Google Signs $30 Billion AI Compute Deal with SpaceX
Google agreed to pay SpaceX $920 million monthly for access to 110,000 Nvidia GPUs through June 2029. The $30 billion deal addresses surging demand for Google's Gemini Enterprise AI service ahead of SpaceX's anticipated IPO.
The Deal
Alphabet Inc.'s Google has agreed to pay Elon Musk's SpaceX $920 million a month for computing power as part of a cloud services deal that runs through mid-2029. SpaceX entered a multi-year agreement to provide Google with access to approximately 110,000 Nvidia GPUs for AI computing, with payments totaling around $30 billion through June 2029. Google will pay $920 million per month starting October 2026, following a ramp-up period.
Why It Matters
Google described the deal as a result of unexpected demand for its recently launched AI products, particularly its agent platform Gemini Enterprise, which has been even higher than expected. CEO Sundar Pichai said demand for AI products and services is "meaningfully exceeding our available supply". The deal signals that GPU-backed compute capacity has become a strategic asset scarce enough that even hyperscalers with their own chips and global cloud footprints are reaching outside their own infrastructure.
Contract Terms and Protections
SpaceX must deliver the committed GPU access by September 30, 2026; if it misses, Google can terminate after a grace period or accept less capacity for a lower fee. The agreement includes a cancellation clause—both SpaceX and Google have the option to terminate with 90 days' notice after December 31, 2026. Google retains ownership of its AI models, content, and related data, giving enterprise customers a clearer boundary: SpaceX supplies access to infrastructure, while Google keeps control over the models and information that run on it.
Strategic Context
SpaceX announced the deal just one week before the company's stock is expected to start trading on the Nasdaq exchange, with paperwork showing the company is aiming to raise around $75 billion at a valuation of around $1.75 trillion. The companies are also reportedly in talks to try to build orbital data centers. This deal comes after Anthropic agreed to pay SpaceX $1.25 billion per month through 2029 to rent compute from its Colossus 1 data center.