SpaceX had its first earnings call and said its AI spending is paying off faster than expected.

But investors are worried about how long the company's Starlink business can pay for expensive investments in data centers and computer chips.

The company's stock price fell about 10% to $113 on Wednesday, which is lower than its initial public offering price of $135.

SpaceX said its AI revenue is more than three times higher than last year and it has new cloud computing deals.

The company spent $15.8 billion on AI.

The Chief Financial Officer said the investments are paying off quickly, but AI spending will remain high.

The company has signed $6.7 billion in new cloud computing contracts and expects to reach $100 billion in annual revenue by the end of the year. It had a less than one-year payback on its new capital deployments for compute.

This is different from traditional data center investments, which take years to pay off.

One expert believes the company's numbers are aggressive but possible if everything goes as planned. The numbers are not unrealistic, and the pieces are in place.

The comments after the earnings call changed the way people are talking about investing in SpaceX.

Before, people thought Starlink's cash flow was the main way the company would pay for its AI plans. Now, the company says its AI infrastructure is making enough money to pay for itself.

The company spent $18.4 billion on capital expenditures in the quarter, which is a lot of money. It is still losing money because it is investing so much in AI infrastructure.

SpaceX's AI business made $2.6 billion in revenue in the second quarter, which is more than three times higher than last year.

The company is not slowing down its spending. It will keep investing in AI compute capacity, Starship production, and new Starlink satellites.

One expert said new compute capital is paying off quickly, like the cost of goods rather than a big expense.

SpaceX executives said demand for AI computing is higher than supply, and they expect to have more than two gigawatts of compute capacity by the end of the year.

One expert said the company's spending and revenue are not sustainable, so something has to change. Either spending has to decrease or revenue has to increase a lot.

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