SpaceX in Talks to Sell AI Computing Capacity to Pentagon, Accelerating Infrastructure Push

SpaceX is expanding beyond rockets and Starlink by selling artificial-intelligence computing capacity to customers including Anthropic and Google, positioning itself in the fast-growing “neocloud” market. The business gives the company another source of recurring revenue and is increasingly viewed as a central pillar of its potential public-market valuation, even as the capital-intensive operation remains far from profitable.

The AI division generated $2.6 billion in revenue in SpaceX’s latest reported quarter, more than triple the previous level, according to the company’s quarterly financial results. Demand from Anthropic, Google and other customers drove the increase. The unit nevertheless recorded a $1.5 billion loss in the same quarter, underscoring the heavy spending required to build computing capacity and the uncertainty over when rapid sales growth will translate into earnings.

SpaceX has historically generated most of its revenue from rocket launches and Starlink satellite communications, but is now expanding into the AI cloud computing market. Its partnership with open-source AI startup Reflection AI marks an effort to turn data centers and high-end chips into a new revenue stream while competing with major cloud providers for enterprise computing demand.

The latest reports on July 20, 2026, show that SpaceX has signed a $6.3 billion compute-leasing contract with Reflection AI and will provide access to Nvidia GB300 chips at the Colossus 2 data center. The deal will support Reflection AI's training of open-source models and formally bring SpaceX into the market as a compute provider.

The rapid expansion of Google’s Gemini Enterprise is driving demand for GPUs and data-center capacity to support enterprise generative AI. To supplement its own infrastructure, Google is turning to SpaceX for computing resources. The deal highlights intensifying competition among technology giants for AI capacity while opening a new revenue stream for SpaceX beyond its satellite and launch businesses ahead of an IPO.

Under the latest agreement, Google will pay SpaceX about $30 billion from 2026 through 2029 to rent roughly 110,000 NVIDIA GPUs at xAI’s computing cluster in Memphis, United States. Reports estimate that Google will pay about $920 million a month, providing SpaceX with revenue under a multiyear contract.