SpaceX (SPCX) shares climbed 11.60% to $128.26 during the trading session, holding most of their intraday advance while trading below the $130 level. The rally followed the company's announcement that it secured $20.8 billion in new artificial intelligence cloud service contracts.

AI Cloud Contracts Accelerate

SpaceX reported $14.1 billion in Cloud Services Agreements during the second quarter, a figure that far exceeded the company's quarterly revenue of $7.8 billion. The company subsequently secured an additional $6.7 billion in cloud service contracts early in the current quarter, bringing the combined contract value to $20.8 billion across both reporting periods.

SpaceX classifies these agreements as contracted sales rather than recognized revenue. The company will record the revenue over each contract's non-cancellable period. This backlog structure means the $20.8 billion represents committed future revenue that will convert over time, a metric investors will likely track alongside actual recognition rates in coming quarters.

The artificial intelligence segment generated $2.6 billion in revenue during the quarter, representing a 247% increase from the same period a year earlier. AI solutions and infrastructure revenue rose to $2.2 billion, up from $311 million one year prior. The growth rate reflects broader demand across the AI infrastructure market, where major cloud providers have been rapidly scaling capacity to meet enterprise and model-training workloads.

Infrastructure Investment and Segment Performance

New cloud agreements added $1.6 billion in incremental infrastructure revenue during the quarter. The AI segment had generated $818 million in the previous quarter before contract activity accelerated, meaning quarterly AI revenue more than tripled on a sequential basis.

Capital expenditures for the AI segment reached $15.8 billion during the quarter, up from $7.7 billion in the previous quarter and $749 million a year earlier. The ramp puts SpaceX's AI capex trajectory in line with the broader industry pattern of front-loaded infrastructure spending as providers build out GPU capacity and data center footprint. Despite the higher revenue, the AI segment posted a $1.3 billion operating loss, though that loss declined significantly from the prior quarter. Adjusted EBITDA for the segment turned positive at $1.1 billion during the reporting period.

Starlink and Financial Position

SpaceX ended the quarter with $100 billion in cash and marketable securities. The balance included proceeds from its public offering and a $25 billion bond sale completed in June.

The Starlink connectivity business remained the company's profitable operating segment. Revenue from connectivity services reached $4.3 billion, a 66% year-over-year increase, while the segment generated $1.7 billion in operating income during the quarter.

SpaceX also announced a partnership with Nvidia to develop the Starmind AI1 satellite compute payload, which aims to deliver data-center-class computing capabilities in orbit. The initiative positions artificial intelligence infrastructure alongside the company's established space and satellite operations, leveraging its existing Starlink constellation footprint as a distribution layer for orbital compute services.