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

Elon Musk Dismisses Reported SpaceX and Foxconn Deal

A reported $52 billion deal between SpaceX and Foxconn for AI server infrastructure has been labeled fake news by Elon Musk, despite widespread media coverage suggesting the agreement would mark a significant shift in the global AI server market. According to Taiwan's Economic Daily, SpaceX allegedly planned to order more than 13,000 racks of NVIDIA GB300 AI servers from Hon Hai Precision Industry, commonly known as Foxconn, with each rack priced at approximately $4 million 4

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. Deliveries were expected to begin in Q4 2026 and continue through Q1 2027 3

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When an X user shared the report commenting on the massive compute scale, Musk responded bluntly: "This is fake news" 2

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. As of now, neither SpaceX, NVIDIA, nor Foxconn have issued official statements confirming or denying the purported agreement 1

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. Foxconn maintains its standard policy of not commenting on individual customer orders, though the company has previously stated that demand for its AI server business remains strong 4

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Breaking the Dell and Supermicro Dominance

If the deal were real, it would have represented a major disruption in the AI compute infrastructure landscape. The reported contract would have broken what observers describe as a Dell and Supermicro duopoly in supplying AI servers to SpaceX, giving Foxconn a complete roster of major North American cloud and AI infrastructure customers 4

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. Foxconn Chairman Liu Yangwei has forecast the company will command more than 40 percent of the global AI server market by year-end, with AI rack shipments expected to double and increase sequentially 4

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The timing of these reports coincides with broader optimism around AI server manufacturers. CNBC's Jim Cramer suggested that if Supermicro performed well, Dell should see incredible results, with Dell scheduled to report fiscal year 2027 second quarter earnings on September 3 2

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. Following the initial reports, SPCX gained 3.08% on Tuesday at $123.54 and climbed 4.30% in extended trading, though Benzinga edge rankings indicate the stock has a negative price trend across short, medium, and long term 2

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SpaceX's Expanding Colossus Data Centers

Regardless of this specific deal's validity, SpaceX has been aggressively expanding its AI compute footprint through its Colossus data centers. 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 3

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. Meanwhile, the Colossus 2 data center currently boasts over 550,000 GPUs, divided between GB200 and GB300 accelerators 3

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The reported order of 936,000 GPUs would have marked a major expansion of this already substantial compute prowess, which serves as one of the main driving factors behind SpaceX's staggering $1.75 trillion IPO 1

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. SpaceX has increasingly positioned AI infrastructure as a long-term growth business beyond rockets and Starlink, with aims to begin demonstrating space-based AI computing infrastructure by late 2027 2

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Confirmed Compute Deals With Major Players

What is confirmed is SpaceX's string of compute deals with major technology companies. In the runup to its IPO, SpaceX locked a Cloud Service Agreement with Google, furnishing compute capacity equivalent to 110,000 NVIDIA GPUs, CPUs, memory, and other related components for a consideration of $920 million per month 3

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. 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 for $1.25 billion per month or $15 billion per year 3

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Musk stated 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 2

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. Additionally, back in June 2026, SpaceX signed a $6.3 billion compute deal for the Colossus 2 data center with Pentagon-linked Reflection 3

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. While the Anthropic deal is locked to SpaceX's Colossus 1 data center, where xAI consumes just 11 percent of the total available FLOPs, the Google deal is primarily tied to the Colossus 2 data center 3

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