SpaceX is positioning itself to become a central player in the Pentagons rapidly escalating artificial intelligence race, potentially reshaping both modern warfare and the global tech marketplace.
According to the Daily Caller, Elon Musks aerospace giant is in active discussions with the Department of War to grant the Pentagon access to its advanced AI data centers, a move that would significantly boost U.S. warfighting computing power. The talks, first reported by The Wall Street Journal and attributed to unnamed sources, remain preliminary, and it is not yet certain whether a final agreement will be reached.
A Department of War official underscored the strategic stakes, telling the Daily Caller News Foundation, The Department of War is pushing to expand our AI Arsenal with secure compute at the operational edge to leverage AI for improved tactical decision making, particularly in denied, degraded, intermittent, and limited connectivity environments. Rather than selling physical infrastructure, SpaceX would effectively lease its AI computing capacity to the Pentagon for a defined period, mirroring private-sector cloud arrangements.
Such an arrangement would not come cheap, with the WSJ reporting that the leased computing power could ultimately cost the Department billions of dollars, according to individuals familiar with the matter. For conservatives who prioritize military strength and technological superiority over adversaries like China, this kind of investment reflects a necessary modernization of Americas defense posture, even as questions about cost and oversight remain.
SpaceX is no stranger to renting out its formidable computing resources, having already inked a massive deal with Google. Its AI data centers are being used by Google for $920 million a month from October 2026 to June 2029, the WSJ reported June 5, a contract that could reach $30.4 billion over 33 months if fully executed.
The company declined to comment to the DCNF, maintaining its usual tight-lipped posture on sensitive defense-related negotiations. Traditionally, SpaceXs core business has centered on satellite launches and reusable rockets like the Falcon 9, making this aggressive push into AI infrastructure a notable expansion of its portfolio.
SpaceXs potential AI lease to the War Department is only one facet of its deepening relationship with the U.S. military. The acting U.S. Space Forces portfolio acquisition executive for space-based sensing and targeting recently awarded SpaceX a $4.16 billion contract for the Space-Based Airborne Moving Target Indicator program on May 29, according to a press release.
That program could become a cornerstone of President Donald Trumps Golden Dome proposal, as it aims to enhance the Space Forces capabilities to the Joint Force through the establishment of a persistent, global capability to sense and track airborne targets from space. For advocates of a robust national defense and space dominance, this alignment between SpaceX and the Trump administrations strategic vision underscores the importance of private-sector innovation in securing American interests.
The proposed AI-computing deal with the Pentagon marks only the opening phase of SpaceXs entry into the data center and cloud-computing marketplace. SpaceX is reportedly seeking to challenge established players such as Coreweave, another firm that rents out computing power to third parties, the WSJ reported, citing people familiar with the companys plans.
These moves come on the heels of SpaceXs recent initial public offering, which has fueled speculation that Elon Musk could become the worlds first trillionaire. We believe we have identified the largest actionable total addressable market (TAM) in human history. We estimate that our quantifiable TAM is 28.5 trillion, SpaceXs filing states, a bold claim that signals not only commercial ambition but also the scale of the technological transformation now intersecting with Americas defense strategy.
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