Elon Musk dismissed claims that Space Exploration Technologies Corp (NASDAQ:SPCX) had awarded Taiwan’s Hon Hai Precision Industry Co. Ltd. (OTC:HNHPF) or Foxconn a $52 billion contract to manufacture AI servers, saying the report was “fake news.”
Report Claimed Foxconn Won $52B SpaceX AI Server Contract
Taiwan’s Economic Daily News reported on Monday that Foxconn had secured its first AI server manufacturing contract from SpaceX to build more than 13,000 NVIDIA Corp (NASDAQ:NVDA) GB300-powered AI server racks.
Musk responded to an X user who shared the report and said, “Jesus that’s a lot of compute,” replying, “This is fake news.”
Foxconn and SpaceX did not immediately respond to Benzinga’s requests for clarification.
AI Server Optimism Extended Beyond Foxconn
Market strategist at Futurum Equities Shay Boloor, before Musk denied the report, said the contract would break what he described as a Dell Technologies Inc (NYSE:DELL) and Super Micro Computer Inc (NASDAQ:SMCI) duopoly in supplying AI servers to SpaceX, adding that a deal of the reported size would establish Foxconn as a major AI server supplier.
Separately, CNBC’s Jim Cramer said Dell could also benefit from robust AI server demand after Super Micro reported stronger-than-expected preliminary quarterly results.
“If Supermicro did that well, Dell should be incredible,” Cramer said in a post on X.
Dell is scheduled to report fiscal year 2027 second quarter earnings on September 3.
SpaceX Is Betting on AI Infrastructure
SpaceX has increasingly positioned AI infrastructure as a long-term growth business beyond rockets and Starlink, with an aim to begin demonstrating space-based AI computing infrastructure by late 2027.
The company has also explored leasing AI computing power to the U.S. government, with The Wall Street Journal reporting that SpaceX and the Pentagon have discussed an arrangement under which military and intelligence agencies would run AI models on the company’s data-center infrastructure.
Musk said in May that the company was already offering AI compute “at significant scale” through an expanded partnership with Anthropic and was in discussions with other companies for similar agreements.
Price Action: SPCX gained 3.08% on Tuesday at $123.54 and climbed 4.30% in extended trading.
Benzinga edge rankings indicate SPCX has a negative price trend across the short, medium, and long term.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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