Foxconn lands first SpaceX AI server order worth $52B

SpaceX is negotiating with the U.S. Department of Defense to provide data center capacity worth billions of dollars for running artificial intelligence models, according to an exclusive report by The Wall Street Journal published on July 17. The discussions, which remain ongoing and could still fall apart, would deepen the already expanding relationship between Elon Musk's aerospace company and the Pentagon.wsj+1

Pentagon Talks

Under the potential agreement, SpaceX would supply computing resources to the Defense Department in a deal potentially reaching several billion dollars, people familiar with the matter told the Journal. The talks come as the Pentagon seeks to expand its AI capabilities for military applications, and as SpaceX builds out ground infrastructure beyond its core satellite and rocket businesses.wsj

Reuters ↘ 3.79% confirmed the report, noting that SpaceX is looking to leverage its growing data center footprint to serve government clients. The company had already secured a $2.29 billion contract from the U.S. Space Force in May 2026 to build a secure satellite communications network connecting military sensors and weapons platforms.thewatch-journal+1

Foxconn Secures $52 Billion AI Server Order

In a related development, Foxconn Hon Hai Precision Industry Co., Ltd. has secured its first-ever AI server manufacturing order from SpaceX, Taiwan's Economic Daily reported on July 19. SpaceX plans to deploy more than 13,000 AI server racks powered by Nvidia's ↘ 4.27% GB300 chips, with each rack estimated to cost approximately $4 million — putting the total contract value at roughly $52 billion.investing+1

Foxconn expects to begin shipments in the fourth quarter of 2026 and continue into the first quarter of 2027. The order breaks what had been a duopoly held by Dell ↗ 5.41% and Super Micro Computer ↘ 0.56% in SpaceX's server manufacturing segment.news.futunn

Expanding Compute Ambitions

SpaceX has been rapidly expanding its computing infrastructure. The company has reportedly opened its data center capacity for compute leasing to outside customers including Google Alphabet Inc. ↗ 0.73% and Anthropic. According to the Financial Express, one such arrangement involves Google paying around $920 million monthly from October 2026 through mid-2029 for access to 110,000 Nvidia GPUs.financialexpress+1

The Pentagon discussions and the Foxconn order together signal SpaceX's transformation from a launch provider into a major player in AI infrastructure — though no final agreement with the Defense Department has been signed.reuters+1