The US Department of Defense is reportedly in talks with SpaceX regarding leasing compute capacity for the Pentagon.

As reported by The Wall Street Journal (WSJ), the two are in conversations regarding a deal that could be worth several billion dollars. Those familiar with the matter said the talks remain ongoing and could yet fall apart.

The DoD (stylized Department of War or DoW) already works with SpaceX for rocket launches and managing satellites for communications and missile tracking operations, and SpaceX AI models are among those approved for use in classified settings.

DCD has contacted SpaceX for comment.

The DoD is also working with Amazon Web Services (AWS) for AI and compute capacity. In November 2025, AWS said it would spend $50 billion expanding its AI and supercomputing capacity for US government customers, including adding nearly 1.3GW of compute capacity across the AWS Top Secret, AWS Secret, and AWS GovCloud (US) Regions at all classification levels by building new data centers.

Under the Joint Warfighter Cloud Capability, alongside AWS, the DoD uses Google, Microsoft, and Oracle.

SpaceX has, of late, signed major compute capacity agreements with the likes of Reflection, Anthropic, Google, and Cursor - an AI coding platform.

The company launched its IPO on June 12, after it acquired Musk's xAI, combining the Grok AI models and data centers into the business.

The company is leasing capacity at its 'Colossus' data centers outside Memphis, Tennessee, previously earmarked for Elon Musk's xAI unit, now stylized SpaceXAI.

Anthropic is reportedly using all of the Colossus 1 data center capacity - including 300MW and more than 220,000 GPUs.

The company purchased the site for Colossus 2 last March, and the data center came online in January. A third data center is in the works, located in Southaven, and the company is also spending $659m on another building to be constructed on an adjacent land parcel.