SpaceX has locked in a multibillion-dollar agreement to sell computing power to Reflection, an Nvidia-backed open-source AI startup, in a deal that could reach roughly $6.3 billion if it runs its full course. The arrangement hands Reflection immediate access to high-end Nvidia GB300 hardware inside SpaceX's Colossus cluster and sets up large monthly payments after a brief ramp period. It also adds a new anchor customer to the Colossus campus near Memphis and sharpens local questions for communities, utilities and regulators already eyeing the rapid expansion of AI data centers.
According to materials reviewed by CNBC, the deal would total about $6.3 billion if Reflection keeps the capacity for the full contractual term. The reporting notes standard ramp provisions and termination windows that give both companies limited options to walk away early if things go sideways.
Axios adds detail on the monthly economics, reporting that after an initial ramp, Reflection is set to pay SpaceX roughly $150 million per month beginning July 1, 2026. In return, Reflection gets immediate access to GB300-class accelerators inside Colossus II. Axios also notes the contract includes a 90-day termination right after the first three months, a clause available to both sides if the partnership fails to meet expectations.
Colossus, Memphis and the Prospectus
SpaceX lays out the local infrastructure in its IPO prospectus. It identifies COLOSSUS as its flagship data center campus on Paul R. Lowry Road in Memphis and says COLOSSUS II expands capacity on nearby Tulane Road and across the state line in Southaven, Mississippi. The filings make clear SpaceX plans to monetize excess capacity at those campuses and that the company pairs high-density GPU racks with behind-the-meter power and water-recycling infrastructure to support gigawatt-scale training clusters, according to SpaceX.
Reflection's Rise and the Strategic Stakes
Reflection has been scaling quickly with Nvidia among its backers, and reports earlier this year put the startup in talks for a funding round that would value it near $25 billion, according to coverage that republished reporting by Reuters. That kind of valuation helps explain why an open-source lab would commit to a multibillion-dollar compute lease: locking in access to premium GPUs and racks can short-circuit a far more expensive and slower build-out of its own facilities.
Reflection has also appeared on lists of vendors cleared for certain Defense Department AI programs, a development noted by TechCrunch. That status underscores how control of frontier compute has become a national-security concern as well as a commercial one.
What Memphis Watches Next
For Memphis residents the most immediate questions are down-to-earth: will these new workloads bring jobs and investment, and what will the campus demand in power, water and emissions? SpaceX's filings describe on-site natural-gas backup generation and a water-recycling plant to support its high-density operations, and local activists and advocacy groups have already pushed for scrutiny of the buildout and permitting, as national reporting has noted.
Policymakers, utilities and neighbors will now be watching whether the Reflection contract helps stabilize SpaceX's compute revenue and whether Reflection can turn that capacity into commercially viable open models.
Bottom line: the Reflection pact highlights how high-end AI compute has become a tradeable commodity, and Memphis, home to the Colossus campus, is emerging as one of the central battlegrounds for how that commodity is priced, delivered and regulated. Expect more filings, more community pushback and a close eye on ramp schedules as both companies find out whether this giant bet lives up to its billing.
