Key Takeaways
- Reflection AI has secured access to Nvidia GB300 processors at SpaceX’s Colossus 2 facility through a deal valued at $150 million monthly.
- The contract extends through 2029, potentially generating approximately $6.3 billion over its complete duration.
- Despite having no commercial product or revenue stream, Reflection AI secured $2 billion in funding last October at an $8 billion company valuation, with Nvidia as a key backer.
- Following the announcement, SpaceX shares (SPCX) declined approximately 10.6%, even though the contract represents significant recurring income.
- The Memphis-based Colossus data center now hosts Anthropic, Google, Cursor, and Reflection AI as major clients.
Shares of SpaceX (SPCX) experienced a decline of approximately 10.6% following confirmation of a $6.3 billion computing agreement with Reflection AI — an artificial intelligence startup that has yet to launch a commercial product or generate revenue.
Space Exploration Technologies Corp, SPCX
CNBC broke the story on June 22. According to the arrangement, Reflection AI gains immediate access to Nvidia GB300 processors located at SpaceX’s Colossus 2 Memphis facility. Monthly installments of $150 million commence on July 1, 2026, with the contract extending through 2029.
If executed in full, the agreement would generate roughly $6.3 billion in total revenue. Both parties retain the right to terminate with 90 days’ notice following an initial three-month period.
Neither SpaceX nor Reflection AI provided statements to Reuters when contacted for comment.
Reflection shared via LinkedIn that “more compute gives us more room to push the frontier on open models,” offering no additional specifics.
Expanding Client Portfolio
SpaceX has been steadily assembling an impressive lineup of major computing clients at its Colossus facilities. Anthropic secured exclusive access to Colossus 1 through a contract worth approximately $1.25 billion monthly. Google subsequently committed $920 million per month for interim capacity while constructing its own infrastructure, with that arrangement launching in October and continuing through June 2029. Reflection represents the fourth major client in a portfolio that didn’t exist twelve months ago.
Reflection’s founding team includes Misha Laskin and Ioannis Antonoglou, who launched the company in early 2024 after departing from Google DeepMind. Laskin previously directed reward modeling efforts for Gemini, while Antonoglou gained recognition as a co-creator of AlphaGo. The startup’s October funding round, spearheaded by Nvidia, brought in $2 billion at an $8 billion valuation. By spring 2026, industry reports suggested valuations approaching $20 billion. No public model has been released to date.
The startup has branded itself as an open frontier laboratory concentrating on government and defense sector applications, including projects connected to the Department of Energy’s Genesis Mission and various Pentagon artificial intelligence initiatives.
Understanding the Share Price Decline
Despite securing billions in guaranteed recurring income from an additional tenant, SPCX shares fell roughly 10.6% on announcement day — marking the sharpest single-session decline since the company’s June 11 public debut at a $1.77 trillion market capitalization.
The market reaction surprised several industry observers. SpaceX is receiving committed, predictable payments against existing infrastructure assets. The Colossus 2 contract alone contributes $1.8 billion in annual contracted revenue. This financial profile doesn’t provide an obvious rationale for the selloff.
Future Outlook
The agreement incorporates a 90-day termination provision following the initial three-month window, positioning late October as the first critical milestone. Should Reflection choose not to exercise that exit option, the lease effectively transitions from tentative to confirmed long-term commitment.
Reflection’s LinkedIn announcement mentioned advancing “open models” frontier work. The company has not announced a timeline for any public product release.
SpaceX, Reflection AI, and Nvidia had not provided additional comments by publication time.
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