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You are at:Home»AI»Google will pay SpaceX $920 million per month for computing
AI

Google will pay SpaceX $920 million per month for computing

techtost.comBy techtost.com6 June 202603 Mins Read
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Google Will Pay Spacex $920 Million Per Month For Computing
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SpaceX has lined up another computing 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 to 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. As part of that deal, Anthropic agreed to pay SpaceX $1.25 billion a month through 2029 to lease all available computing from the Colossus 1 data center near Memphis, Tennessee, which xAI — now part of SpaceX — had originally built for its own artificial intelligence efforts.

The Google deal appears to pay for about half the amount of computing Anthropic has access to on Colossus 1. SpaceX did not say which specific data center Google would use. CEO Elon Musk previously suggested his company would keep the Colossus 2 data center for xAI.

Anthropic was severely limited in its computing capacity before its deal with SpaceX, raising usage limits the same day the deal was announced. Google is in a very different position, with some estimates calling it global largest owner of AI computers.

In a statement, a Google spokesperson described the deal as a result of unexpected demand for its recently launched artificial intelligence products. “Google Cloud and SpaceX are long-standing partners,” Google said in a statement. “This is a short-term, timely deal to ensure we have bridge capacity to meet growing customer demand for our dealer platform, Gemini Enterprise, which has been even higher than we expected.”

But its parent company Alphabet is on a spending spree. Alphabet already has commit to more than $180 billion in capital spending this year and said it expects those to “increase significantly” in 2027. To help with that, Alphabet recently announced an $80 billion stock sale.

Like the Anthropic agreement, the agreement with Google includes a cancellation clause. Both SpaceX and Google have the option to end the deal with 90 days’ notice after Dec. 31, 2026. Google’s access to the data center will increase “through September at a reduced fee,” according to the filing.

“If we do not deliver access to the committed amount of GPUs by September 30, 2026, then after a one-month grace period, Google may terminate the agreement immediately or accept the number of GPUs provided” with a reduction in monthly fees, it said.

SpaceX announced the deal just a week before the company’s stock is expected to begin trading on the Nasdaq stock exchange. Paperwork filed with the Securities and Exchange Commission shows the company aims to raise about $75 billion at a valuation of about $1.75 trillion — making it the largest ever.

Google is a long-time investor in SpaceX. Her stake in Musk’s company is expected to exceed $100 billion after the public registration. Companies are too according to information in talks to try to create orbital data centers – a major element of SpaceX’s future post-IPO plans.

When you purchase through links in our articles, we may earn a small commission. This does not affect our editorial independence.

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