The Wall Street Journal originally reported that SpaceX is discussing the computing contract with the Department of Defense. The Pentagon and SpaceX have not yet confirmed the terms of the reported agreement. The that the deal remains tentative and "could fall apart."

SpaceX has previously entered into similar deals with Alphabet and Anthropic. The company acquired xAI on February 2, 2026. The combined entity of SpaceX and xAI is valued at approximately $1.6 trillion.

SpaceX stated in its pre-IPO presentation that artificial intelligence represents a $26.5 trillion market opportunity. The company also stated in that presentation that the market opportunity for its other business segments is approximately $2 trillion. xAI reported an operating loss of approximately $6.4 billion in 2025.

SpaceX stock is trading at more than 80 times sales. The stock is also trading more than 40 percent below its all-time high. SpaceX had its market debut in mid-June 2026.

A multi-billion-dollar computing contract with the Department of Defense would represent a significant expansion of SpaceX's role in military artificial intelligence infrastructure. The proposed agreement would give the Pentagon access to SpaceX's data centers for running AI models, building on the company's previous deals with Alphabet and Anthropic in the AI sector.

The timing of the reported discussions comes as SpaceX operates as a combined entity with xAI, which reported an operating loss of approximately $6.4 billion in 2025. SpaceX itself reported a net loss of approximately $4.9 billion in 2025. The company's stock is trading at more than 80 times sales and more than 40 percent below its all-time high following its market debut in mid-June 2026.

The combined SpaceX-xAI entity is valued at approximately $1.6 trillion. SpaceX has identified artificial intelligence as a $26.5 trillion market opportunity in its pre-IPO presentation, compared to approximately $2 trillion for its other business segments.