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SpaceX in talks with Pentagon for AI computing deal
18 Jul 2026

SpaceX is in talks with the US Department of Defense (DoD) to provide data center capacity worth billions of dollars, according to The Wall Street Journal.

The deal would allow the Pentagon to access large-scale computing power needed for advanced artificial intelligence (AI) work.

However, as per WSJ's report, no final agreement has been signed yet and the discussions could still fall through.

SpaceX's growing influence in AI computing market
Strategic alliance

If finalized, this deal would further strengthen SpaceX's relationship with the Pentagon.

The company already provides rocket launch services, satellite-based communications, and missile-tracking support to the US military.

This new agreement would add AI computing infrastructure to their existing partnership.

Notably, SpaceX is also looking beyond government contracts and plans to compete directly with "neocloud" firms like CoreWeave by offering cheaper computing capacity for AI customers.

DoD's push for cloud computing and AI capabilities
Cloud computing

Like many large organizations, the US Department of Defense is also looking to secure more cloud computing capacity for its expanding AI use.

The additional computing power would support intelligence agencies and help develop AI applications for military use.

Last year, Amazon announced it would invest up to $50 billion through its Amazon Web Services (AWS) cloud business to expand AI and supercomputing capacity for US government customers.

Cloud computing agreements with Google and Anthropic
Past deals

The potential deal with the Pentagon isn't SpaceX's first major cloud computing agreement.

In June, Google signed a multi-year, $30 billion deal with SpaceX for large-scale AI computing infrastructure.

The partnership is expected to bolster Google's AI capabilities while supporting SpaceX's expanding data center business.

Earlier in May, AI company Anthropic also announced its plan to use the full computing power of SpaceX's Colossus 1 facility in Memphis.