SpaceX signs computing power deal with open-source AI startup Reflection worth up to $6.3 billion

SpaceX has made headlines by entering into a significant computing power contract with the open-source artificial intelligence startup Reflection. This partnership allows Reflection to leverage SpaceX's advanced Colossus infrastructure, which is designed to support cutting-edge AI technologies. Under the terms of the deal, Reflection will have immediate access to high-performance Nvidia GB300 chips, essential for training and executing sophisticated AI models. The agreement is set to commence on July 1, 2026, with Reflection committing to pay SpaceX $150 million monthly until 2029. If the contract remains intact until its conclusion, the total value could reach approximately $6.3 billion. Notably, either party can terminate the agreement with a 90-day notice period after the initial three months. This collaboration underscores SpaceX's strategic use of its expansive data center operations, which have expanded significantly following the company's successful initial public offering. The Colossus infrastructure was initially developed to support Grok, an AI chatbot created by Elon Musk. Now, SpaceX is extending its capabilities to provide computing power to external AI firms. Reflection marks the latest addition to SpaceX’s growing list of clients, which already includes notable companies like Anthropic, Google, and Cursor. This partnership is particularly significant as Reflection focuses on open-source AI models, a sector gaining traction as organizations reassess the risks of relying on proprietary systems. The timing of this agreement is particularly relevant, given the recent shift in focus toward open-source solutions following Anthropic's decision to restrict access to certain models. This has raised concerns regarding the dependency on closed AI systems for essential operations. Reflecting on this shift, a spokesperson for Reflection emphasized the growing importance of open-source models, stating that more nations and businesses are recognizing the limitations and hazards of relying solely on proprietary offerings. With this agreement, Reflection aims to boost its computational capacity to promote what it terms "American open intelligence." Although the startup has not yet unveiled a public frontier open-source model, it is making strides with governmental and national security projects, including collaborations with the Department of Energy. For SpaceX, this deal highlights the strategic value of computing power in the competitive AI landscape. Access to advanced Nvidia chips has become a crucial factor for organizations seeking to develop and deploy leading-edge AI models. By opening Colossus to external clients, SpaceX positions itself alongside cloud service providers and AI infrastructure firms, all vying for limited graphics processing unit resources. This move not only enhances SpaceX's narrative in the AI and data center domain but also captures the attention of investors eager to see the company diversify beyond its traditional ventures in rocketry and satellite internet services.