SpaceX is reportedly in discussions with the U.S. Department of Defense for a potential multibillion-dollar agreement to supply AI data center capacity. This proposed arrangement would significantly expand SpaceX's cloud computing business, positioning it to challenge established AI infrastructure providers while strengthening its existing defense ties.

The talks specifically revolve around SpaceX providing computing capacity to the Pentagon for AI workloads, with the deal potentially valued at several billion dollars. SpaceX has recently secured similar AI infrastructure agreements with Anthropic and Google and is actively expanding its cloud computing operations, aiming to offer lower-cost computing to enterprise clients.

The Defense Department has recently approved SpaceX, alongside major tech players like Amazon, Google, Microsoft, and Oracle, for certain classified AI applications. The department is seeking $30 billion for its Artificial Intelligence Arsenal initiative. A Pentagon agreement would be a substantial boost to SpaceX's AI infrastructure business and government revenue.