July 17 (Reuters) - Elon Musk's SpaceX is in talks to provide the U.S. Department of Defense with access to data center capacity worth billions of dollars to run AI models, the Wall Street Journal reported on Friday, citing people familiar with the matter.
According to the report, SpaceX employees have discussed plans to compete more directly with neocloud firms such as CoreWeave by selling computing capacity to AI customers at lower prices.
The discussions are ongoing and could still fall apart, WSJ reported.
SpaceX and the Pentagon did not immediately respond to Reuters requests for comment. Reuters could not independently verify the report.
(Reporting by Anhata Rooprai in Bengaluru; Editing by Pooja Desai)
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