SpaceX (SPCX) in Defense Talks for Multi-Billion Dollar Contract

SpaceX (NASDAQ:SPCX) is reportedly in discussions for a multi-billion-dollar computing contract with the Department of Defense (DOD) that would allow the Pentagon to use its data centers for AI models. Although the terms are not confirmed, this move could enhance SpaceX's prospects in artificial intelligence, especially since it previously acquired xAI, now valued at about $1.6 trillion. The AI segment, which generated an operating loss of about $6.4 billion in 2025, may benefit from such a deal by offsetting financial losses. This potential contract could signal a shift towards profitability for SpaceX, making it significant for investors.