Launch isn't profitable simply because ongoing Starship R&D is eating into it. A lot of opex, capex, and pre-revenue.

If they start running Starship anywhere near the way they do Falcon 9, it'll flip into profits. A lot of big bets SpaceX made ride on Starship coming online. I'm honestly surprised Starlink is already so profitable without it.

One of their big named bets includes: orbital datacenters. Which puts this specific deal into perspective.

80% of the space launch business is putting starlink satellites into orbit, so it's all internal funny money. They could very well be letting the space launch business take losses to make the satellite internet business look better (only profitable part of the whole thing).

Wasn't starship supposed to be funded by the NASA contract?

Orbital datacenters sound like a dangerous bet. I couldn't think of a worse place for a lot of delecate electronics.