• SpaceX's earnings reveal growing capex as well as AI revenue that surpassed its Starlink business for the first time.
• The company reported overall capex spending in line with estimates. It projected it could double in the current quarter.
• AI-related spending was slightly less than expected but still more than previous quarters.

SpaceX's second-ever earnings report revealed it's spending more than ever on AI — and that could soon double.

SpaceX reported spending $16.4 billion on AI-related capex in the third quarter, continuing the acceleration of AI spending seen in recent quarters.

SpaceX spent roughly $19.6 billion on overall capital expenditures in the third quarter as Grok maker continues its AI buildout. That was squarely in line with what Wall Street analysts were expecting.

Of that $19.6 billion, SpaceX reported spending $16.4 billion on AI-related capex. Analysts were expecting $16.9 billion.

SpaceX expects capex to balloon in the current quarter, with CFO Bret Johnsen forecasting $35-$40 billion due to new compute coming online. Johnsen also said SpaceX expects to quickly see returns on its investments.

"At current pricing, new compute deployments are generating a payback of less than a year," he said.

SpaceX's stock was trading up 4% after hours following the results. The company is broadcasting the earnings call on X, becoming one of a small list of companies to broadcast video of the gathering.

During the earnings call, SpaceX CEO Elon Musk said that chips are no longer the biggest constraint to AI buildout.

"So talking about SpaceX superintelligence, SpaceXSI — "sexy," whatever — so as I think people are starting to realize the constraints on deployment of superintelligence is more in power and cooling and infrastructure than it is in chips," he said.

SpaceX's AI revenue grew significantly quarter-over-quarter to $7.6 billion — ahead of analysts' estimates of $6.3 billion. This report also marks the first quarter since SpaceX purchased Cursor.

That revenue means that SpaceX's AI segment officially brought in more revenue than its Starlink business. Starlink brought in $5.2 billion for the quarter.

SpaceXAI has since rebranded as SpaceXSI, following Musk's alignment with President Donald Trump's preferred rebranding of "artificial intelligence" to "super intelligence."

One area where SpaceXSI has found some success is leasing its compute to Anthropic, Google, and Reflection AI. During the company's last earnings call, SpaceX CFO Bret Johnsen said the leasing arrangements had generated $1.6 billion in additional revenue.

Musk said that SpaceX is being inundated with lease requests.

"We are also frankly hounded relentlessly by every hyperscaler and by dozens of smaller companies to rent more of our compute," he said. "So we could rent out our compute several times over if we said yes to everyone."

Overall, he said the allocation for SpaceX compute is something "that's going to change from one month to the next."

"I guess as a rough approximation, our goal is to kind of split it 50/50 more or less, where half of the compute is used internally, and half of it is rented to others," he said. "But that number could shift 60/40 one way or the other."

Correction: Tuesday, October 20, 2026 — An earlier version of this story incorrectly included two values for SpaceX's overall capex. The correct value is $19.6 billion.

• United CEO Scott Kirby says he's all for a nationwide wealth tax.
• Kirby said wealth inequality "has become a danger to our society."
• While Kirby doesn't want a state-by-state approach, California voters will soon vote on a proposed billionaire tax.

United CEO Scott Kirby says "wealth inequality has become a danger to our society."

That's why Kirby said he supports a nationwide wealth tax.

"We should have a national wealth tax — it won't work by state because people will just move," Kirby recently told The New York Times.

Kirby, who lives in the Chicago area near United's headquarters, was one of the highest-paid CEOs of a public company in 2025, according to Crain's Chicago Business. Kirby's 2025 total compensation was valued at over $32 million, according to United's filing with the Securities and Exchange Commission.

Wealth taxes are facing one of their biggest tests yet this November. Californians will vote on what, if approved, would become the world's first billionaire tax.

The fight is pitting some of the state's wealthiest individuals against the proposal. Google cofounder Sergey Brin alone has donated $102 million to a group seeking to undercut the proposed wealth tax by proposing competing initiatives that could effectively cancel it out.

In addition to a wealth tax, Kirby also said that inheritance taxes should be increased.

"We should have inheritance taxes that get close to 100 percent at some level," he said. "I would pay them."

Kirby's views may seem unusual among corporate leaders, but others are at least open to the idea of wealth taxes.

Nvidia CEO Jensen Huang recently reiterated his willingness to pay potentially billions of dollars if California's wealth tax goes into effect.

"I don't mind paying taxes," Huang said. "The more you make, the more taxes you pay, so I'm OK with it."

Huang, who famously got his start working at Denny's, said he worries about other things. Bloomberg estimates that the Nvidia CEO is now worth $180 billion, making him the ninth richest person in the world.

"The fact that I can afford to pay $8 billion in taxes over five years is a privilege," he said. "I'm not afraid of paying taxes. I'm just afraid of being poor."

• Saudi Arabia is postponing the "Future Investment Initiative" conference, which was set for later this month.
• The announcement came as fighting has renewed between Iran-backed Houthi rebels and Saudi Arabia.
• The conference, which was set to return Wall Street titans to Riyadh, will now take place next year.

Saudi Arabia has postponed a gathering of Wall Street titans as instability spreads across the Middle East amid the US-Iran War.

On Monday, Princess Maha Bint Mishari Al Saud announced that officials were postponing the Future Investment Initiative, which was scheduled for October 26 through the 29th until next year.

"This decision comes from a deep commitment to our partners, members, speakers, and delegates," Princess Maha said in a statement. "Because this is our landmark tenth edition, we want to ensure it delivers the full scale, extraordinary quality, and unforgettable impact that our community has come to expect and truly deserves."

The postponement comes after a recent attack by Iran-backed Houthi rebels on Riyadh's King Khalid International Airport, which left at least 13 people dead, the Associated Press reported. Before the announcement, CNBC reported that some delegates were prepared to land in Bahrain and then drive around five hours to Riyadh.

The conference, which has become a major gathering since its launch in 2017, was set to feature the likes of Goldman Sachs CEO David Solomon, JPMorgan Chase CEO Jamie Dimon, and BlackRock CEO Larry Fink.

"We will announce the new 2027 dates very soon," the statement said.

Houthi rebels have attacked Saudi Arabia in recent weeks as an informal 2022 truce between the two sides deteriorated amid the US-Iran War. In 2015, Saudi Arabia began a bombing campaign against the rebels after they seized Sanaa, Yemen's capital.

• Prosecutors say an ex-OpenAI employee accused of planting a recording device appears to have received support from the Saudi government.
• A federal magistrate judge ruled on Monday that Abdulrahman Alfozan should remain in custody.
• Prosecutors said that Alfozan frequently communicated with a member of the Saudi Royal Family.

Federal prosecutors say that a former OpenAI employee accused of planting a recording device received "what appears to be considerable support from" the Saudi government.

Prosecutors made the disclosure in a motion to keep Abdulrahman Alfozan, a Saudi national and former OpenAI employee, in custody pending trial. US Magistrate Judge Alex G. Tse ruled on Monday that Alfozan should remain in custody.

Alfozan had been in contact as recently as October 5 with an unnamed member of the Saudi Royal Family, whom he frequently communicated with on WhatsApp over the last two years, prosecutors said.

"In May 2026, the individual told the defendant, 'Saudi needs you more then [sic] the US!' to which the defendant responded '100,"' indicating he agreed," prosecutors wrote.

The FBI arrested Alfozan on October 9. According to a criminal complaint, Alfozan planted a recording device in the back of a TV in an OpenAI conference room where sensitive discussions take place. OpenAI's security cameras caught Alfozan near the conference room on multiple occasions, despite his lack of authorization to the high-level meetings held there, prosecutors said.

"In the days surrounding the time period that the device was installed, OpenAI executives met with government officials in that very room," prosecutors wrote in a filing on Sunday. "Defendant's conduct could pose a danger to the national security of the United States."

The complaint included a photo of what prosecutors said was Alfozan peering behind the TV where the recording device was found.

In addition to his WhatsApp messaging, prosecutors wrote that an unnamed member of the Saudi military booked a flight for Alfozan's wife and son on October 11, despite an existing reservation for an October 12 flight, which prosecutors said was "paid for by the Saudi government."

Prosecutors also disclosed more information about Alfozan's alleged efforts to plant the device. According to the filing, Alfozan's iPhone had photos of "what appear to be the input/output panels on televisions and other electronic devices in various locations in OpenAI buildings."

Those locations, prosecutors wrote, included "another conference room where sensitive meetings frequently occurred."

Other files on the phone, including a note modified as recently as September 13, listed "Riyadh tasks" like "finding an apartment and a job for the defendant's wife, as well as obtaining an ID and a Saudi passport for his son," the filing said.

Another note titled "OpenAI leave" suggested that Alfozan "was planning an '[e]arly … pick up' of the devices he had installed or intended to install and then extending his planned parental 'leave to full.,'" prosecutors wrote.

As part of their reasons for requesting that the former OpenAI engineer remain in custody, prosecutors wrote that Alfozan's wife and son left the US without him and are now in Saudi Arabia. The filing also said "both of his parents and all (or all but one) of his siblings" are in Saudi Arabia.

In a separate filing, William Pernik, Alfozan's attorney, said that the former OpenAI engineer did not pose a flight risk.

"Mr. Alfozan was made aware of OpenAI finding the device per its own filings and OpenAI's public statements, approximately eight to ten days before he was arrested," Pernik wrote. "If his intention was to flee, he would have done so at that time."

Pernik said that prosecutors' previous disclosure that Alfozan had purchased a one-way ticket to Saudi Arabia lacked context.

"Seventy percent of the airline bookings in his email since January 2021 (96 of 138) were one-way tickets," Pernik wrote.

• President Donald Trump said he told Katie Zacharia to reconsider the White House press secretary job.
• Shortly after, a White House official said she is "transitioning out" of the role.
• She lasted five days in the role after mounting scrutiny over her legal credentials.

Embattled White House press secretary Katie Zacharia is out of the job after just five days, making her the shortest-tenured person to hold the role in history.

President Donald Trump said on Friday that he told Zacharia to reconsider taking on the high-profile job.

Shortly after his statements, The New York Times and CNN reported that Zacharia had been fired after less than a week in the role. A White House official told Business Insider that she is "transitioning out" of the role.

"I said to Katie just two minutes ago, I said, 'Katie, you know, you don't have to do this if you don't want,'" Trump told reporters at the White House, adding that Zacharia responded that the job is "a lot tougher" than she thought.

"I said to her, 'Honestly, if I were you, I'd reconsider. You think about it, but I would reconsider,'" Trump said.

A conservative commentator who has repeatedly described herself as a lawyer, Zacharia made her White House press briefing debut on Tuesday and quickly came under intense scrutiny over her legal credentials.

She was widely panned after the roughly 14-minute briefing, most of which was spent on reading from prepared remarks. After the briefing, while alongside Trump, Zacharia was asked which state she passed the bar exam in and replied, "When I moved to China," raising eyebrows.

National headlines soon followed reports that Zacharia had not been licensed to practice law in any US jurisdiction.

On Thursday, Zacharia said she took the bar exam but failed, and never retook it.

Trump told reporters on Friday that Zacharia had been treated "very badly" and "very unfairly" by the media.

"She's been treated very rough, and she's a nice person, very nice person," the president said. "I've watched her for years on television, but I said, 'Is this for you, Katie? Because, honestly, you don't need this.'"

"She's been treated, I would say, very nastily," he said.

A rocky start

Following her first briefing, CNN reported that "several White House officials" were questioning how long she could remain in the role.

The news of Zacharia's ouster means Trump will be searching for a top spokesperson again after Karoline Leavitt left the role in August.

Previously, Jonathan Daniels held the record for shortest tenure. Daniels served as White House press secretary for just 19 days before President Franklin D. Roosevelt died in office. (He briefly served in an interim capacity for President Harry Truman.)

In the modern era, press secretaries have historically served roughly a year in the role, a fact that CNN noted when Trump's first-ever White House press secretary, Sean Spicer, departed after 182 days in August 2017.

During the first Trump administration, Anthony Scaramucci famously spent just 11 days as the White House communications director before he was booted from the position.

Scaramucci, known as "The Mooch," weighed in on Zacharia's departure in an X post, writing, "Records are made to be broken. But I take no pleasure in other people's pain."

Before becoming press secretary, Zacharia worked for Trump Media, the parent company of Truth Social, and served a brief stint at the Department of Homeland Security.

Compared to her predecessors, her résumé was void of the campaign and Capitol Hill experience that previous White House press secretaries brought to the challenging role.