SpaceX is in talks with the Defense Department about providing access to data-center capacity worth billions of dollars for running artificial-intelligence models, according to the Wall Street Journal. The arrangement would deepen ties between Elon Musk’s company and the Pentagon at a time when the military is racing to secure computing power for AI.
The two sides are discussing a deal in which SpaceX would provide computing capacity to the Defense Department at a cost of up to several billion dollars. People familiar with the matter cautioned that the talks are ongoing and could fall apart.
SpaceX has signed similar deals with Anthropic and Google in recent months, and is now planning to greatly expand its cloud-computing efforts. The company is discussing plans to compete more directly with existing providers such as CoreWeave by offering capacity to AI customers at lower prices.
Like many large enterprises, the Defense Department is racing to secure cloud-computing power to support divisions such as the National Security Agency as well as warfighters using AI in their day-to-day work. The Pentagon requested close to $30 billion in fiscal 2027 to purchase and enable next-generation AI supercomputers and modernize its computing arsenal.
A deal with SpaceX would mark the latest agreement between the company and the Pentagon, which relies on SpaceX for launching rockets and managing satellites for communications and missile tracking. Pentagon officials have said they want to reduce reliance on individual tech companies as the military embraces AI. Amazon, a leading provider of computing power to the Pentagon, is spending $50 billion to expand capacity for government agencies. Microsoft, Google, and Oracle are also major Defense Department cloud suppliers.
Some national-security officials have raised concerns that the Pentagon is too reliant on Musk’s services. Musk’s substantial financial contributions to President Trump’s 2024 campaign have fueled conflict-of-interest claims, though administration officials have denied those criticisms.
Sources
- The Wall Street Journal — SpaceX in talks with Defense Department for data-center capacity worth billions of dollars for AI models; discusses similar deals with Anthropic and Google, and Pentagon’s push to secure computing power
- DefenseScoop — Pentagon requesting close to $30 billion in fiscal 2027 for AI supercomputers and modernization
