SpaceX Signs $1.11B-a-Month AI Hosting Deal

SpaceX disclosed a compute-hosting agreement that will begin Dec. 1 at $1.11 billion per month for an undisclosed customer, a figure that annualizes to roughly $13.3 billion, CFO Bret Johnsen told attendees at the Goldman Sachs Communacopia + Technology Conference.

Johnsen noted the company already hosts about $1.25 billion a month for Anthropic and roughly $920 million a month for Google. SpaceX reported approximately $6.7 billion in cloud-services revenue in the second quarter and has reported roughly $16 billion in AI infrastructure spending.

Company officials did not identify the new customer or the contract length. Johnsen said most of SpaceX’s compute agreements include provisions that allow either party to terminate relatively quickly.

Analysts responded with differing price targets. Pivotal Research initiated coverage on Sept. 8 with a Buy rating and a $220 target, about 49% above the stock’s trading level near $148. Oppenheimer raised its target to $280 from $250, citing SpaceX’s access to capital, data and Nvidia GPUs. Piper Sandler kept a Neutral rating and a $140 target, pointing to uncertainty over how long customers will remain and to a growing number of tradable shares.

Pivotal analyst Jeffrey Wlodarczak highlighted a separate operational question tied to Starship reusability. He estimated a reusable Starship would need roughly 20 to 50 flights with low-cost, rapid refurbishment to support the economics embedded in current valuations and warned that without reliable reusability SpaceX could become “a different and much smaller company.”

Piper Sandler estimated SpaceX’s fiscal 2027 capital expenditures could reach about $65 billion as the company expands AI infrastructure, Starship development and Starlink capacity. Management has set an internal goal to exit 2026 at a $100 billion annualized revenue run rate.

Analysts said the short termination windows in hosting agreements mean the $13.3 billion annualized figure should not be treated as guaranteed revenue. They added that future revenue will depend on contract duration, pricing, utilization and the availability of large-scale GPU capacity.