Back to News
IndustryAI Understanding briefing

SpaceX expands AI infrastructure as CNBC adds stock to watch list

CNBC's Investing Club has added SpaceX to its 'Bullpen' watchlist, citing the company's aggressive expansion into AI infrastructure and significant compute capacity deals.

4 min readRead the original reporting
Source-page capture accompanying SpaceX expands AI infrastructure as CNBC adds stock to watch list
Attributed reportingSource recorded
Publisher
cnbc.com
Source type
Reporting by a news outlet — not a first-party document.

What we could not confirm independently: This claim is attributed to the named outlet. We did not verify it against a first-party document. (cnbc.com)

ContextUnderstand this in 60 seconds

Key terms

Inference
The runtime phase where a trained model generates predictions or outputs.
Compute
The processing resources required to train and run models, often measured in FLOPS or GPU hours.

What happened

CNBC's Investing Club has added SpaceX to its 'Bullpen' list of stocks to watch. The report highlights SpaceX's pivot toward becoming an AI hyperscaler, noting that the company is building out AI infrastructure in Memphis, including its 'Colossus' and 'Colossus II' supercomputers. According to the report, SpaceX has secured a deal with Anthropic, which has agreed to spend up to $120.5 billion on SpaceX capacity over the coming years. Elon Musk stated that the company expects to bring an incremental 2.5 to 3 gigawatts (GW) of compute online by the end of 2026, with plans to add another 10 GW in 2027.

CNBC's Investing Club added SpaceX to its 'Bullpen' list, noting the company's transition into an AI infrastructure provider. The company's 'SI' (Super Intelligence) segment is now its fastest-growing business, with third-quarter revenue reaching $7.56 billion.

SpaceX is currently building out AI infrastructure in Memphis, utilizing its 'Colossus' and 'Colossus II' supercomputers. The company intends to monetize this infrastructure by training its own 'Grok' model and leasing capacity to third-party AI developers.

A significant development cited is a deal with Anthropic, which has committed to spending up to $120.5 billion on SpaceX capacity over the coming years. Elon Musk has projected that the company will bring 2.5 to 3 GW of compute online by the end of 2026, with an additional 10 GW planned for 2027.

Source details: cnbc.com

Why it matters

The inclusion of SpaceX in a major financial watchlist underscores the growing market focus on the capital-intensive 'hyperscaler' model of AI development. By positioning itself as a provider of infrastructure for third-party AI firms like Anthropic, SpaceX is attempting to diversify beyond its core aerospace and satellite connectivity businesses. This strategy relies on massive, long-term capital expenditure and the ability to scale energy-intensive data centers. The reported $120.5 billion commitment from Anthropic highlights the extreme demand for compute resources among leading AI model developers, while also illustrating the financial risks associated with such large-scale infrastructure bets. Investors are now weighing these ambitious AI revenue projections against the company's high valuation and the inherent volatility of the space and AI sectors.

The report highlights the massive scale of investment required to support modern AI development. The $120.5 billion deal serves as a proxy for the intense competition among AI labs to secure the hardware necessary for training and .

SpaceX's pivot to AI infrastructure represents a strategic attempt to leverage its existing energy and engineering capabilities to capture value in the AI supply chain. However, the reliance on these projections requires significant 'leaps of faith' regarding the company's ability to execute on its massive infrastructure build-out.

The valuation of SpaceX, currently trading at a P/E multiple of 38.5 times 2027 earnings estimates, reflects high market expectations for its AI business segment. The success of this strategy is contingent on the company meeting its aggressive growth targets for capacity and revenue.

Interactive Mechanism

Interactive Mechanism: How It Actually Works

Explore the underlying technology behind this development interactively.

Model Parameter Size:8B Parameters
VRAM Required5.5 GBGPU memory footprint
Target HardwareMacBook / Single GPUDeployment tier
Privacy100% Air-GappedLocal device capability
Core takeaway: Small, quantized models (3B–8B) now run directly inside smartphones and laptops with complete data privacy, while mammoth 400B+ models remain the domain of datacenter clusters.
Interactive Concept Check+10 Points
AI Models Explained Quiz

Which component of an AI application is the machine-learning model itself?

What to watch next

Market observers should monitor the actual deployment of the reported 2.5 to 3 GW of capacity by year-end 2026 and the subsequent 10 GW in 2027. Additionally, the realization of the company's projected 'SI' (Super Intelligence) revenue—estimated to grow from $26.7 billion in 2026 to $132 billion in 2027—remains a critical metric for validating the company's current valuation. Finally, any further developments regarding a potential merger between SpaceX and Tesla, as mentioned in the CNBC report, could significantly alter the company's financial and operational trajectory.

The primary operational milestone to watch is the successful deployment of the 2.5 to 3 GW of capacity by the end of 2026. Delays in infrastructure build-out or energy procurement could impact the company's ability to meet its revenue targets.

Analysts will be closely monitoring the actual revenue generated from the 'SI' segment compared to the projected $132 billion for 2027. Any shortfall in these figures could lead to significant re-evaluations of the stock's current price-to-earnings multiple.

The potential for a merger with Tesla remains a speculative but consequential factor that could fundamentally change the company's capital structure and AI integration strategy.

Related guides & quizzes

Found this useful?