Elon Musk, the billionaire entrepreneur and CEO of SpaceX, announced on Thursday that Starlink, the satellite internet service offered by his aerospace company, has achieved breakeven cash flow. This comes just months after reports surfaced that Starlink had experienced significant revenue growth but fell short of Musk's expectations.
Starlink generated $1.4 billion in revenue in 2022, marking a substantial increase of over $1 billion from the previous year. Musk made the announcement on Twitter, stating that Starlink now represents a majority of all active satellites and will have launched a majority of all satellites from Earth by next year.
Starlink is described as the world's first and largest satellite constellation, providing broadband internet using a low Earth orbit. SpaceX, Musk's company, has been a major success story and is currently valued at nearly $150 billion, nearly quintupling its value over the past four years.
However, despite the positive news of achieving breakeven cash flow, Starlink's revenue still fell short of Musk's desired targets. A Wall Street Journal report revealed that the service brought in $1.4 billion in revenue last year, but this was below Musk's initial expectations.
Starlink has become popular in rural areas and other locations where traditional communication methods are challenging. It has even been used to reestablish communication in war zones like Ukraine, where thousands of terminals were sent after Russia invaded. Recently, there have been calls for Starlink to provide internet access to Gaza following Israeli airstrikes that severely damaged communication infrastructure in the area. Musk acknowledged the pressure but has not provided further details on how and when this would be implemented.
Elon Musk's net worth is estimated to be $228.1 billion, making him the wealthiest person in the world.
Overall, while Starlink has achieved breakeven cash flow and experienced significant revenue growth, it has yet to meet Musk's initial expectations. The service has proven valuable in providing internet access in remote areas and war zones. The request for Starlink to support communication in Gaza remains unresolved, with no further information available at this time.