SpaceX signs $1.1 billion-per-month AI computing deal — MarketWatch
SpaceX has entered into an agreement with an unnamed company to provide computing capacity for artificial intelligence worth $1.1 billion per month. The contract is set to begin in December and would generate about $13 billion in annualized revenue, MarketWatch reports.
Target of $100 billion in annual revenue
SpaceX Chief Financial Officer Bret Johnsen disclosed the deal at a Goldman Sachs conference. According to him, the company aims to reach an annual revenue run rate of $100 billion by the end of 2026. This metric estimates potential full-year revenue based on results over a shorter period.
Deutsche Bank analyst Edison Yu estimated SpaceX's annual revenue run rate at about $31 billion in June. In a note last month, he said the $100 billion target is likely achievable primarily thanks to neocloud and Cursor, a startup acquired by SpaceX.
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Other deals and the risk of early termination
In July, SpaceX signed a six-month, $6.7 billion agreement for computing capacity with an unnamed client. Several analysts suggested that the client could be the U.S. Department of Defense. The company also has multiyear agreements to provide computing resources to Anthropic, Alphabet, and the startup Reflection AI.
According to documents, Anthropic agreed to pay SpaceX $1.25 billion per month under an agreement that ends in May 2029. Google agreed to pay $920 million per month from next month through June 2029.
At the same time, Johnsen said that nearly all or all computing-capacity agreements allow both sides to terminate them early after several months. According to him, this should enable SpaceX to retain computing resources for its own products, which need them for inference and training.
