TLDRSpaceX secures $20.8B in AI cloud contracts, driving rapid business expansionSPCX jumps 11.6% as AI cloud agreements reach a combined $20.8 billionSpaceX triples AI revenue while expanding cloud infrastructure investmentsStarlink remains profitable as SpaceX accelerates its AI cloud strategySpaceX boosts AI compute business with massive contracts and capital spendingSpaceX (SPCX) climbed 11.60% to $128.26 after posting strong gains during the trading session. The company expanded its artificial intelligence cloud business with $20.8 billion in new contracted cloud services. Meanwhile, the stock traded below the $130 level after holding most of its intraday advance.Space Exploration Technologies Corp., SPCXSpaceX Accelerates AI Cloud Expansion With New Service AgreementsSpaceX reported $14.1 billion in Cloud Services Agreements during the second quarter. The total exceeded the company’s quarterly revenue of $7.8 billion by a wide margin. The company secured another $6.7 billion in cloud service contracts early in the current quarter.The combined contract value reached $20.8 billion across both reporting periods. However, the company classifies these agreements as contracted sales instead of recognized revenue. SpaceX will record the revenue over each contract’s non-cancellable period.The artificial intelligence segment recorded revenue of $2.6 billion during the quarter. That figure increased 247% from the same period last year. AI solutions and infrastructure revenue rose to $2.2 billion from $311 million one year earlier.AI Infrastructure Spending Supports Long-Term Cloud CapacitySpaceX stated that new cloud agreements added $1.6 billion in incremental infrastructure revenue during the quarter. The AI segment generated $818 million in the previous quarter before contract activity accelerated. Quarterly AI revenue more than tripled on a sequential basis.The company continued expanding computing capacity through significant infrastructure spending. Capital expenditures for the AI segment reached $15.8 billion during the quarter. That amount increased from $7.7 billion in the previous quarter and $749 million a year earlier.Despite higher revenue, the AI segment posted a $1.3 billion operating loss. The operating loss declined significantly from the previous quarter. Adjusted EBITDA also turned positive at $1.1 billion during the reporting period.Starlink Remains Profitable as SpaceX Expands Computing BusinessSpaceX 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 company strengthened its financial position while expanding cloud infrastructure.The Starlink connectivity business remained the company’s profitable operating segment. Revenue from connectivity services reached $4.3 billion, representing a 66% annual increase.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. The project aims to deliver data-center-class computing capabilities in orbit. The company continued positioning artificial intelligence infrastructure alongside its established space and satellite operations.The post SpaceX (SPCX) Stock: Expands AI Cloud Business With $20.8 Billion in New Contracts appeared first on Blockonomi.