Google to Pay SpaceX $920M Monthly for AI Compute Access
Original: Google will pay SpaceX $920M per month for compute
Why This Matters
Major cloud computing deal demonstrates growing AI infrastructure demands and revenue diversification
Google announced it will pay SpaceX $920 million per month from October 2026 through June 2029 for access to approximately 110,000 NVIDIA GPUs and related compute infrastructure, as SpaceX prepares for its historic IPO.
SpaceX revealed the deal in a regulatory filing ahead of its anticipated IPO. The agreement provides Google access to roughly half the compute capacity that Anthropic secured in a separate $1.25 billion monthly deal with SpaceX's Colossus 1 data center. Google described the arrangement as addressing unexpected demand for its AI products, particularly Gemini Enterprise. The deal includes a 90-day cancellation clause after December 2026, with access ramping up through September at reduced fees. SpaceX must deliver the committed GPU access by September 30, 2026, or face potential termination. This comes as Alphabet commits over $180 billion in capital expenditures this year, with plans to significantly increase spending in 2027. Google is a longtime SpaceX investor, with its stake expected to be worth over $100 billion after the IPO.