Key Takeaways
- SpaceX has secured a major contract with AI company Reflection AI, providing access to Nvidia GB300 processors at the Colossus 2 facility for $150 million monthly.
- The multi-year arrangement extends through 2029, representing approximately $6.3 billion in potential revenue over the contract period.
- Despite securing $2 billion in funding last October at an $8 billion valuation with Nvidia backing, Reflection AI has yet to launch any commercial products.
- Shares of SpaceX (SPCX) declined approximately 10.6% following the announcement, even as the deal promises substantial recurring income.
- The Colossus infrastructure now hosts multiple high-profile clients including Anthropic, Google, Cursor, and the newly added Reflection AI.
SpaceX (SPCX) stock experienced a significant decline of approximately 10.6% after revealing a major $6.3 billion computing agreement with Reflection AI — an artificial intelligence startup that has yet to release any commercial offerings or generate revenue.
Space Exploration Technologies Corp, SPCX
CNBC broke the story on June 22, detailing how Reflection AI will gain instant access to Nvidia GB300 processors located within SpaceX’s Memphis-based Colossus 2 data center. Monthly payments totaling $150 million commence on July 1, 2026, with the partnership extending through 2029.
If the arrangement continues for its entire duration, cumulative payments would total roughly $6.3 billion. Both parties retain the option to terminate with 90 days’ notice following an initial three-month period.
Neither SpaceX nor Reflection AI provided statements when contacted by Reuters for comment.
Reflection shared via LinkedIn that “more compute gives us more room to push the frontier on open models,” offering no additional specifics.
Expanding Client Portfolio
SpaceX has been steadily assembling an impressive lineup of major computing clients at its Colossus facilities. Anthropic secured exclusive use of Colossus 1 for approximately $1.25 billion monthly. Google subsequently committed to $920 million per month for interim capacity while constructing its proprietary data centers, with that arrangement launching in October this year and continuing through June 2029. Reflection AI now represents the fourth major client in a portfolio that emerged from nothing just twelve months ago.
Reflection AI was established in early 2024 by co-founders Misha Laskin and Ioannis Antonoglou, both previously with Google DeepMind. Laskin directed reward modeling efforts for Gemini, while Antonoglou played a key role in developing AlphaGo. The company successfully raised $2 billion last October at an $8 billion valuation, with Nvidia leading the investment round. By spring 2026, industry reports suggested the valuation could reach $20 billion. To date, no public model has been released.
The startup has branded itself as an open frontier laboratory concentrating on government and national security applications, including collaborations connected to the Department of Energy’s Genesis Mission and various Pentagon artificial intelligence initiatives.
Market Reaction Explained
Despite securing billions in guaranteed recurring revenue from a major new client, SPCX shares fell roughly 10.6% on announcement day — marking the steepest single-day decline since the company’s June 11 public debut at a $1.77 trillion market capitalization.
The market reaction surprised several industry analysts. SpaceX is receiving guaranteed, recurring payments for infrastructure assets it already possesses. The Colossus 2 agreement alone contributes $1.8 billion in annual contracted revenue. The financial fundamentals don’t clearly explain the negative market response.
Looking Ahead
The agreement features a 90-day termination provision following the initial three-month period, meaning the first critical milestone arrives around late October. Should Reflection AI choose not to invoke this exit option, the lease essentially transitions from provisional to confirmed long-term commitment.
Reflection’s LinkedIn communication mentioned advancing “open models” development. The company has not disclosed any timeline for launching public products.
SpaceX, Reflection AI, and Nvidia had not provided additional comments by publication time.
