SpaceX major compute deal with DeepSeek

On June 22, Reflection AI, an open-source AI startup, signed a significant computing power deal with SpaceX. The agreement grants Reflection immediate access to high-powered Nvidia GB300 chips at SpaceX's Colossus 2 data center, with the startup paying SpaceX $150 million per month. This deal is valued at up to $6.3 billion over its lifespan.

This narrative impacts the AI and space technology sectors. For AI, it signals increased competition for computing resources, potentially driving up costs for other AI companies. For SpaceX, it represents a new revenue stream, diversifying its income beyond space launches and satellite services. The deal also highlights SpaceX's growing role in the tech industry, potentially attracting more tech-focused investors.

Next, watch for SpaceX's bond offering, expected to be its first investment-grade bond sale, which could provide insights into investor appetite for the company's new revenue streams. Additionally, monitor Reflection AI's progress and any announcements regarding the use of its new computing power, which could indicate the pace of advancements in open-source AI models.