Elon Musk has projected that SpaceX could generate between $500 billion and $1 trillion in annual recurring revenue (ARR) by the end of 2027.
He said the ambitious growth target is driven by artificial intelligence (AI), satellite connectivity, and expanding computing infrastructure.
The projection came during the company’s third-quarter (Q3) 2026 earnings call, where Musk pointed to the rapid expansion of its AI business as a major driver of future revenue.
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The forecast represents a significant shift in SpaceX’s business ambitions, positioning the company not only as a leader in commercial spaceflight but also as a potential major player in the AI computing market.
A key driver behind Musk’s projection is SpaceX’s expanding AI infrastructure business, which provides computing capacity to companies developing and deploying advanced AI systems.
During the earnings call, Musk highlighted the rapid adoption of Grok Bot, an AI product designed to serve individual and enterprise users. He said the company planned to expand its deployment to businesses, allowing them to use AI agents as virtual employees capable of assisting with workplace tasks.
The company’s AI-related business has already recorded significant growth. In the third quarter of 2026, SpaceX reported $7.56 billion in revenue from its superintelligence segment, up from $813 million a year earlier.
The growth was supported by additional computing capacity and the contribution of Cursor, an AI coding company acquired by SpaceX.
Musk’s strategy centres on expanding the computing infrastructure required to train and operate increasingly sophisticated AI systems. As more businesses adopt AI tools, demand for computing power could create a substantial recurring revenue stream for SpaceX.
However, reaching $1 trillion in annual recurring revenue would require this business to expand dramatically beyond its current scale.
Starship could accelerate the company’s expansion
SpaceX’s Starship rocket programme is another part of its longer-term strategy.
The company is developing Starship as a fully reusable launch system designed to carry people, satellites and cargo into space. If its reusability targets are achieved, the system could significantly increase the volume of payloads SpaceX can deploy while reducing the cost of launching them.
During the earnings call, Musk said the company expected Starship to fly weekly during the first half of 2027, with the possibility of increasing the frequency to twice a week or more by the end of the year.
More frequent launches could support the deployment of additional Starlink satellites and the expansion of space-based infrastructure. That capacity would be particularly important if SpaceX intends to serve a much larger global customer base and support its ambitions in AI computing.
However, achieving this schedule depends on technical progress, successful flight testing and the company’s ability to scale production and operations.
SpaceX is also investing heavily to support its ambitions. Capital expenditure reached $19.6 billion in the third quarter, with spending directed towards AI computing infrastructure, Starship development and satellite production. The company expects capital expenditure to rise to between $35 billion and $40 billion in the fourth quarter.
The challenge behind the $1 trillion projection
Although Musk’s forecast reflects confidence in the company’s growth prospects, it remains a management projection rather than a guaranteed financial outcome.
A significant portion of the anticipated growth depends on SpaceX’s ability to bring additional computing capacity online, attract enterprise customers, expand its AI services, and continue growing Starlink.
These businesses also face challenges involving infrastructure costs, competition, technical execution, and customer demand.
For SpaceX, the central question is whether its AI computing and satellite connectivity businesses can scale quickly enough to support Musk’s ambitious target.
The company’s latest results demonstrate substantial growth, but achieving the projected figure would require expansion on an extraordinary scale.