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Musk’s SpaceX in Talks to Provide Computing Power to the Pentagon, WSJ Reports

SpaceX is in talks with the Pentagon to provide AI compute capacity, potentially costing billions as the company seeks revenue from its underused data centers.

  • On Friday, the Wall Street Journal reported that SpaceX is in discussions with the Department of Defense to provide military access to its data-center capacity for running AI models, potentially costing the Pentagon billions.
  • Elon Musk has built data centers in Memphis, Tennessee, where his startup xAI uses only 11 percent of capacity; selling excess compute could generate revenue as SpaceX lost $5 billion last year.
  • SpaceX has secured major military agreements, including a $2.29 billion Space Force contract for a satellite network and a $4.16 billion contract to build a system tracking missiles and aircraft from orbit.
  • Amazon, Google, Microsoft, and Oracle all maintain similar cloud computing deals with the Pentagon, positioning SpaceX among other major tech leaders providing military AI services.
  • Critics note potential hypocrisy, citing Musk's past refusal to provide Starlink access to Ukrainian forces, which he justified as avoiding being "explicitly complicit in a major act of war.
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19 Articles

Lean Right

It is about computing capacities worth several billion dollars. SpaceX wants to sell customers corresponding computing capacities at lower prices.

·Düsseldorf, Germany
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Lean Left

WSJ reports SpaceX in talks with Pentagon over multibillion-dollar dealSpaceX is in talks with the U.S. Department of Defense to sell billions of dollars in computing power. The deal is similar to previous agreements with Google and Anthropic.

·Kyiv, Ukraine
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Reuters broke the news in London, United Kingdom on Friday, July 17, 2026.
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