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SpaceX (SPCX) just inked another big AI compute deal, one that will take the space and rocket company closer to its $100 billion annual recurring revenue (ARR) target this year, a big metric for investors.
At the Goldman Sachs Communacopia & Technology Conference in San Francisco, CFO Bret Johnsen said a new AI compute deal has been reached in which SpaceX leases out compute bandwidth for third-party clients.
"We're on track, or we believe we're on track to hit $100 billion ARR," Johnsen said about SpaceX's overall ARR target, as AI compute deals helped fuel the growth, before revealing the news. "What I would tell you, an update to that is that just earlier this month we closed another hosting deal, and that translates into about $1.11 billion a month starting December 1st of this year, which is another roughly $13 billion of ARR."
Add this to deals already in place, and SpaceX's compute deals are creating a nice revenue stream. Earlier this year, SpaceX announced a compute deal with Anthropic (ANTH.PVT) for $1.25 billion per month ($15 billion ARR) and another deal with Alphabet's (GOOG, GOOGL) Google for $920 million per month ($11.04 billion ARR).