Key Takeaways
- CFO Bret Johnsen disclosed a substantial AI hosting agreement valued at $1.11 billion monthly, commencing December 1.
- The identity of the client remains undisclosed; this contract supplements current agreements with Anthropic and Google.
- SpaceX leadership expresses increased confidence in achieving $100 billion in annual recurring revenue by the close of 2026.
- The firm anticipates completing 2026 with more than two gigawatts of ground-based computing infrastructure, aiming for five to ten gigawatts during 2027.
- Initial orbital computing satellite launches are scheduled for next year, with substantial rollouts expected in 2028.
SpaceX has finalized another substantial AI hosting deal valued at $1.11 billion monthly, with operations beginning December 1. The announcement came Thursday from CFO Bret Johnsen during a fireside discussion with Goldman Sachs analyst Eric Sheridan at the Goldman Sachs Communacopia and Technology Conference.
While Johnsen refrained from identifying the client, he indicated the contract provides leadership with “even more conviction” regarding the company’s goal of reaching $100 billion in annual recurring revenue before 2026 concludes.
The latest contract represents approximately $13 billion in annualized recurring revenue, assuming the initial monthly payment structure continues throughout a twelve-month period.
This arrangement complements previous commitments with Anthropic, which committed to $1.25 billion monthly payments extending through May 2029, alongside Google’s $920 million per month contract established in June.
Space Exploration Technologies Corp., SPCX
SpaceX obtained substantial underutilized data center resources following its February merger with Elon Musk’s AI venture xAI. This infrastructure currently forms the foundation of a rapidly expanding cloud services operation.
During last month’s Q2 earnings discussion, Johnsen informed investors that SpaceX had already secured $6.7 billion in cloud services contracts within the opening weeks of Q3.
Expanding Ground-Based AI Infrastructure
SpaceX is making substantial investments to expand this capacity. The organization allocated $16 billion toward AI infrastructure during Q2 2026, with leadership anticipating comparable expenditure levels throughout the remainder of the year.
The firm projects its computing infrastructure will generate approximately $30 to $50 in revenue per watt in the coming year, with present agreements positioned near the top of this projection.
According to Johnsen, AI infrastructure capital investments could achieve payback periods under twelve months, distinguishing them significantly from conventional aerospace capital expenditures.
SpaceX maintains exclusive use of Nvidia processors throughout its data center facilities and credits its Nvidia partnership with helping secure chip allocations amid tight market conditions.
The majority of hosting agreements to date have featured approximately 90-day terms with supplementary 90-day extensions, providing SpaceX with adaptability to redirect capacity toward its proprietary AI offerings when 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 extended vision centers on transitioning AI computing operations into orbit. SpaceX is scheduling initial orbital computing satellite deployments for next year, with comprehensive implementation planned throughout 2028.
These orbital platforms will utilize identical frameworks as V3 Starlink satellites but replace communications technology with computing components while incorporating enhanced solar generation capacity.
The financial viability of orbital computing hinges substantially on Starship achieving complete reusability. Johnsen mentioned a recent test flight successfully executed a precise ocean landing of the vehicle’s upper stage, which was subsequently retrieved for detailed analysis.
The organization anticipates an approaching Starship mission will transport production V3 Starlink satellites, representing the initial revenue-producing Starship deployment.
Starlink’s enterprise division continues expanding, with SpaceX now providing service-level agreements for business clients alongside a substantial queue of airline installations.
SpaceX intends to deploy an advanced generation of direct-to-device satellites next year, pursuing commercial 5G-equivalent mobile connectivity during the first half of 2028.
Income from the newly announced $1.11 billion monthly hosting contract will commence December 1.
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