Elon Musk's SpaceX in talks to sell Pentagon billions in AI data-centre capacity
SpaceX is in negotiations with the U.S. Department of Defense to provide massive data-center capacity for advanced AI models. This deal would deepen the Pentagon's reliance on Elon Musk's companies for critical national security infrastructure.
Why it matters
The deal highlights the growing intersection of private tech giants and military AI capabilities, raising questions about vendor lock-in and national security.
Elon Musk’s SpaceX is in discussions with the US Defense Department to offer billions of dollars’ worth of data-centre capacity for running advanced artificial-intelligence models, according to a report by Wall Street Journal. If finalised, the agreement would lead to significant expansion of SpaceX’s role inside America’s national-security infrastructure, where the Pentagon already relies on the company for rocket launches, satellite communications and missile-tracking systems. People familiar with the talks told the WSJ that the arrangement could cost the Pentagon up to several billion dollars, though negotiations are ongoing and could still fall apart.
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