SpaceX is negotiating a multi-billion-dollar contract to supply the U.S. Department of Defense with data center computing power for artificial intelligence workloads, according to people familiar with the matter.
The discussions, first reported by The Wall Street Journal, would allow the Pentagon to run AI models on SpaceX infrastructure. SpaceX already partners with the Defense Department on rocket launches, satellite communications, and missile tracking. Employees have discussed leveraging the capability to offer lower-priced computing to AI clients, competing against firms like CoreWeave. The company secured access to roughly 110,000 Nvidia chips through a multi-year cloud deal with Google signed in June.
Negotiations are ongoing and could still collapse. Neither SpaceX nor the Pentagon immediately responded to requests for comment. The talks follow SpaceX's acquisition of xAI in February, creating a combined entity valued at approximately $1.6 trillion.