Google Secures $920 Million Monthly Deal with SpaceX for AI Compute Resources
SpaceX has signed a significant compute deal with Google, set to begin in October 2026, ahead of its anticipated IPO. Google will pay $920 million per month for access to essential computing resources until June 2029.
In a recent regulatory filing, SpaceX revealed a compute deal with Google, which will see the tech giant pay $920 million per month from October 2026 through June 2029 for access to around 110,000 NVIDIA GPUs, CPUs, and other computing resources. This deal mirrors a previous agreement SpaceX made with Anthropic in May, where Anthropic will pay $1.25 billion per month until 2029 for similar access to SpaceX's Colossus 1 data center. However, Google's deal likely covers about half the compute capacity of the Anthropic agreement.
Google characterized this arrangement as a necessary response to an unexpected surge in demand for its AI products, specifically its Gemini Enterprise platform. A representative for Google stated, "Google Cloud and SpaceX are long-time partners. This is a short-term, timely agreement to ensure we have bridge capacity to meet surging customer demand."
Both SpaceX and Google have the right to terminate the agreement with 90 days' notice after December 31, 2026. Additionally, a provision states that if SpaceX fails to meet the GPU access commitments by September 30, 2026, Google may either terminate the agreement or accept a reduced number of GPUs at decreased fees. This announcement comes just one week before SpaceX's anticipated IPO, which aims to raise approximately $75 billion at a total valuation of about $1.75 trillion, potentially marking the largest IPO in history.
