SUCCESS

Elon Musk has spent years selling investors on rockets, satellites and electric cars. His newest pitch is about something far less flashy: warehouses full of servers that other companies are lining up to rent. That shift is now showing up in the numbers, and SpaceX earns more from artificial intelligence than from anything else it does.

For one chipmaker in particular, that is welcome news. Musk used SpaceX’s latest earnings call to clarify which hardware will power the next phase of his AI buildout. It was not a passing mention. The name he kept coming back to was Nvidia.

SpaceX’s AI business takes center stage

SpaceX reported third-quarter revenue of $14.6 billion on Oct. 20, 2026, up 161% from a year earlier, while its AI unit, now called Super Intelligence, grew ninefold to $7.56 billion. Revenue came in well above analysts’ expectations, and shares climbed about 8% in extended trading after the release.

Also read: Bank of America sends SpaceX stock investors strong signal

The quarter also marked a turning point on the bottom line. SpaceX posted $4.4 billion in net income, its first profitable quarter since going public. The AI surge was driven by new cloud agreements, the August purchase of the coding platform Cursor, and growing adoption of Grok.

The AI segment has now outgrown the businesses that made SpaceX famous. Super Intelligence brought in more revenue than Starlink and the rocket business combined, and 84% of the quarter’s capital spending went toward it. Spending still topped revenue, though the gap narrowed. That is a remarkable shift for a company built on reusable rockets.

Wall Street noticed quickly. Bank of America lifted its outlook on the stock on Oct. 22, citing a quarter in which the AI arm posted its first operating profit and surpassed the Starlink connectivity business, TheStreet reported. The bank’s optimism rests on results that beat forecasts across the board.

Renting out computing power is paying off

Much of that growth comes from leasing capacity to other AI developers. Anthropic agreed to pay SpaceX $1.25 billion a month through May 2029 for compute across its Colossus clusters. Either side can exit the deal on 90 days’ notice after an initial period.

Google signed a similar agreement in June, committing to pay $920 million a month from October 2026 through June 2029 for access to roughly 110,000 Nvidia GPUs and related hardware. That is a lot of Nvidia silicon earning rent for SpaceX.

Musk argues SpaceX has a built-in edge in building this capacity. He compared assigning his rocket team to data centers to “the New York Yankees playing in Little League.” He also said even older Nvidia H100 chips are now renting for more than they did when they were new. He added that SpaceX could rent out its compute several times over if it said yes to every request.

That pricing power is already feeding into guidance. SpaceX expects first-quarter 2027 revenue of $33 billion to $37 billion, and its finance chief said prices for new capacity were running slightly above the top of the range discussed a quarter earlier. That outlook is more than double the company’s latest quarterly sales.

Nvidia’s finance chief has also pointed to strong growth ahead. CFO Colette Kress said in August that Nvidia expects revenue to grow 70% in fiscal 202.Sean Gallup / Getty Images

Colossus II will lean heavily on Vera Rubin

The detail that matters most for Nvidia came when Musk described the next phase in Memphis. In the earnings call, he said SpaceX’s new compute next year will be primarily Vera Rubin, with plans for a training cluster of 440,000 Vera Rubin computers by the end of the second quarter. He added that he expects a shortage of AI computing power to last a long time.

Those are complete systems rather than standalone chips, and full systems carry a bigger price tag than chips alone. Vera Rubin, a platform built from 1.3 million components, is designed to deliver 10 times the performance per watt of Grace Blackwell, according to TheStreet, which reported in March that the platform had entered full production.

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That buildout lines up with Nvidia’s own forecasts. CEO Jensen Huang said in March that he sees at least $1 trillion in orders for Blackwell and Vera Rubin through 2027. That was double the commitment in demand he had cited a year earlier. Big commitments like SpaceX’s are what that projection depends on.

Nvidia’s finance chief has also pointed to strong growth ahead. CFO Colette Kress said in August that Nvidia expects revenue to grow 70% in fiscal 2028, well above the 44% expected by analysts, while noting that the outlook reflects supply constraints. She added that customer forecasts indicate growth will double next year.

What this means for Nvidia investors

Musk is aiming far higher. He told investors SpaceX’s annual recurring revenue could reach $500 billion to $1 trillion by the end of 2027, though analysts project full-year 2027 revenue closer to $110 billion based on LSEG data. Even the lower estimate would require a huge expansion in computing capacity.

Either way, the hardware has to come from somewhere, and Musk has made clear where he plans to get it. Huang has said Vera Rubin is already in production, and Nvidia expects partners to offer Rubin-based products in the second half of 2026. That timing lines up neatly with Musk’s plans for next year.

Risks remain. SpaceX’s spending still outpaces its revenue, and Nvidia itself expects supply to stay tight. Still, when one of the most aggressive builders of AI computing power names Vera Rubin as the backbone of its next expansion, Nvidia shareholders have good reason to pay attention.

Related: Elon Musk sends a strong memo to SpaceX and Tesla stock investors

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Why we love this deal

A tiny bathroom without any cabinets or shelves comes with its own unique set of challenges. Even if you have your toothbrushes and skincare products stored in a larger powder room, it’s still nice to have a spot for extra rolls of toilet paper and hand towels in the smaller one. Normal-sized storage cabinets won’t fit in these spaces, but there are narrow units available that will fit in a cramped corner or underneath a pedestal sink. Since these compact bathroom cabinets are smaller, they’re also less expensive, making it more affordable to organize your space.

One option that fits the bill is the Akxomel Small Rattan Bathroom Cabinet. It has a trendy design that can elevate the room with pale oak wood and natural textures, and it retails for only $60. Prime members can score the chic cabinet for even less with an exclusive deal dropping the total to only $46.

Akxomel Small Rattan Bathroom Cabinet, $46 (was $60) at Amazon

Courtesy of Amazon

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Why do shoppers love it?

The standout feature of this gorgeous rattan cabinet is its slim, space-saving design that measures 7.9 inches long, 7.9 inches wide, and 27.6 inches tall, which is just over 2 feet high, so it fits even in tighter spaces. For a better understanding of its size, its footprint is smaller than a standard sheet of printer paper. There are four tiers of shelves behind the two doors. You could put a jumbo roll of toilet paper on the shelves, but since the shelves are also adjustable, you could remove them to accommodate taller items, like mouthwash or cleaning supplies.

“It fits perfectly in the narrow space next to my toilet and provides much more storage than I expected,” raved one shopper. As for the performance, they reported, “Keeps everything organized and out of sight, making the bathroom look much cleaner.”

Related: Walmart is selling a ‘useful’ over-the-door pantry organizer for just $30

While this slim rattan cabinet is marketed as a bathroom cabinet, its aesthetically pleasing appearance with a wood grain finish, rattan paneling, and golden hardware would look great in any room. If you need a spot to put your drink and remotes between the couch and recliner, the narrow cabinet will do it in style. For even more versatility, the doors can be assembled to open from either side, working with nearly any configuration. 

Details to know 

Dimensions: 7.9 inches long, 7.9 inches wide, and 27.6 inches tall.

Materials: Engineered wood.

Is assembly required?: Yes.

Over 70% of shoppers give this bathroom cabinet a perfect five-star rating. “Well-built and sturdy,” one shopper called it. “I was struggling to find storage for our tiny half-bath, and this narrow cabinet ended up being the ideal solution.”

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Available for as low as $46, the Akxomel Small Rattan Bathroom Cabinet will add functionality and style to your home.

TheStreet aims to feature only the best products and services. If you buy something via one of our links, we may earn a commission.

Why we love this deal

Adding smaller storage can be good for pinpointed sections of your home, but overall storage needs something bigger. A tall bookcase can make more use of vertical space, helping tidy up larger rooms like the family room, office, or kitchen, without taking up tons of floor space. Opting for options with cabinets can also help you store messier items that may not look great on an open shelf.

The Hiphuta 7-Tier Bookshelf and Cabinet offers both open and closed storage with seven whole tiers of space for a discounted price. This allows for a more versatile storage setup while minimizing space taken. It also looks nice enough to place in any part of the home with seven colors to choose from all for just $110.

Hiphuta 7-Tier Bookshelf and Cabinet, $110 (was $140) at Walmart

Courtesy of Walmart

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Why do shoppers love it?

This bookshelf can hold a ton of items, with each shelf holding up to 44 pounds. Each shelf measures 11.2 inches tall, allowing space for books, decor, towels, electronics, figurines, and seasonal decorations, while the lower cabinet features two more shelves with an adjustable shelf that can move in 2.5-inch increments, or the shelves can be removed, allowing you to store larger items like bulk toiletries, food, appliances, or electronics like a record player or consoles. Small magnetic closures help keep the door shut, offering a clean appearance, even when holding large, bulky items. 

Related: Amazon’s $136 farmhouse storage cabinet holds over 1,000 pounds

The bookshelf is made with engineered wood and has an anti-tipping device for safety, letting you attach it to the wall, which can be helpful in a home with pets or kids.  The full bookshelf measures 9.3 inches deep and 23.6 inches wide, taking up very little space compared to the amount of storage offered. Shoppers can choose from green, white, Oak, blue, black, gray, or red, offering a color that fits into any home. The smooth surface features an easy-to-clean, scratch-resistant, and waterproof coating that keeps the shelf looking brand new, even after long-term use. 

Details to know

Size: The whole shelf measures 23.6 inches wide, 9.3 inches deep, and 68 inches tall.

Colors: Choose from seven colors, including red, green, black, brown, and gray.

Weight capacity: Each of the seven shelves holds up to 44 pounds.

One reviewer said, “It’s easy to put together, and it came with extra parts. It was nice having extra parts, rather than being shorted. The instructions were easy to follow and would be safer to put together with two people, but I was able to assemble it myself with no issues. I bought two because we liked them, planning on buying two more to create a “built-in” cabinetry look.”

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The Hiphuta 7-Tier Bookshelf and Cabinet offers both open and closed storage, along with adjustable shelving and multiple color options. This bookshelf offers sturdy storage for any room, and keeps your place looking clean and tidy for just $110 at Walmart.

Palantir Technologies (PLTR) has a reputation for assisting governments, military contractors, and big businesses in deciphering complex data.

It now aims to assist businesses in selecting which ads you see.

Marketing company Stagwell (STGW) expanded its partnership with Palantir on Oct. 22, putting Palantir’s artificial intelligence technology inside products used to build audiences, analyze consumer sentiment and plan, optimize and measure advertising campaigns.

With this partnership, Palantir enters a whole new area of corporate America.

Stagwell has already framed the partnership as a sizable revenue opportunity.

Mark Penn, CEO of Stagwell, said that the Palantir-powered technology might potentially generate hundreds of millions of dollars in additional income for his firm when the companies originally announced their agreement in November 2025.

Stagwell says the expanded agreement includes Palantir technology in its AI marketing products.

The importance to Palantir investors extends beyond advertising.

In its most recent reported quarter, Palantir’s U.S. commercial sales increased 149% year over year.

Finding new companies where its AI software can be integrated into regular operations is necessary to maintain that growth rate.

One of them may be marketing.

Palantir wants to become part of how companies sell

There is considerably more to the expanding Stagwell connection than just making commercials.

Four Stagwell systems will use Palantir’s technology:

Machine OS connects workflows, personnel, and marketing tools.

The Knowledge Machine converts consumer sentiment data into choices.

The Audience Machine generates targetable audience groups and client profiles.

Additionally, the Media Machine employs AI agents to assist in the planning, optimization, and measurement of advertising campaigns across many platforms.

Stagwell says Palantir’s software will connect product data and workflows without requiring clients to switch technologies.

That difference is crucial.

A big business may have sales data in one system, advertising data in another, and customer information in a third.

Palantir argues that its software can link such systems and allow AI to act on the data without requiring the business to give up control of its data to a single closed platform.

Palantir already provides comparable products to manufacturers, hospitals, and military firms.

Related: Palantir stock faces brutal test after crushing expectations

The data is not the same.

It’s not the fundamental issue.

The November 2025 agreement originally paired Palantir Foundry with Stagwell’s marketing data and software to create a central platform for marketing and advertising decisions.

Penn referred to the concept at the time as the “holy grail of marketing.”

More significantly for investors, Stagwell planned to offer the platform on its own instead of only to current agency customers.

Stagwell has already put money behind the Palantir bet

This collaboration is no longer only exploratory.

The Palantir-powered marketing system has already landed two proof-of-concept contracts and one $5 million complete deployment, according to a statement made by Stagwell earlier this year.

Additionally, the corporation was developing a version targeted at small and medium enterprises.

According to a Stagwell earnings-call transcript, Penn said the company wanted the platform to become a new business line capable of producing potentially hundreds of millions of dollars in revenue.

That goal has not yet been accomplished.

However, the plan has a wide distribution network because of Stagwell’s current company.

The corporation made $2.9 billion in sales in 2025 and has over 55 agency partners.

Additionally, its digital transformation division is expanding more quickly than the corporation as a whole.

While overall net sales grew by 5% organically, digital-transformation net revenue grew by 18% in the second quarter.

Stagwell reported $786 million of second-quarter revenue, up 11% from a year earlier.

Stagwell also combined its AI capabilities under a new Stagwell AI brand two days prior to announcing the larger Palantir agreement.

According to the firm, rather than replacing their entire marketing stack, the portfolio is designed to enable companies to add certain AI technologies to the technology they currently use.

Palantir is one of the technology partners behind that strategy.

That gives Palantir something valuable: another route into large corporate customers without having to sell every deployment alone.

Palantir’s AI expansion is reaching an unlikely marketFinn Gomez / Getty Images

Palantir’s commercial business needs more markets like this

For the Stagwell connection to be significant, Palantir does not require advertising to grow into its major business.

Palantir needs more instances of its software being used in corporate settings where businesses spend significant sums of money annually.

Marketing qualifies.

Palantir’s second-quarter U.S. commercial revenue rose 149% to $764 million. It closed a record $2.13 billion in U.S. commercial total contracts during the quarter, up 153%. Total sales rose 93% to $1.94 billion. Palantir expects U.S. commercial revenue to exceed $3.42 billion in 2026, a 134% increase.

Those numbers create a difficult comparison for future quarters.

Palantir cannot continue to depend solely on a limited number of clear AI use cases.

It must continuously identify new divisions, sectors, and processes where clients feel its software generates sufficient value to support contract expansion.

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Stagwell provides investors with an illustration of how that may occur.

However, there is also a significant drawback.

Neither Palantir nor Stagwell revealed the extended Oct. 22 partnership’s financial terms.

There is no public breakdown of how much of Stagwell’s hundreds of millions of dollars in income would eventually go to Palantir, and it is Stagwell’s goal, not Palantir’s.

AI marketing is also becoming crowded.

Palantir is not the only AI supplier vying for a spot in corporate marketing departments since Stagwell itself collaborates with other major IT firms like Adobe and ServiceNow.

Adoption is therefore the key metric to watch.

It’s helpful to have another collaboration announcement.

It would be far more crucial to make additional $5 million deployments.

Palantir has previously shown that businesses will handle complicated supply chains, industries, hospitals, and military projects using their software.

If Stagwell can transform the same architecture into something that marketers can afford at scale, Palantir will have demonstrated something more comprehensive:

Its future business market may not have to resemble its last one at all.

Related: Palantir hits record as its next AI market gets awkward