This article first appeared on GuruFocus.

SpaceX (NASDAQ:SPCX) shares climbed 5% on Wednesday after CEO Elon Musk outlined plans for artificial intelligence to become a much larger part of the company's business.

Musk said AI-related revenue could overtake the combined contribution from SpaceX's other operations as soon as September. He also indicated that the business could account for about 99% of SpaceX's valuation within five years, while projecting AI revenue of as much as $500 billion annually.

SpaceX is also expanding computing infrastructure. Musk said the company aims to increase its AI capacity tenfold by the end of 2027, targeting 10 gigawatts of computing power. SpaceX has already developed gigawatt-scale AI training infrastructure, according to its June prospectus.

Starlink remains another major focus, with Musk saying the satellite network could eventually carry more than 90% of global internet traffic. SpaceX had about 10.3 million Starlink subscribers in 2026, according to its prospectus.

SPCX has gained in recent sessions as investors assess its expanding AI strategy, although the company faces substantial spending requirements as it builds additional computing capacity.