SpaceX in talks to supply Pentagon with AI computing power

SpaceX is negotiating a multibillion-dollar arrangement to lease AI data-center computing capacity to the U.S. Department of Defense, the Wall Street Journal reported July 17. Rather than selling data centers outright, SpaceX would rent out compute for a limited period to run AI models across Pentagon operations - a move that would push the company into direct competition with Amazon, Microsoft, Google and Oracle for military cloud work. The talks are ongoing and could still fall apart; they follow SpaceX's earlier compute deals, including a roughly $45 billion multiyear contract with Anthropic and about $920 million a month from Google.