SpaceX (SPCX) shares rose 1% overnight heading into Monday after CEO Elon Musk dismissed a report claiming the rocket and satellite company had placed a $52 billion order with Foxconn for Nvidia-powered AI servers. Musk called the report 'fake news' on X in response to a post summarizing the purported agreement, which Taiwan's Economic Daily said involved more than 13,000 server racks built around Nvidia's GB300 platform. The company is also expanding cloud capacity through arrangements involving Google and Anthropic, while discussions with the U.S. Department of Defense about supplying data-center capacity for military AI workloads were reported on Friday.
Musk Denies $52B Foxconn Server Order Report
'This is fake news,' Musk said on X in response to a post summarizing the reported agreement. Taiwan's Economic Daily said that Hon Hai Precision Industry, known as Foxconn, had secured its first contract to manufacture AI servers for SpaceX. According to the report, SpaceX was preparing to deploy more than 13,000 server racks built around Nvidia's GB300 platform. The estimated $52 billion value was based on an assumed cost of $4 million per rack rather than a disclosed contract price.
Citrini analyst Jukan said on X that Foxconn had displaced the dominance of Dell Technologies and Super Micro Computer in supplying AI server infrastructure to SpaceX. The report claimed deliveries would begin in late 2026 and continue into the first quarter of 2027. Chairman Young Liu has previously said Foxconn expects to capture more than 40% of the global AI server market, while shipments of advanced AI racks are projected to increase through the end of the year.
SPCX stock fell 5% on Friday, extending its weekly decline to 15%.
SpaceX Discusses Pentagon AI Computing Contract
A Wall Street Journal report on Friday said that SpaceX was in discussions with the U.S. Department of Defense about supplying data-center capacity worth several billion dollars for military AI workloads. The talks were said to be ongoing and could still fail to produce an agreement.
The potential Defense Department arrangement would deepen SpaceX's already extensive relationship with the U.S. military. The Pentagon relies on the company for rocket launches, satellite communications and missile-tracking systems. The military has also approved multiple tech companies, including SpaceX, Amazon, Google, Microsoft and Oracle, for classified AI-related work.
SpaceX employees have reportedly discussed selling computing capacity at prices designed to compete with established cloud and specialized AI infrastructure providers. The Pentagon is seeking funding for a new AI Arsenal initiative centered on access to high-end chips and computing resources.
SpaceX Secures Computing Arrangements with Google and Anthropic
SpaceX has explored offering computing power to outside AI customers as it seeks to compete more directly with cloud infrastructure providers such as CoreWeave. In June, SpaceX reached computing arrangements with Google and Anthropic. The Google deal covered access to about 110,000 Nvidia chips, while Anthropic secured capacity at the company's Colossus 1 data center in Memphis.
Retail Traders Express Bearish Sentiment on SPCX
On Stocktwits, retail sentiment for SPCX was 'bearish' amid a 7% rise in 24-hour message volumes. One user said, 'Shorting a Musk-led company is dangerous. Whether someone likes Elon Musk or not, his companies have a history of surprising skeptics. Good news---such as a successful Starship milestone, a major government contract, or stronger-than-expected Starlink growth---can send the stock sharply higher.'
Another user noted, 'SPCX has excess compute. Colossus is under utilized. SPCX is not filling Helios with GPUs. They have Colossus.'
SPCX stock has declined 35% over the past month.
FAQ
What did Elon Musk say about the reported $52 billion Foxconn order?
Elon Musk called the report 'fake news' on X. Taiwan's Economic Daily had reported that Foxconn secured a contract to manufacture AI servers for SpaceX involving more than 13,000 Nvidia GB300 server racks with an estimated value of $52 billion based on an assumed cost of $4 million per rack.
What computing arrangements has SpaceX made with Google and Anthropic?
In June, SpaceX reached computing arrangements with Google covering access to about 110,000 Nvidia chips. Anthropic secured capacity at SpaceX's Colossus 1 data center in Memphis. SpaceX has explored offering computing power to outside AI customers to compete with cloud infrastructure providers.
What discussions is SpaceX having with the Pentagon?
A Wall Street Journal report on Friday said SpaceX was in discussions with the U.S. Department of Defense about supplying data-center capacity worth several billion dollars for military AI workloads. The talks were ongoing and could still fail to produce an agreement.
