Jane Edwards 
- SpaceX has begun talks to supply DOW with AI computing capacity
- DOW seeks $30 billion for its Artificial Intelligence Arsenal initiative
- The 2026 Air and Space Summit will explore AI, commercial space relay and more
SpaceX is in discussions with the Department of War to provide data center capacity for running artificial intelligence models, a deal that could be worth billions of dollars, The Wall Street Journal reported Friday.
Government and industry leaders continue to navigate how emerging technologies reshape national security priorities across space and cyberspace alike. The Potomac Officers Club’s 2026 Air and Space Summit will bring together experts on July 30 to discuss AI, commercial space relay, interoperable optical networks, Golden Dome and more. Register now to save your seat and join the conversation shaping the future of air and space operations.
The negotiations remain ongoing and could still fall through, according to sources familiar with the discussions cited by WSJ.
How Is DOW Addressing Its AI Computing Needs?
According to WSJ, DOW is working to secure cloud computing capacity that supports divisions such as the National Security Agency and service members applying AI tools in their daily work. The department is seeking $30 billion for the Artificial Intelligence Arsenal, a new initiative focused on acquiring high-end AI chips, according to a document tied to its fiscal year 2027 budget request currently under discussion in Congress.
In May, DOW signed agreements with SpaceX and seven other companies to bring advanced AI capabilities to the department’s classified networks for authorized operational use.
How Has SpaceX Expanded Its AI & Space Business in 2026?
The talks with DOW follow a series of moves that have deepened SpaceX’s footprint in AI. In February, SpaceX acquired Elon Musk’s artificial intelligence company xAI as part of an effort to combine the two companies under a single corporate structure and integrate AI development with space launch, satellite-based communications and related infrastructure.
The company built on that foundation in June, when SpaceX priced its initial public offering at $135 per share, raising $75 billion and valuing the space and AI company at approximately $1.77 trillion. That same month, SpaceX agreed to acquire Cursor’s parent company, Anysphere, in an all-stock transaction valued at $60 billion to further broaden its frontier AI capabilities.
Alongside its AI expansion, SpaceX has continued to grow its defense portfolio, receiving a potential $4.16 billion other transaction authority agreement from the U.S. Space Force to support development of the Space-Based Airborne Moving Target Indicator program.
