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• A 10x capacity expansion to 10 gigawatts could generate $300 billion to $500 billion annually, Musk estimated.
• Musk expects Starlink to eventually carry over 90% of global internet traffic and grow to 100,000 satellites.
• Antonio Gracias disclosed 503.4 million SpaceX shares, representing 6.5% of Class A stock, through Valor-related entities.

Shares of SpaceX (SPCX) slipped 1% in overnight trading late Tuesday even as CEO Elon Musk expects AI to generate up to $500 billion annually and account for 99% of the company’s value within five years, while longtime ally Antonio Gracias disclosed a notable stake held through Valor entities.

SPCX stock fell 4% on Tuesday to close at $133.29.

SpaceX AI Revenue Could Eclipse Core Businesses 

In a recently released 29-minute all-hands meeting, Musk said AI could overtake the combined revenue of SpaceX’s rocket, spacecraft and satellite-internet businesses as early as September. “Our AI revenue, not probably, definitely, will exceed all other SpaceX revenue probably in September,” Musk said, adding that it would “significantly exceed” the rest of the company’s revenue in the fourth quarter.

“AI will be 99% the value of SpaceX,” he said. “And the value of SpaceX will be some astronomical number.” Musk called winning in AI the meeting’s “most important message,” saying: “We must win on AI. Because the future is overwhelmingly AI and robots.”

Musk Targets Up To $500B In AI Revenue

Musk said SpaceX has built “the most powerful AI training clusters in the world” and plans to expand its capacity tenfold by the end of next year. The company is targeting 10 gigawatts of AI capacity, which Musk estimated could generate between $300 billion and $500 billion annually.

“If we bring 10 gigawatts of AI online by the end of next year, it will be $300 to $500 billion a year in revenue,” he said. “Big numbers.” Musk expects AI training to remain on Earth while inference, the day-to-day operation of AI models, moves into space. SpaceX’s AI expansion follows its merger with xAI and agreement to acquire Cursor for $60 billion in stock. SpaceXAI also launched Grok Bot on Tuesday, calling it an “AI teammate” that can complete work across apps and inboxes.

Musk said SpaceX would train its AI on the company’s accumulated information, telling employees: “You will effectively be the parents of the AI. It will inherit your thoughts and ideas and beliefs.” He nevertheless acknowledged that humans may eventually lose control of sufficiently advanced systems. “We won’t ultimately be able to control the AI. It will be too smart for that,” Musk said, comparing it with a “super genius child” whose values can still be shaped.

Musk Outlines Massive Starlink Expansion 

Musk also expects Starlink to eventually carry more than 90% of global internet traffic. SpaceX has nearly 11,000 satellites in orbit, more than twice as many as all other operators combined, according to Musk, and plans to expand the network to 100,000 satellites. Starship, meanwhile, could raise annual payload capacity from roughly 2,500 tons to more than 1 million tons and potentially close to 10 million tons, he said.

“These are mind-boggling numbers,” Musk said, calling Starship “arguably the hardest thing that humanity has ever tried to do.”

Major Investors Reveal SpaceX Stakes

A separate filing from Tuesday showed that Gracias owns 503.4 million SpaceX Class A shares, representing 6.5% of the class, through 30 Valor-related entities. No individual Valor entity owns at least 5% of SpaceX, with the filing aggregating their holdings due to Gracias’ positions with the entities or their general partners.

Meanwhile, Norway’s $2.3 trillion sovereign wealth fund separately revealed a 0.05% SpaceX stake valued at $1.22 billion as of June 30.

Morgan Stanley recently reiterated an ‘Overweight’ rating and $300 price target, implying the stock could more than double from current levels. “As investors see more breadcrumbs on the Cursor/Grok story, we see potential for the implied valuation discount on SpaceX’s AI business to lift,” the research firm said, pointing to “potentially substantial appreciation” in the shares.

How Do Retail Traders Feel About SPCX?

On Stocktwits, retail sentiment for SPCX turned ‘extremely bullish’ from ‘bullish’ levels a day ago amid ‘high’ message volume.

One user said, “$SPCX 99% of “bears” just want cheap shares. As a long term bull, i also want cheaper shares. We will just keep adding, brick by brick, building a generational nest egg. Millions of people and funds adding already. Elon will go down as humanity’s top genius. Glad we have people like him on our side.”

Another user said, “SpaceX is positioned to be the next NVIDIA in terms of a titan company with the largest market cap. You laugh at Elon's S-1, but you'll be the one wishing you bought in when it's worth 30T.”

SPCX stock has declined 17% over the past three months. 

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