SpaceX in talks with Pentagon for billions in AI computing power

SpaceX is in talks with the Pentagon to provide billions of dollars worth of data center computing power to run AI models, according to people familiar with the matter. The deal would deepen their existing partnership in areas like rocket launches and missile tracking.

Internally, SpaceX has discussed competing with companies like CoreWeave and Neocloud by offering lower prices for AI computing power. The Pentagon is also looking for more cloud resources to support its intelligence agencies and AI applications. Amazon Web Services last year pledged up to $50 billion for AI supercomputing infrastructure for the US government.

Talks are still ongoing and the deal may not happen. Neither side has commented.