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Google will pay SpaceX $920M per month for compute
Google will pay SpaceX $920 million monthly from October 2026 to June 2029 for access to NVIDIA GPUs and other compute resources. This deal, part of SpaceX's IPO preparations, highlights the growing demand for AI compute power, with Google aiming to meet soaring needs for its Gemini Enterprise platform, amid significant capital investments by its parent company, Alphabet.
Key points
- Google will pay SpaceX $920 million per month from Oct 2026 to June 2029.
- SpaceX will provide access to approximately 110,000 NVIDIA GPUs and related components.
- Deal mirrors a previous agreement with Anthropic, which pays $1.25 billion per month.
- Google's demand driven by AI product launches and customer demand for Gemini Enterprise.
- Alphabet has committed $180 billion in capital expenditures and plans to increase that by 2027.
- Agreement includes a cancellation clause allowing termination with 90 days notice after Dec 31, 2026.
Why it matters
- The deal reflects current trends in AI and cloud services, with rising demand for computational power.
- It coincides with SpaceX's IPO plans, which aim to raise $75 billion, marking a historic valuation.
- Similar compute partnerships have emerged, indicating a growing trend in collaborations between tech companies in AI sector.
- Previous investments by Google in SpaceX could highlight ongoing relationships shaping technology innovations.
This significant deal for compute resources underscores the escalating partnership between Google and SpaceX, driven by surging AI demands and the latter's preparations for a monumental IPO.