SpaceX Plans to Expand AI Compute Capacity to 10 Gigawatts with a Potential $500 Billion Investment
SpaceX is preparing to significantly expand its AI compute capacity from 1.4 gigawatts to between 6 and 10 gigawatts. The administration announced that the company is positioning itself to spend between $300 billion and $500 billion in 2027 alone to build out this infrastructure. This expansion is driven by high return on investment margins, such as Anthropic's 85% gross margin on its Opus 4.8 model. To achieve this, SpaceX has secured major deals with Anthropic and Google. The company rented out 300 megawatts of compute capacity to Anthropic for $1.25 billion per month, and a deal with Google to rent out 110,000 GPUs for $920 million per month starting in 2026. These high payoffs are encouraging hyperscalers like Microsoft and Google to build aggressively. However, experts warn of a potential 'bullwhip' risk where supply might eventually outpace demand or capacity constraints at Taiwan Semiconductor may cause a correction in AI infrastructure stocks.