SpaceX is discussing a potential multibillion-dollar deal with the US Department of Defense (DoD) to supply data center computing capacity for AI models, according to a report, though the talks are ongoing and could still fall through.

The move would broaden SpaceX’s Pentagon work beyond launches.

Its Starshield business already supports US military and intelligence missions, including satellite communications and missile-tracking capabilities, and the company also won a US$2.29 billion US Space Force contract for a space-based military data network.

The Pentagon already buys cloud capacity through Joint Warfighting Cloud Capability (JWCC), a US$9 billion multi-cloud program for operational, intelligence, and enterprise workloads that includes Amazon, Microsoft, Google, and Oracle.

Any deal for sensitive workloads would likely require DoD-specific cloud accreditations, with Impact Level 6 (IL6) typically needed for Secret-level data.

Some officials and analysts have also raised concerns about overreliance on Musk-controlled companies for national security systems.

🔗 Source: Cailianshe