Google will pay SpaceX $920 million per month for computing

SpaceX has struck 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 through June 2029 for access to “approximately 110,000 NVIDIA GPUs, central processing units, memory and other related components.”

The deal is similar in length and scope to the SpaceX deal Announce With Anthropy in late May. As part of the deal, Anthropic agreed to pay SpaceX $1.25 billion per month through 2029 to lease all available computing from the Colossus 1 data center near Memphis, Tennessee, which xAI — now part of SpaceX — originally built for its own AI efforts.

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

Anthropic was severely limited in its computing power before its deal with SpaceX, which led to it lifting usage limits on the same day the deal was announced. Google is in a completely different position, with some estimates describing it as the best in the world Largest single AI account holder.

In a statement, a Google representative described the deal as a result of unexpected demand Recently launched AI products. “Google Cloud and SpaceX have been long-time partners,” Google said in a statement. “This is a short-term and timely agreement to ensure we have the capacity to meet increased customer demand for our agent platform, Gemini Enterprise, which has been higher than we expected.”

But parent company Alphabet is experiencing a spending spree. The alphabet already has it committed to more than $180 billion in capital expenditures this year, and said it expects a “significant increase” in 2027. To help achieve that, Alphabet recently announced an $80 billion stock sale.

Also like the humanitarian deal, the agreement with Google includes an opt-out clause. SpaceX and Google each have the option to terminate the agreement with 90 days’ notice after December 31, 2026. Google’s access to the data center will increase “through September for a reduced fee,” according to the filing.

“If we fail to provide access to the committed amount of GPUs by September 30, 2026, after a one-month grace period, Google may immediately terminate the agreement or accept the number of GPUs provided” with a reduction in monthly fees, the letter said.

SpaceX announced the deal just one week before the company’s shares began trading on the Nasdaq stock exchange. Papers filed with the Securities and Exchange Commission show the company aims to raise about $75 billion at a valuation of about $1.75 trillion — making it the largest in history.

Google is a long-time investor in SpaceX. Its stake in Musk’s company is expected to be worth more than $100 billion After the IPO. And companies as well It is said SpaceX is in talks to try to build orbital data centers, a key element of SpaceX’s future plans after its IPO.