SpaceX is reportedly negotiating with the U.S. Department of Defense to supply billions of dollars in computing power for artificial intelligence projects. The discussions, as reported by the Wall Street Journal, aim to enhance the collaboration between Elon Musk's company and the defense agency. While the talks are ongoing, there is a possibility they may not result in a deal. SpaceX has recently signed agreements with companies like Anthropic and Google, indicating its intent to expand its cloud computing business. The company is also strategizing to offer AI computing power at competitive prices, challenging existing providers such as CoreWeave.