Musk's SpaceX in talks to provide computing power to the Pentagon, WSJ reports

Elon Musk's SpaceX is in talks to provide the U.S. Department of Defense with billions of dollars in data center capacity to run AI models, the Wall Street Journal reported. SpaceX employees have discussed competing with neocloud firms like CoreWeave by offering lower-priced computing capacity to AI customers. The discussions are ongoing and could still fall apart.

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