Google to pay SpaceX $920 million monthly for AI compute power in $30 billion infrastructure deal
11 Sources
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Google will pay SpaceX $920M per month for compute
SpaceX has lined up another compute deal ahead of its historic IPO, this time with Google. The company announced the deal in a regulatory filing on Friday Under the terms of the deal, Google will pay SpaceX $920 million per month from October 2026 through June 2029 for access to "approximately
[2]
Google and SpaceX Sign $920M-a-Month AI Deal
Google is set to pay Elon Musk's SpaceX $920 million a month in a new cloud services deal, which will give it access to some of the space exploration company's compute capacity, including 110,000 Nvidia chips. The deal will generate over $30 billion for the firm if it runs its course. The news
[3]
SpaceX lands Google AI compute deal after Anthropic pact ahead of IPO
June 5 (Reuters) - SpaceX said on Friday it has entered into a multi-year cloud services agreement with Alphabet's (GOOGL.O), opens new tab Google, locking in computing capacity as it prepares for its highly anticipated U.S. stock market debut next week. As part of the deal, Google will pay SpaceX
[4]
Google to pay SpaceX $920 million a month for compute capacity at xAI data centers
Days before a planned IPO that's expected to bring in record sums of cash, SpaceX has inked a deal with Google that will bring in $920 million a month by providing AI compute capacity to the search giant. According to a filing on Friday, Google will use about 110,000 Nvidia graphics processing
[5]
SpaceX Has $30 Billion Deal to Provide Google With A.I. Computing Power
Elon Musk's rocket company said Google would pay it $920 million a month, as it prepared for its initial public offering. SpaceX revealed in a regulatory filing on Friday that Google will pay it $920 million a month for computing power, pumping billions of dollars into Elon Musk's rocket company
[6]
Google to pay SpaceX nearly $1 billion monthly for cloud capacity
A new regulatory filing shows Google agreed to pay SpaceX about $920 million per month for access to a huge cluster of NVIDIA AI chips through mid-2029. The agreement gives Google access to roughly 110,000 GPUs and supporting hardware inside SpaceX-operated data centers. The deal could reach
[7]
Google rents SpaceX/AI supercomputers for $920M a month
Google has signed a $30 billion deal to lease computing power from SpaceX, paying $920 million per month through June 2029. The move came after SpaceX acquired xAI in February 2026, gaining massive data centres. The deal precedes SpaceX's highly anticipated IPO next week. Google has made a deal
[8]
SpaceX signs pre-IPO deal to provide AI computing to Google
Washington (United States) (AFP) - SpaceX on Friday signed a blockbuster cloud computing agreement under which Google will pay the Elon Musk-founded rocket company $920 million per month for access to a massive cluster of AI chips, according to a disclosure in its initial public offering
[9]
Google will pay Elon Musk a fortune every single month
Google has agreed to pay SpaceX about $920 million per month for large-scale computing capacity in a cloud services deal that runs through June 2029. The agreement is valued at roughly $30 billion over its full duration and is designed to help Google meet rising demand for AI workloads. The
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Why Google May Have Handed SpaceX The Perfect IPO Catalyst - Alphabet (NASDAQ:GOOGL)
Under the filing, Google will pay SpaceX $920 million per month from October 2026 through June 2029. The agreement also includes a ramp-up period before October 2026 at a reduced fee. Google Secures AI Computing Capacity Counterpoint Research analyst Neil Shah said the deal reflects the growing
[11]
Google Agrees to Pay SpaceX $920 Million Monthly for AI Compute | PYMNTS.com
Under an agreement the companies signed Friday, Google will pay that amount monthly from October through June 2029. From now through September, the company will pay a reduced fee as SpaceX ramps up capacity, according to the filing. If SpaceX fails to deliver access to the compute by Sept. 30,
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Google has signed a massive cloud services agreement with SpaceX, committing to pay $920 million per month for access to approximately 110,000 NVIDIA GPUs and related infrastructure. The deal runs from October 2026 through June 2029 and could generate over $30 billion for SpaceX, which is preparing for a historic IPO next week targeting a $1.75 trillion valuation.
Google Locks in AI Computing Power Through SpaceX Partnership
Google has secured a substantial cloud services agreement with SpaceX, committing to pay the company $920 million per month for AI compute capacity. The Google SpaceX deal, disclosed in a regulatory filing on Friday, will provide Google with access to approximately 110,000 NVIDIA GPUs, CPUs, memory, and other related components housed in SpaceX's data centers
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. The arrangement spans from October 2026 through June 2029, with capacity ramping up through September at a reduced fee3
.If the agreement runs its full course, it could generate over $30 billion in total revenue for SpaceX, positioning Elon Musk's company as a major AI infrastructure provider in an increasingly competitive landscape
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. A Google spokesperson explained that the deal "is a short-term, timely agreement to ensure we have bridge capacity to meet surging customer demand" for its agentic AI platform, Gemini Enterprise, noting that demand "has been even higher than we expected"2
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Source: Interesting Engineering
Strategic Timing Ahead of Historic SpaceX IPO
The announcement comes just one week before SpaceX's stock is expected to start trading on the Nasdaq exchange. Paperwork filed with the Securities and Exchange Commission shows the company is aiming to raise around $75 billion at a valuation of approximately $1.75 trillion, making it the largest initial public offering in history
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. The timing of this cloud services agreement strengthens SpaceX's AI narrative as it courts investors, demonstrating that its compute infrastructure can generate substantial recurring revenue.Google is a longtime investor in SpaceX, having made a sizeable investment in the firm back in 2015 when the company was worth $12 billion
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. Bloomberg estimates suggest Google owns roughly 5 percent of SpaceX, meaning its stake in the company is expected to be worth more than $100 billion after the IPO2
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Source: France 24
Second Major AI Deal Following Anthropic Agreement
This is the second massive AI computing power deal SpaceX has announced in recent weeks. In late May, Anthropic agreed to pay SpaceX $1.25 billion per month through 2029 to rent compute from one of its Colossus data centers near Memphis, Tennessee, that xAI originally built for its own artificial intelligence efforts
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. The Colossus 1 facility houses more than 220,000 Nvidia processors and provides the Claude chatbot maker with 300 megawatts of new capacity3
.On an annual basis, SpaceX's compute access deals with Anthropic and Google are worth roughly $26 billion combined. The disclosed compute-capacity agreements with both companies are worth more than $70 billion in aggregate, assuming neither contract is terminated before its scheduled end date
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. These partnerships follow SpaceX's merger with xAI, Elon Musk's artificial intelligence company, in a February transaction that valued the combined entity at $1.25 trillion4
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Termination Clauses and Performance Requirements
Both the Google and Anthropic agreements include cancellation provisions that provide flexibility for both parties. If SpaceX fails to deliver access to the committed amount of GPUs by September 30, 2026, Google has the right to immediately terminate the agreement or accept the number of GPUs provided with a corresponding pro-rata reduction in monthly fees, following a one-month grace period
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. After December 31, 2026, either SpaceX or Google may terminate the agreement by providing 90 days' notice1
.Google will retain ownership of, and all intellectual property rights in, its content, AI models and associated data under the terms of the agreement
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.Questions About Actual Utilization Rates
Despite the ambitious scale of these deals, some sources have raised questions about how much of SpaceX's available compute capacity is actually being used. In May, The Information reported that xAI was only using 11 percent of the Colossus 1 data center's compute capacity
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. This gap between available infrastructure and actual utilization could indicate either significant room for growth or potential challenges in monetizing the massive investments SpaceX has made in AI-related expenditures, which totaled almost $7.7 billion in the first quarter of the 2026 financial year alone2
.As Google's cloud business reported contracts totaling $460 billion in unfulfilled revenue as of April, the partnership with SpaceX provides crucial bridge capacity to meet immediate demand while Google continues building out its own infrastructure
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. The deal also deepens existing ties between the two companies, with Google having explored the possibility of using SpaceX as a launch partner for putting data centers in space through an effort known as Project Suncatcher5
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Source: Euronews
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