Deutsche Bank Forecasts AI Computing Services to Drive Majority of SpaceX Fourth-Quarter Revenue
A recent Deutsche Bank research report suggests that SpaceX's 'neocloud' business—renting AI computing power via its Colossus 2 data center—could account for more than half of the company's fourth-quarter revenue. Major clients such as Google and Reflection AI are reportedly utilizing these services, with contract rates for high-end Nvidia GB300 chips reaching up to $13.90 per GPU hour. Following comments from Elon Musk at the Baron Investment Conference, analysts have raised revenue forecasts significantly. Deutsche Bank analyst Edison Yu increased his Q4 revenue estimate to $24.5 billion and projects an annual revenue run rate of approximately $104 billion by the end of 2026. The report also notes potential market volatility regarding contract pricing due to 90-day termination clauses that allow SpaceX to reprice deals or reclaim capacity for internal use.