Google Agrees To Pay SpaceX $920 Million A Month For Compute Through June 2029

Google agreed to pay SpaceX $920 million a month for three years to use the company’s computing power, according to an agreement filed with the Securities and Exchange Commission.

The deal begins in October and runs through June 2029, with capacity ramping up through September at a reduced fee, and the agreement says the compute capacity includes approximately 110,000 NVIDIA GPUs, CPUs, memory and other related components.

Benzinga

SpaceX owns two Colossus supercomputer centers in Memphis and another on the way in Mississippi after the company merged with xAI earlier this year, and Anthropic recently announced it will lease SpaceX’s Colossus 1 computer in southwest Memphis.

The agreement arrives one week before SpaceX’s anticipated initial public offering on the Nasdaq, which is expected to be the largest-ever stock market debut, putting Elon Musk on course to be a trillionaire.

SpaceX said in its SEC 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, and Google will retain ownership of its content, AI models and associated data.

Business Insider

A Google Cloud spokesperson told CNBC by email that the deal was made "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."

In a statement, Google described the arrangement as "This is a short-term, timely agreement to ensure we have bridge capacity to meet surging customer demand" for Gemini Enterprise, and TechCrunch said the deal is similar in length and scope to the one SpaceX announced with Anthropic in late May.

The Google compute contract follows Anthropic’s $1.25 billion-per-month deal announced in May 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.

“SpaceX has added another lucrative deal to its revenue stream just ahead of its anticipated IPO”

Business Insider

SpaceX’s push into large-scale compute leasing builds on its February merger with xAI, and the WREG report says SpaceX is set for an IPO next week that could be the largest-ever stock market debut.

Alphabet has committed more than $180 billion in capital expenditures this year and expects that figure to rise significantly in 2027, and Blockspace Media said the contract arrives days after Alphabet announced an $80 billion equity capital raise to fund AI infrastructure spending.

CNBC reported that SpaceX said in its prospectus that capital expenditures in the first quarter totaled $10.1 billion, with $7.7 billion committed to AI, while the AI segment recorded an operating loss of $2.5 billion on $818 million in revenue.