SpaceX Is in Talks on a Multibillion Dollar Defense Contract. Here Is What It Means for Investors
SpaceX is in talks with the Pentagon over a multi-billion-dollar AI computing deal. Could this be the contract investors have been waiting for?
Overview
In a move that could help validate SpaceX’s (NASDAQ:SPCX) enormous investment in artificial intelligence (AI), the company is reportedly discussing a multi-billion-dollar computing contract with the Department of Defense (DOD), as originally reported by The Wall Street Journal.
The terms of the agreement, while not yet confirmed by the Pentagon or SpaceX, would allow the Defense Department to use SpaceX’s data centers to run AI models. This could follow similar deals SpaceX has inked with Alphabet (NASDAQ:GOOG) and Anthropic, and place it among an exclusive group of cloud-computing providers that are supporting the Pentagon’s AI operations.
Details
Although the deal remains tentative and, in The Journal’s words, “could fall apart,” the development may reveal something important for SpaceX investors. Let’s take a closer look.
Source
Originally published at www.fool.com.