Google to pay SpaceX $920 million monthly for AI compute capacity in $30 billion deal

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 110,000 NVIDIA GPUs, CPUs, memory, and other related components." The deal is similar in length and scope to the one SpaceX announced with Anthropic in late May. Anthropic has 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 -- now part of SpaceX -- originally built for its own artificial intelligence efforts. Also like the Anthropic deal, the agreement with Google includes a cancellation clause. Both SpaceX and Google have the option to terminate the agreement with 90 days notice after December 31, 2026. SpaceX announced the deal just one week before the company'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 around $1.75 trillion -- making it the largest in history. Google is a longtime investor in SpaceX. Its stake in Musk's company is expected to be worth more than $100 billion after the IPO. This story is developing. Check back for updates.

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 $920 million monthly from October this year to June 2029, with capacity ramping up through September at a reduced fee, Elon Musk's space venture said in a regulatory filing. The compute capacity provided includes about 110,000 ⁠Nvidia (NVDA.O), opens new tab GPUs, CPUs, memory and other related components. The pact brings another high-profile customer to SpaceX, after Anthropic, strengthening its AI narrative as it targets a $75 billion raise in its upcoming initial public offering. Anthropic said in May it had reached a deal to use the full computing power of SpaceX's Colossus 1 facility in Memphis, Tennessee, which houses more than 220,000 Nvidia processors and will give the Claude chatbot maker 300 megawatts of new capacity within a month. On an annual basis, ⁠SpaceX's compute access deals with Anthropic and Google are worth roughly $26 billion combined. SpaceX's disclosed compute-capacity agreements with Anthropic and Google are worth more than $70 billion in aggregate, assuming neither contract is terminated before its scheduled end date. If SpaceX does not provide access ⁠to the agreed number of GPUs by September 30, then, after a one-month grace period, "Google may immediately terminate the agreement or accept the number of GPUs provided, with a ⁠corresponding pro-rata reduction in the monthly fees," the company said. After December 31, either party may terminate the agreement by providing 90 days' notice. Google will ⁠retain ownership of, and all intellectual property rights in, its content, AI models and associated data. Reporting by Juby Babu in Mexico City; Editing by Shilpi Majumdar Our Standards: The Thomson Reuters Trust Principles., opens new tab

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 units, as well as central processors, memory and other components housed in SpaceX's data center. The agreement spans from October of this year through June 2029 at the $920 million rate, and with "capacity ramping up through September at a reduced fee." SpaceX said in the filing that if it fails to "deliver access to the committed amount of GPUs by September 30, 2026," Google can immediately end the agreement, or accept the number of GPUs provided at a reduced fee after a one-month grace period. After this year, the agreement can be terminated by either party provided they give 90 days' notice. It's the second massive infrastructure deal announced by SpaceX following its merger in February with xAI, Elon Musk's artificial intelligence company, in a transaction that valued the combined entity at $1.25 trillion. Last month, Anthropic announced a deal to use all of SpaceX's compute capacity at its Colossus 1 data center in Memphis, Tennessee. Alphabet has made a windfall from backing SpaceX. Musk's company was worth $12 billion at the time of Google's 2015 investment, and is aiming to go public next week at a valuation of over $1.75 trillion.

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 as it prepares for a blockbuster initial public offering. The agreement, which starts in October and runs through June 2029, could earn SpaceX about $30 billion in total. It also helps establish SpaceX -- which owns Mr. Musk's artificial intelligence lab, xAI -- as a major infrastructure provider as companies compete in a fierce global race to dominate A.I. As part of the agreement, Google will gain access to about 110,000 A.I. chips from Nvidia, which Google said would help it meet larger-than-expected customer demand for its A.I. models. The tech giant said in April that its cloud business had contracts totaling $460 billion that had yet to be fulfilled as revenue, indicating enormous demand for its services. "Google Cloud and SpaceX are longtime partners," a Google Cloud spokesman said in a statement. "This is a short-term, timely agreement to ensure we have bridge capacity to meet surging customer demand for our agent platform, Gemini Enterprise, which has been even higher than we expected." SpaceX did not immediately respond to a request for comment. SpaceX reached a similar deal last month to provide Anthropic, another leading A.I. lab, with computing power. Anthropic, which is also expected to go public this year, is paying SpaceX $1.25 billion a month. SpaceX is expected to go public next week in a deal that could value the company at more than $1.7 trillion and make Mr. Musk a trillionaire. As part of that process, the company has shed more light on its financial details in recent weeks to entice investors. Mr. Musk has built a massive supercomputer in Memphis to power xAI. But the company has largely lagged behind competitors like OpenAI, Anthropic and Google. In the run-up to SpaceX's going public, Mr. Musk has increasingly leaned into A.I. He has promoted xAI's computing power as an asset, demonstrating that it can be turned into revenue through deals with Anthropic and Google. Mr. Musk has also announced details of a giant chip factory he's building in Texas. And in April, SpaceX announced a $60 billion deal to acquire the A.I. start-up Cursor, which makes a code-writing assistant. The deal with Google deepens ties between the search giant and the rocket maker. Google owns a roughly 5 percent stake in SpaceX, and has explored the possibility of using SpaceX as a launch partner as Google seeks to put data centers in space, an effort known as Project Suncatcher.

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 nearly $30 billion over its full term. It also strengthens SpaceX's growing role in the AI infrastructure market just days before its expected Nasdaq debut. Growing AI demand Google plans to begin full monthly payments in October 2026. A lower pricing structure will apply during the system ramp-up period through September. The filing states that SpaceX must deliver the agreed computing capacity by Sept. 30, 2026. If the company misses that deadline, Google can terminate the agreement after a one-month grace period. Google may also choose to accept reduced GPU capacity in exchange for lower monthly fees. A Google Cloud spokesperson described the agreement as a temporary measure to support rising demand for Gemini Enterprise services. "This is a short-term, timely agreement to ensure we have bridge capacity," the spokesperson said. The company added that customer demand exceeded internal forecasts. The agreement highlights how even the world's largest tech firms now face pressure securing enough AI hardware. NVIDIA GPUs remain the most critical resource for training and operating large AI models.

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 filing. The deal, which will bolster SpaceX's finances ahead of its IPO on June 12, covers a computing infrastructure of approximately 110,000 Nvidia GPUs -- the crucial hardware needed to power Google's Gemini AI models. The filing says Google will begin paying the full monthly rate in October 2026, with a reduced fee applying during a ramp-up period until then. The agreement runs through June 2029, implying total payments of roughly $30 billion over the life of the contract. The deal resembles one struck with AI giant Anthropic, in which SpaceX leased compute capacity at its Colossus data centers in Memphis, Tennessee for $1.25 billion a month. The facilities were originally built to power Musk's rival AI venture, xAI. SpaceX's IPO filing revealed that xAI last year posted an operating loss of $6.4 billion on total revenue of $3.2 billion. "This is a short-term, timely agreement to ensure we have bridge capacity to meet surging customer demand for our agent platform, Gemini Enterprise, which has been even higher than we expected," a Google Cloud spokesperson said in an email to AFP. The filing adds that after December 31, "the agreement may be terminated by either party upon 90 days' notice." The deals with Google and Anthropic come just days ahead of SpaceX's IPO, which will be the biggest in history, valuing the company at $1.8 trillion. That valuation is largely based on faith that Musk can deliver on his ambitions to vastly expand his Starlink satellite business, put data centers into space using SpaceX rockets, as well as begin colonizing Mars.

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, then, after a one-month grace period, Google can terminate the agreement or accept the available compute at a reduced fee. In addition, after Dec. 31, either company can terminate the agreement with 90 days' notice, per the filing. "The compute capacity provided includes approximately 110,000 Nvidia GPUs, CPUs, memory and other related components," SpaceX said in the filing. CNBC reported Friday that a Google spokesperson said the company made the deal "to ensure we have bridge capacity to meet surging customer demand for our agent platform, Gemini Enterprise, which has been even higher than we expected." This news came two days after Google parent company Alphabet said it increased a record-breaking stock offering to expand its AI infrastructure. The company said Wednesday (June 3) that it planned to raise $84.75 billion in equity capital. That was an increase from the $80 billion it announced two days before that. When Alphabet first announced the equity offerings on Monday (June 1), the company said in a press release that the demand for its AI solutions and services is exceeding its available supply. "By scaling its investments, the company seeks to expand its foundational infrastructure to support the significant growth opportunity ahead," Google said in a Monday press release. Meanwhile, SpaceX's SpaceXAI business announced May 6 that it signed an agreement with Anthropic to provide that company access to SpaceXAI's AI supercomputer Colossus 1. Later, in its May 20 registration statement for an initial public offering, SpaceX said that Anthropic agreed to pay it $1.25 billion per month through May 2029, with a reduced fee for May and June as the capacity ramps up. PYMNTS reported May 21 that in the registration statement, SpaceX signaled that the coming AI economy will be one through ownership of AI infrastructure. For all PYMNTS AI and digital transformation coverage, subscribe to the daily AI and Digital Transformation Newsletters.