Google will pay SpaceX $920M per month for compute

SpaceX has struck another computer 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, CPUs, memory and other related components.”

The deal is similar in length and scope to the deal that SpaceX announced with Anthropic at the end of May. As part of that deal, Anthropic agreed to pay SpaceX $1.25 billion per month through 2029 to lease all available computing power from its Colossus 1 data center near Memphis, Tennessee, which xAI – now part of SpaceX – originally built for its own artificial intelligence efforts.

Google’s deal appears to pay for about half the amount of computing power Anthropic will have access to at Colossus 1. SpaceX did not say which specific data center Google would use. CEO Elon Musk has previously suggested that his company would reserve the Colossus 2 data center for xAI.

Anthropic was significantly limited in its computing capacity prior to the deal with SpaceX, increasing its usage limits on the same day the deal was announced. Google is in a very different position, with some estimates considering it the world’s best largest owner of AI computing.

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

But parent company Alphabet is busy publishing. Alphabet has already done that involved to more than $180 billion in capital expenditures this year and expects this to “increase significantly” by 2027. To help with that, Alphabet recently announced an $80 billion stock sale.

Like the Anthropic deal, the agreement with Google contains a cancellation clause. Both SpaceX and Google have the option to terminate the agreement with 90 days’ notice after December 31, 2026. Google’s access to the data center will be ramped up “at a reduced rate through September,” the filing said.

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

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

Google has been investing in SpaceX for years. Musk’s stake in Musk’s company is expected to be worth more than $100 billion after the IPO. So are the companies reportedly in talks to try to build orbital data centers – a key part of SpaceX’s future plans post-IPO.