SpaceX has closed another terrestrial AI hosting deal at about $1.11 billion a month starting 1 December 2026. The detail brings roughly $13 billion of annual recurring revenue to SpaceX with a so-far unnamed customer.
SpaceX’s CFO, Bret Johnsen, provided some basic information about the new deal, which closed just a few days ago in early September. Those details included the monthly recurrent revenue, as well as the fact that the detail will begin on 1 December 2026.In the same remarks he said SpaceX now has even more conviction in a $100 billion ARR target by year-end.
“Just earlier this month, we closed another hosting deal, and that translates into about $1.11 billion a month starting December 1st of this year, which is another roughly $13 billion of ARR that starts December 1st of this year. I would say we have even more conviction now about that $100 billion ARR target by the end of this year.”
Short Commits, Early Outs
Johnsen said the new deal uses the same structure as other recent hosting contracts: in essence a 90-day term with a 90-day out, or roughly six-month commits. That keeps the leases short enough that SpaceX can reclaim capacity for its own models when product cycles accelerate, rather than locking the whole book into long fixed terms.
He described the December deal as matching that same structure and timeline, so the early-out path is not a one-off on this contract. This flexibility is a key offering from SpaceX, and lets them host third-party loads while their product cycles have space, and then get the compute back when needed.
More Compute Capacity Ahead
On terrestrial compute, Johnsen put year-end capacity at a little over 2 GW, with a next-year deployment range of 5–10 GW. Paired with the December run-rate, that gives a concrete monthly cash figure and a deployment band for SpaceX’s terrestrial compute book, still without naming who is buying the power on this particular deal.
With SpaceX genuinely leading the AI compute build-out race, there is a lot of room and hope for improvement with Grok and Cursor products in the near future.
