SpaceX, the aerospace company founded by Elon Musk, is in talks with the U.S. Department of Defense over a potential multibillion-dollar agreement to provide data center capacity for running artificial intelligence models, AzerNEWS reports, citing The Wall Street Journal.
According to sources familiar with the matter, the proposed arrangement would allow SpaceX to supply the Pentagon with computing capacity worth up to several billion dollars. The negotiations are ongoing, and no final agreement has been reached.
If concluded, the deal would further strengthen cooperation between SpaceX and the Pentagon while expanding the company’s presence in the rapidly growing AI infrastructure market.
The report notes that SpaceX has previously signed similar agreements with Anthropic and Google. Sources also said the company is exploring ways to compete with AI infrastructure providers such as CoreWeave by offering customers computing power at more competitive prices.