SPCX Q2: Majority of the world’s internet. Eighteen billion CapEx.

First public print. Revenue nearly doubles. CapEx goes nuclear on AI. Musk still talks like civilization is a bar chart, and Starlink owning most of the world’s internet in “less than 10 years.”

Transcript

SPEAKER_00 0:00

Welcome to Quarters. Public Earnings calls only the human part. I'm Terry. SpaceX, Elon Musk, August 4th, first print as a public company. He doesn't open with CapEx. He goes straight for the biggest claim on the call.

SPEAKER_01 0:15

Like it's not out of the question that at some point uh Starlink will deliver a majority of the world's internet. At least in countries where we're allowed to operate, which is the vast majority of countries. Um, so this is uh you know important to bear in mind. And it's not in like the infinity future, it's uh you know less than 10 years. Um so um and and uh with with the advent of AI um and humanoid robotics and you know vehicle robotics and just a massive number of robots, the appetite for bandwidth will be much greater than it has been in the past.

SPEAKER_00 0:56

Majority of the world's internet, less than 10 years. I don't know. That's the that's the open, ugly scoreboard, real quick. 7.8 billion revenue, up 92%, lost 541 million, better than last year. CapEx about 18.4 billion, most of it AI, cash after the IPO around 100 billion. After hours, the stock got hit. Wall Street heard CapEx. Fine, we're here for what he said.

SPEAKER_01 1:23

So I mean right now we deliver, call it roughly 2,500 tons a year to orbit via Falcon. And uh this is a this is a big number by normal standards. The rest of the world, I think, delivers around uh 300 tons. Uh so we deliver you know 80 to 90 percent of total Earth mass to orbit per year with with Falcon. Now with with Starship, um our aspirations, and I think we will achieve these aspirations, are to deliver uh well over a million tons to orbit per year, and probably ultimately uh 10 million tons per year. So this is this is not like if you had a chart where you plotted things, uh you would need a very, very big table to put the chart on to see uh to even see any of our competitors on that chart and to make that say our next biggest competitor was one pixel high on the bar chart, you would still need a very big bar chart to represent uh the SpaceX Starship vehicle.

SPEAKER_00 2:37

Competitors are one pixel on his chart. He's fine with that.

SPEAKER_01 2:41

We are building and deploying compute uh I think faster, or our rate of growth certainly is faster than any anyone else. And our efficiency of compute deployment, I think, is also the highest. Um so we we we expect to end this year with over two gigawatts of compute. Um and uh probably our cumulative compute online by the end of next year uh will be several times higher. Um so it it you know it may uh let's say be closer to 10 gigawatts of compute than five gigawatts of compute as a way to think about it. Um and going forward, we've decided to build exclusively on NVIDIA uh because we think the uh the the Barubin architecture is is the best architecture, we think it's the best AI computer, and um, and we greatly value our close uh cooperation and and partnership on many levels uh with NVIDIA. So we're uh we're exclusive to NVIDIA.

SPEAKER_00 3:49

Two gigawatts this year, maybe 10 next, exclusive NVIDIA. They're spending like a hyperscaler that also launches rockets. The 18.4 is Brett's number. The ambition is Elon's QA. Someone presses the 100 billion ARR line. He doesn't blink.

SPEAKER_01 4:06

Like to be clear, the the 100 billion ARR in December is not a question mark. That's that's what we'd achieve if we basically did nothing. So um, like, you know, so it it I think it may be higher than that. It probably will be higher than that.

SPEAKER_00 4:21

Not a question mark, floor not ceiling. The guide is the boring case, box score, line of the quarter, majority of the world's internet, less than 10 years, first public call, date attached, quirk, one pixel, next to 18 billion in capex. The joke has a receipt, thing that means something. Starlink pays the bills, AI is where the money's going, capex stays hot, new cloud deals under a year payback, they say. Whether you believe the ARR floor, that's the fight after hours. Human ending. Same Elon. Civilization talk, broken y-axis, grok, NVIDIA, now with a ticker, fully committed to outscaling everyone. Or the CapEx is the show, and the internet line makes it sound inevitable. Either way, he still won't do a normal CEO call. If you like this, please subscribe to Quarters. No stock tips, just the human part. See you next print.