SpaceX in talks to sell the Pentagon AI compute | Deal could reach billions, squaring off against CoreWeave
TL;DR
SpaceX is in talks to sell the Pentagon billions in data-center compute for AI, after similar deals with Anthropic and Google.
SpaceX is in talks with the US Department of Defense to supply the Pentagon with billions of dollars of data-center computing capacity to run AI models. The Wall Street Journal reported it first; Bloomberg followed.
People familiar with the matter said the two sides are discussing a deal in which SpaceX would provide computing power to the Defense Department, with the contract potentially worth up to several billion dollars. The talks are ongoing and could still fall apart.
This isn't SpaceX's first compute sale. In recent months it has signed similar supply deals with Anthropic and Google, and it is planning to greatly expand its cloud-computing business. In recent weeks SpaceX employees have discussed selling capacity to AI customers at lower prices to compete more directly with neocloud providers like CoreWeave.
If the deal closes, SpaceX steps into the defense-cloud market, going head-to-head with Amazon, Microsoft, Google and Oracle, all of which already sell compute to the Pentagon. The Pentagon requested close to $30 billion in fiscal 2027 to buy next-generation AI supercomputers and modernize its computing arsenal.
First Anthropic and Google, now the Pentagon. Musk has turned a rocket company into a cloud company.
via Bloomberg / Cailianpress / AOL
People familiar with the matter said the two sides are discussing a deal in which SpaceX would provide computing power to the Defense Department, with the contract potentially worth up to several billion dollars. The talks are ongoing and could still fall apart.
This isn't SpaceX's first compute sale. In recent months it has signed similar supply deals with Anthropic and Google, and it is planning to greatly expand its cloud-computing business. In recent weeks SpaceX employees have discussed selling capacity to AI customers at lower prices to compete more directly with neocloud providers like CoreWeave.
If the deal closes, SpaceX steps into the defense-cloud market, going head-to-head with Amazon, Microsoft, Google and Oracle, all of which already sell compute to the Pentagon. The Pentagon requested close to $30 billion in fiscal 2027 to buy next-generation AI supercomputers and modernize its computing arsenal.
First Anthropic and Google, now the Pentagon. Musk has turned a rocket company into a cloud company.
via Bloomberg / Cailianpress / AOL
