Elon Musk calls $52 billion Foxconn-SpaceX AI server deal 'fake news' amid compute expansion

Elon Musk responds to $52 billion deal between SpaceX and Foxconn for insane NVIDIA compute

SpaceX and Foxconn were rumored to have penned a $52 billion order for 13,000 racks of NVIDIA GB300 AI servers from the Elon Musk-led company, with each rack priced at a blistering $4 million. The deal, set to begin deliveries in Q4 2026, included up to 936,000 GPUs and would have marked a major expansion of SpaceX's AI compute footprint, which we discovered was already quite expansive when the company went public, as its compute prowess is one of the main driving factors behind its staggering $1.75 trillion IPO. Foxconn, already a key player in the AI server market, expects to capture 40 percent of the global AI server market by year-end, and reports are now stating this new contract adds a material upside to its projections. The deal also breaks the Dell/Supermicro duopoly, signaling a shift in the hyperscaler manufacturing landscape. The order is part of SpaceX's broader push to scale its Colossus data centers. Colossus 2 alone is already home to over 550,000 GPUs, and with this fresh influx of GB300s, the company is positioning itself for even more sophisticated AI training and inference workloads. It also follows a string of compute deals with Google, Anthropic, and Pentagon-linked Reflection AI. With Foxconn now in the AI server spotlight and NVIDIA's Blackwell architecture powering the next wave of AI, this order is a strategic move that could define the next phase of AI infrastructure for Foxconn and how much presence it has in the increasingly competitive AI compute market. However, none of that may even happen, as the deal hasn't been confirmed, and according to SpaceXAI CEO and founder Elon Musk, this deal is completely "fake news". To Musk's credit, SpaceX, NVIDIA, or Foxconn have not commented on the purported deal. So, until then, it should be treated as a rumor.

Elon Musk Denies Report Claiming Foxconn Won $52 Billion SpaceX AI Server Deal: 'This Is Fake News' - Spa

Report Claimed Foxconn Won $52B SpaceX AI Server Contract Musk responded to an X user who shared the report and said, "Jesus that's a lot of compute," replying, "This is fake news." Foxconn and SpaceX did not immediately respond to Benzinga's requests for clarification. AI Server Optimism Extended Beyond Foxconn "If Supermicro did that well, Dell should be incredible," Cramer said in a post on X. Dell is scheduled to report fiscal year 2027 second quarter earnings on September 3. SpaceX Is Betting on AI Infrastructure SpaceX has increasingly positioned AI infrastructure as a long-term growth business beyond rockets and Starlink, with an aim to begin demonstrating space-based AI computing infrastructure by late 2027. Musk said in May that the company was already offering AI compute "at significant scale" through an expanded partnership with Anthropic and was in discussions with other companies for similar agreements. Price Action: SPCX gained 3.08% on Tuesday at $123.54 and climbed 4.30% in extended trading. Benzinga edge rankings indicate SPCX has a negative price trend across the short, medium, and long term. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo Courtesy: Samuel Boivin on Shutterstock.com Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

SpaceX Awards Foxconn A Huge $52 Billion Order For 13,000 Racks Of NVIDIA GB300 AI Servers, Where Each Rack Costs $4 Million

SpaceX has just given Foxconn a major order for NVIDIA GB300 AI server racks, significantly upping its training- and inference-related compute footprint. Foxconn has now added SpaceX to its growing roster of hyperscaler deals According to a report by a Taiwan-based publication, SpaceX has just awarded Foxconn a $52 billion order for around 13,000 racks of NVIDIA GB300 AI servers, with shipments expected to begin in Q4 2026 and continuing until Q1 2027. Do note that each rack costs around $4 million. Do note that Foxconn expects to corner around 40 percent of the global AI server market by the end of 2026. As we reported recently, as of May 2026, SpaceX's Colossus 1 data center supported over 220,000 NVIDIA GPUs, divided between H100, H200, and around 30,000 units of the GB200 AI accelerators. Meanwhile, the Colossus 2 data center currently boasts of over 550,000 GPUs, divided between GB200 and GB300 accelerators. Do note that, in the runup to its IPO, SpaceX locked a Cloud Service Agreement with Google, furnishing it with a compute capacity equivalent to "110,000 NVIDIA GPUs, CPUs, memory, and other related components," all for a consideration of $920 million per month. Also, the parent company of Starlink and xAI recently inked a similar agreement with Anthropic, providing access to "220,000 NVIDIA GPUs (including H100S, H200S, GB200s, and others)," all for a consideration of $1.25 billion per month or $15 billion per year. While the Anthropic deal is locked to SpaceX's Colossus 1 data center, where a mish-mash of GPUs renders the data center less attractive for training future iterations of Grok AI, and where xAI consumes just 11 percent of the total available FLOPs, the Google deal is primarily tied to the Colossus 2 data center. Back in June 2026, SpaceX signed another $6.3 billion compute deal for the Colossus 2 data center, this time with Pentagon-linked Reflection. Follow Wccftech on Google to get more of our news coverage in your feeds.

Foxconn wins estimated $52 billion SpaceX AI server order - Economic Daily By Investing.com

Investing.com -- Hon Hai Precision Industry (Foxconn) (TW:2317) has secured its first contract to manufacture artificial intelligence servers for SpaceX, Taiwan's Economic Daily reported on Sunday, in a deal the newspaper estimated could be worth about $52 billion. Unlock premium AI supply chain insights and market-moving news with InvestingPro - now 60% off According to the report, SpaceX plans to deploy more than 13,000 AI server racks powered by Nvidia's GB300 chips. Based on an estimated cost of about $4 million per rack, the newspaper said the contract could be worth roughly $52 billion, marking Foxconn's first AI server manufacturing order from Elon Musk's aerospace company. The report said the award would break what it described as the previous dominance of Dell Technologies and Super Micro Computer in supplying AI servers to SpaceX, while giving Foxconn a complete roster of major North American cloud and AI infrastructure customers. Foxconn does not comment on individual customer orders, but has previously said demand for its AI server business remains strong. Chairman Liu Yangwei has forecast the company will command more than 40% of the global AI server market this year, with AI rack shipments expected to double and increase sequentially through year-end. Cloud and networking products, led by AI servers, are already the group's largest business segment. The Economic Daily said SpaceX recently increased its planned GB300 server deployment to around 13,000 racks, with deliveries expected between late 2026 and the first quarter of next year. The report also said SpaceX is expanding its AI computing infrastructure to support cloud computing services and has recently reached agreements involving Anthropic and Google, while also pursuing AI computing projects with the U.S. Department of Defense.