spending over the coming years. Financial guidance indicates that spending is set to climb rapidly, with an estimated $35 billion to $40 billion allocated for the final quarter of 2026 alone. While this requires a significant outflow of cash, the company projects that these investments could generate substantial steady income, potentially reaching between $500 billion and $1 trillion in annual recurring revenue by the end of 2027, driven by the rental of its computing capacity.
The company’s AI cloud services segment is already showing strong growth. Recent quarterly revenue for this division increased to $7.6 billion, up from $2.6 billion in the previous period. Profitability in this segment also rose, with earnings before interest, taxes, depreciation, and amortization reaching $5 billion. Outside of the AI infrastructure space, the company continues to see gains in its satellite connectivity business, which reported a 70% year-on-year revenue increase. The successful completion of the revenue-generating Starship Flight 14 mission remains a key milestone in the company’s broader operational progress.
Investors and observers are monitoring this transition as SpaceX moves to balance its internal AI needs with the commercial leasing of its computing power. The massive scale of the spending plan presents significant execution and financial risks, particularly regarding capital management and infrastructure deployment. The company’s ability to meet these ambitious targets will depend on sustained demand for high-end computing and the consistent performance of its launch vehicle programs. The next important update to track will be the progress on the actual commissioning of this capacity and whether the projected revenue growth materializes as planned.