SpaceX Negotiates Multi‑Billion‑Dollar AI Computing Deal with U.S. Pentagon

Elon Musk’s SpaceX is in talks with the U.S. Department of Defense to provide data‑center capacity valued at several billion dollars for running artificial‑intelligence models. The Wall Street Journal reports the pact could extend the Pentagon’s existing relationship with SpaceX, a key partner for rocket launches, satellite communications and missile tracking.

SpaceX has recently signed cloud‑computing agreements with Alphabet’s Google and AI startup Anthropic, supplying tens of thousands of Nvidia chips and hundreds of megawatts of compute. Internal sources say employees are discussing a strategy to compete with emerging cloud firms such as CoreWeave by offering lower‑price AI compute to the defense sector.

The Pentagon is seeking additional cloud capacity to support intelligence agencies and military AI applications, joining other major providers—including Amazon, Microsoft, Google and Oracle—in a push for more AI‑ready infrastructure. The deal remains tentative and could collapse, according to the WSJ. Following the news, SpaceX shares fell about 5.4% to $123.99.