SpaceX Secures $30 Billion Deal with Google for AI Computing Power
SpaceX has finalized a $30 billion contract with Google to provide computing power, with payments of $920 million monthly set to begin in October. This agreement positions SpaceX as a key player in the AI infrastructure market as it prepares for its impending IPO.
SpaceX disclosed in a recent regulatory filing that it has entered into a significant agreement with Google, which will pay $920 million per month for computing power, potentially amounting to $30 billion by June 2029. This deal comes as SpaceX prepares for a major initial public offering.
The agreement, effective from October, will allow Google to access approximately 110,000 A.I. chips from Nvidia, aiding the company in addressing a surge in customer demand for its A.I. models. A spokesperson for Google Cloud noted that this collaboration is a timely measure to ensure they meet the unexpected demands for their Gemini Enterprise platform.
SpaceX has also secured a similar arrangement with Anthropic, another prominent A.I. company, which is set to pay $1.25 billion per month for computing power. The financial details released by SpaceX aim to attract investors ahead of its anticipated IPO, which could value the company at over $1.7 trillion.
Elon Musk has been expanding SpaceX’s capabilities in the A.I. sector, promoting the computing power of xAI, and announcing plans for a chip factory in Texas. Additionally, in April, SpaceX revealed a $60 billion deal to acquire A.I. startup Cursor, enhancing its portfolio in the computing industry.
