SpaceX is diversifying its revenue streams by renting out unused computing capacity from its Colossus data centers, potentially generating $26 billion annually.
Washington DC, United States Jul 19, 2026 ALN: Under pressure by analysts to justify its eye-popping valuation, SpaceX is diversifying beyond rockets and satellites to a seemingly innocuous but lucrative business opportunity: renting out the unused computing capacity from its Colossus data center complex. This strategic pivot comes at a time when the demand for artificial intelligence (AI) compute power is surging, driven by advancements in machine learning and the rapid evolution of AI technologies.
In May, SpaceX agreed to give Anthropic access to roughly 325,000 Nvidia GPUs across its Colossus data centers for $1.25 billion per month. Weeks later, it struck a similar agreement to provide Google with about 110,000 GPUs for $920 million per month. Together, the two contracts could generate about $26 billion for the company annually—more than SpaceX’s entire revenue last year. This diversification into AI compute represents a significant financial opportunity for SpaceX, especially as it seeks to bolster its valuation amidst scrutiny from investors and analysts alike.
With Elon Musk’s ambitious plans for building orbital data centers and establishing a Mars colony likely years away, these deals may help explain how SpaceX can justify a $1.8 trillion valuation after its record-breaking IPO last month. The company's foray into AI compute not only provides immediate revenue but also enhances its appeal to investors by showcasing its capabilities beyond traditional aerospace operations. Analysts like Sean Cray, a senior analyst covering telecom, media, and technology at Moody’s, suggest that this move positions SpaceX as a multifaceted technology company rather than solely a rocket manufacturer.
The business model works because demand for AI compute continues to outpace supply as the AI race heats up and companies build increasingly powerful models. Major tech firms and startups alike are racing to develop advanced AI applications, which necessitate substantial computational resources. Meanwhile, building a large data center can require years of development and a large investment, making SpaceX’s offering attractive right now. This allows the company to charge a premium to customers that need that computing power immediately, as noted by Cray.
For now, most of SpaceX’s revenue still comes from Starlink, its satellite internet service, and its traditional launch business. The company generated $18.7 billion in revenue last year, including $11.4 billion from connectivity services and about $4.1 billion from launches and other space-related work. Its AI segment contributed another $3.2 billion, but it also recorded an operating loss of roughly $6.4 billion—even as Musk has touted AI as the company’s next money-maker after it acquired xAI in February. This highlights the challenges the company faces in transitioning to a profitable AI model while simultaneously investing heavily in infrastructure.
Part of the reason for the losses may be that Grok, the company’s large language model, requires massive investment in GPUs, electricity, and other infrastructure to train and operate it. At the same time, Grok has so far lagged behind models created by competitors like Anthropic and OpenAI in terms of revenue and capabilities. This competitive landscape adds another layer of complexity to SpaceX’s ambitions in the AI sector.
Yet, even if Grok doesn’t manage to catch up to its competitors anytime soon, the compute renting business shows investors that the company has a proven path to profitability through its AI segment, according to Cray. “It shows that there are different pathways for them to generate revenue in their AI segment,” he said. “It doesn’t strictly have to come from Grok and their AI enterprise applications.” This diversification of revenue streams could be crucial for SpaceX as it navigates the volatile technology market.
Better yet, the company also has flexibility over what it does with the hardware. SpaceX can rent capacity to outside customers, but it can also use it to train newer versions of Grok or redirect it to Starlink’s own internal uses. This adaptability allows SpaceX to optimize its resources based on market demands and internal needs, potentially enhancing its overall operational efficiency.
This caveat could be a blessing and a curse, warned Sridhar Tayur, a professor of operations management at Carnegie Mellon University. Built into the contracts with Google and Anthropic is a 90-day cancellation provision that gives SpaceX the ability to reclaim its compute if Grok’s needs suddenly increase. This flexibility is essential for SpaceX to manage its resources effectively, especially as it seeks to scale its AI operations.
However, the same clause could also allow its customers to walk away if cheaper compute capacity becomes available, raising the risk that the revenue from this business could be temporary. “Is it a one-off thing that is not your main line of business?” he asked. “Or is infrastructure as a service going to become a permanent part?” This uncertainty underscores the challenges SpaceX may face in establishing a stable and long-term revenue stream from its AI compute offerings.
SpaceX’s competitors may have already taken note of the potential gains that come with renting compute. Meta is reportedly in talks to lease its computing power to Anthropic in a deal that could be worth up to $10 billion over two years. This competitive landscape illustrates the increasing interest in the AI compute market, as major tech companies recognize the value of leveraging existing infrastructure to meet growing demand.
Still, SpaceX’s prospects seem bright for now. The Wall Street Journal reported that the company was in talks to provide the Pentagon with data-center capacity potentially worth billions of dollars for running AI models. This potential partnership with the government could further validate SpaceX’s position in the AI compute market and solidify its reputation as a key player in the technology sector.
The deal isn’t final, but if it goes through, it would strengthen the case that selling compute could become a long-term business rather than a temporary one. This would not only enhance SpaceX's revenue prospects but also bolster its valuation, addressing some of the skepticism surrounding its market worth.
Musk’s foresight made it possible for SpaceX to sell its compute in the first place. Back in 2024, xAI brought its first major Colossus cluster online in just 122 days by converting an existing factory. Since then, the company has expanded its Memphis-area complex to roughly 2 million square feet across Colossus and Colossus II, which together provide about 1 gigawatt of compute power, with a plan to eventually include 1 million GPUs. This rapid expansion illustrates SpaceX's commitment to becoming a significant player in the AI compute landscape.
SpaceX’s valuation depends on enormous future growth. Critics have argued that its market value is highly dependent on long-shot bets that would require massive investments before generating meaningful revenue—if they pan out at all. This skepticism is rooted in the high-risk nature of SpaceX’s ambitious projects, which include interplanetary travel and large-scale space infrastructure development.
On the other hand, the agreements with Anthropic and Google show SpaceX can generate billions of dollars from infrastructure it already owns while it works toward those long-shot goals. This dual approach of leveraging existing assets while pursuing innovative projects may provide a more balanced risk profile for investors.
How lasting that business could be will depend on whether the shortage of AI infrastructure persists. OpenAI is working with partners through the Stargate initiative announced last year to build a large network of data centers across the U.S. to aid AI development. The competitive nature of the AI landscape could influence SpaceX's ability to maintain its market position and profitability in this sector.
Yet, for now, SpaceX has something nearly every major AI developer wants and can’t easily build fast enough. “There will probably be other third parties that would be interested in that compute because pretty much at this rate it’s a race to secure that compute capacity,” said Cray. This underscores the urgency and importance of AI compute in the current technological landscape, positioning SpaceX favorably as it continues to expand its offerings in this burgeoning market.
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