Key Highlights
- SpaceX’s Chief Financial Officer Bret Johnsen disclosed a significant AI hosting agreement valued at $1.11 billion monthly, effective from December 1.
- The identity of the client remains undisclosed; this contract complements current partnerships with Anthropic and Google.
- The aerospace company demonstrates increased assurance in achieving its $100 billion annual recurring revenue objective by the close of 2026.
- Management projects terrestrial computing infrastructure will exceed two gigawatts by the conclusion of 2026, with ambitions for five to ten gigawatts throughout 2027.
- Initial orbital computing satellite launches are scheduled for next year, followed by extensive rollouts in 2028.
SpaceX has finalized another substantial AI infrastructure deal valued at $1.11 billion monthly, with services commencing December 1. Chief Financial Officer Bret Johnsen disclosed this agreement during a Thursday fireside discussion with Goldman Sachs analyst Eric Sheridan at the Goldman Sachs Communacopia and Technology Conference.
While Johnsen refrained from identifying the client, he emphasized the contract provides leadership with “even more conviction” regarding the achievement of the firm’s $100 billion annual recurring revenue milestone by year-end 2026.
This latest agreement represents approximately $13 billion in annualized recurring revenue, assuming the monthly rate remains consistent throughout a twelve-month period.
The contract supplements current arrangements with Anthropic, which committed to $1.25 billion monthly payments extending through May 2029, alongside Google’s June agreement for $920 million per month.
Space Exploration Technologies Corp., SPCX
SpaceX obtained substantial underutilized data center resources following its February merger with Elon Musk’s artificial intelligence venture xAI. This infrastructure has become the foundation for a rapidly expanding cloud computing services operation.
During last month’s Q2 earnings discussion, Johnsen informed investors that SpaceX had already secured $6.7 billion in cloud services contracts during the initial weeks of Q3 alone.
Expanding Ground-Based AI Infrastructure
SpaceX is deploying substantial capital to expand its computing capabilities. The organization invested $16 billion in AI infrastructure during Q2 2026, with management anticipating comparable expenditure levels throughout the remainder of the fiscal year.
Management forecasts its computing infrastructure will yield approximately $30 to $50 in revenue per watt during the upcoming year, with existing agreements positioned near the top of this projection range.
According to Johnsen, AI infrastructure investments may achieve payback periods under twelve months, representing a stark contrast to conventional aerospace capital expenditures.
SpaceX maintains an exclusive partnership with Nvidia for processors throughout its data center network and leverages this relationship to obtain chip allocations in a supply-constrained marketplace.
The majority of hosting agreements to date feature approximately 90-day terms with optional 90-day extensions, providing SpaceX with agility to reallocate capacity toward proprietary AI applications as necessary.
“You don’t want to get in a situation where you constrain your own products in the years to come because you were giving away the compute forever,” Johnsen said.
Space-Based Computing Represents Long-Term Strategy
The organization’s ultimate vision centers on transitioning AI computing operations into orbit. SpaceX anticipates launching its inaugural orbital computing satellites during the coming year, with comprehensive deployment scheduled for 2028.
These orbital platforms will utilize identical foundations as V3 Starlink satellites while substituting communications hardware with computing equipment and incorporating enhanced solar power generation.
The financial viability of orbital computing relies significantly on Starship achieving complete reusability. Johnsen noted that a recent test flight successfully executed a precise ocean landing of the upper stage, which was subsequently retrieved for detailed analysis.
Management anticipates an upcoming Starship mission will transport production V3 Starlink satellites, representing the inaugural revenue-generating Starship flight.
Starlink’s enterprise division continues expanding, with SpaceX now providing service-level guarantees for corporate clients and maintaining a substantial queue of airline installation requests.
The company intends to deploy a next-generation constellation of direct-to-device satellites next year, aiming for commercial mobile service comparable to 5G during the first half of 2028.
Revenue streams from the newly announced $1.11 billion monthly hosting contract are scheduled to commence December 1.
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