“SpaceX is in talks with the Defense Department about providing the agency with access to data-center capacity worth billions of dollars for running artificial-intelligence models, deepening ties between Elon Musk's company and the Pentagon.
The two sides are discussing an arrangement in which SpaceX would provide computing capacity to the department at a cost of up to several billion dollars, people familiar with the matter said. The talks are continuing and could fall apart, the people said.
SpaceX has signed similar deals with Anthropic and Google and is planning to greatly expand its cloud-computing efforts, people familiar with those plans said. In recent weeks, SpaceX employees have discussed plans to compete more directly with existing providers such as CoreWeave by offering capacity to AI customers at a lower price, according to people familiar with the matter.
An agreement would mark the latest deal between SpaceX and the Pentagon, which relies on the company for launching rockets and managing satellites for communications and missile tracking. Some national-security officials have raised concerns the Pentagon is too reliant on Musk's services, and Musk's huge financial contributions to President Trump's 2024 campaign have fueled conflict-of-interest claims. Administration officials have denied those criticisms.
Like many large enterprises, the Pentagon is racing to secure cloud-computing power to support divisions such as the National Security Agency as well as warfighters using AI in their day-to-day work. Amazon.com, a leading provider of computing power to the Pentagon, is spending $50 billion to expand capacity for government agencies with an emphasis on the Defense Department. Microsoft, Alphabet's Google and Oracle are also major Defense Department cloud suppliers.
Pentagon officials have said they want to reduce reliance on individual tech companies as the military embraces AI. The Defense Department recently approved firms including SpaceX, Amazon, Google, Microsoft and Oracle for usage of their AI models and other technology in classified settings.” [1]
1. U.S. News: SpaceX, Pentagon In Talks On AI Push. Gardizy, Anissa; Ramkumar, Amrith; Peterson, Becky. Wall Street Journal, Eastern edition; New York, N.Y.. 18 July 2026: A3.
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