Such a deal would deepen the Pentagon’s ongoing collaboration with SpaceX, a vital partner for rocket launches as well as satellite communications and missile tracking.
The report indicates that SpaceX employees have explored strategies to compete more effectively with neocloud entities like CoreWeave by providing computing resources to AI clients at more competitive prices.
In line with many other major organizations, the Defense Department is striving to secure additional cloud-computing resources to bolster intelligence agencies and military AI initiatives.
Amazon announced late last year that it plans to invest up to $50 billion to enhance AI and supercomputing capabilities for US government clients through its Amazon Web Services cloud division.
According to the WSJ, discussions between SpaceX and the Pentagon are still in progress and may not reach fruition.
Both SpaceX and the Pentagon did not immediately respond to requests for comments from Reuters, which was unable to independently verify the information.
In recent months, the space company has entered into similar agreements. In June, SpaceX finalized a multi-year cloud services contract with Alphabet’s Google, granting access to approximately 110,000 Nvidia chips and associated computing infrastructure.
Additionally, Anthropic announced in May that it had secured a deal to utilize the complete computing capabilities of SpaceX’s Colossus 1 facility in Memphis, acquiring 300 megawatts of new capacity.
