SpaceX in talks to supply Pentagon with billions in AI compute capacity
The deal would provide data centre capacity valued at billions of dollars, occurring shortly after the company’s record-breaking initial public offering.
SpaceX is currently in negotiations to sell artificial intelligence compute capacity to the US Department of Defense, according to reports. The proposed arrangement would provide data centre capacity valued at billions of dollars, signalling a deepening of ties between Elon Musk’s aerospace company and the Pentagon.
The development comes shortly after SpaceX made its initial public offering on the Nasdaq on 11 June 2026. The offering was priced at $135 per share and raised approximately $75 billion, valuing the company at around $1.77 trillion. Following the debut, shares rose 27 per cent to $172 in early trading, making Musk the world’s first trillionaire on paper.
The negotiations are ongoing, and the deal has not yet been finalised or signed. The exact financial terms and the specific quantity of compute capacity to be sold have not been disclosed. Similarly, the timeline for the delivery of this capacity remains unclear.
This transaction highlights the intense demand for artificial intelligence infrastructure within the technology sector. Other companies are also seeking to secure resources; for instance, Anthropic is in talks with Meta to acquire compute resources.
The potential agreement underscores the expanding role of private aerospace firms in supporting national defence capabilities through advanced computing infrastructure.
