SpaceX CEO Elon Musk announced on Thursday that Starlink, the satellite internet unit of the rocket company, has achieved cash flow break even. This development comes after Musk stated in 2021 that SpaceX would spin off and take Starlink public once its cash flow became reasonably predictable.
Since 2019, Starlink has rapidly expanded its network in low-Earth orbit to approximately 5,000 satellites. As a result, it has become the largest satellite operator globally, posing as a competitor to established satellite internet companies like Viasat and Eutelsat’s recently acquired OneWeb.
According to Musk, Starlink now comprises the majority of all active satellites and will have launched the majority of all satellites ever sent from Earth by next year. The company’s growing influence and network have drawn attention, particularly for their involvement in providing satellite communications vital to Ukraine’s war efforts against Russia.
In addition to its international presence, Starlink will also support communication links in Gaza. Elon Musk confirmed this commitment last month, indicating that “internationally recognized aid organizations” will benefit from Starlink’s assistance. This initiative comes in response to a telephone and internet blackout that isolated the people of Gaza from the world and each other.
Throughout this expansion, Elon Musk aims to establish Starlink as a primary revenue source to finance SpaceX’s ambitious projects, such as the development of the next-generation Starship. This giant reusable rocket is intended for future flights to the moon in collaboration with NASA.
While Starlink experienced a revenue surge of over six times last year, reaching $1.4 billion, it fell short of Musk’s targets, as reported by the Wall Street Journal. However, despite the financial performance, SpaceX remains highly valued at approximately $150 billion, solidifying its position as one of the most valuable private companies globally.