Investors want SpaceX (SPCX) to show that it can grow fast enough to justify its price, and a new deal gives the clearest proof so far.
At the Goldman Sachs Communacopia and Technology Conference, Chief Financial Officer Bret Johnsen said SpaceX closed an artificial intelligence hosting deal worth about $1.11 billion a month. Billing starts Dec. 1, 2026, and the agreement adds roughly $13.3 billion in yearly revenue.
For investors, this win points to a faster, higher-margin path for SpaceX to make money and support its near-$2 trillion valuation.
What SpaceX signed, and how the company makes money
SpaceX builds and launches rockets. It also runs the Starlink satellite internet service that brings in most of its sales, and now rents out AI computing power from large data centers.
Johnsen said the deal gave SpaceX’s management more conviction about reaching a $100 billion annual recurring revenue target by the end of 2026, Benzinga reported. Annual recurring revenue is the yearly income a company expects from contracts already in place.
SpaceX did not name the customer. This is the company’s fourth major AI hosting deal in recent months. It comes alongside an agreement with Anthropic worth about $1.25 billion a month and one with Google (GOOG) worth roughly $920 million a month, Investing.com reported.
Together, these deals turn scarce data-center capacity into steady monthly revenue.
How the new AI deal changes SpaceX’s revenue outlook
In the second quarter, SpaceX was making sales at an annual pace of about $31 billion. Johnsen now says the company can reach $100 billion in annual recurring revenue by year-end, and this contract is a big step toward fulfilling that goal.
SpaceX rents its data-center capacity for about $30 to $50 for each watt of power, and its management says some of these projects pay for themselves in under a year, Yahoo Finance reported.
Elon Musk has said that with 10 gigawatts of AI computing power, that rate could bring in $300 billion to $500 billion a year. SpaceX plans to grow its ground-based capacity from an expected 2 gigawatts by the end of 2026 to between 5 and 10 gigawatts in 2027.
Why Starship’s next flight starts bringing in money
The second reason for hope is Starship, the giant rocket SpaceX has invested more than $15 billion to develop. That investment has brought in little income so far, and that is changing.
Starship Flight 14, planned for later this month, is set to be the rocket’s first revenue-generating mission, carrying production Version 3 Starlink satellites into orbit.
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“I love the demonstration flights, and now I am excited that we are moving into production cadence,” Johnsen said, according to AviationWeek.
SpaceX wants to launch its first Starmind satellites, which act as small data centers in space, in 2027. Running AI work in orbit gives access to plentiful solar power and easier cooling. Reusable Starship flights would also make it a solid competitor for ground-based data centers.
The risks SpaceX investors still have to consider
Even after the announcement, SPCX stock traded near $151, up only about 2% on the day, which is a small move for a deal this size.
Many of these hosting agreements run for roughly six months with early-exit options, so the revenue is not locked in, and SpaceX still has to expand its capacity quickly to hit its targets.
Analysts also disagree on valuation. Morningstar calls the stock significantly overvalued and holds a fair value estimate of $62, far below today’s price. Scott Galloway, a New York University marketing professor and widely followed commentator, has argued that SPCX could be worth as little as $10 to $30.
Bulls see it differently. Pivotal Research set a year-end 2027 target of $220, and JPMorgan holds a $240 target, both well above today’s price. The sensible next step is to watch whether Flight 14 succeeds, and whether these hosting deals get renewed.
Related: Morgan Stanley doubles down on SpaceX stock for investors
