SpaceX Enters $920 Million Agreement with Google

SpaceX has officially struck a significant deal with Google that could generate around $920 million each month by supplying artificial intelligence computing power to the tech giant.

According to a recent regulatory filing, Google is set to utilize approximately 110,000 Nvidia graphics processing units (GPUs), along with various processors, memory, and additional components, all managed from SpaceX’s data centers. This contract is slated to run from October 2026 through June 2029.

A Google spokesperson commented, “Google Cloud and SpaceX have been long-time partners. This timely agreement is designed to ensure we can efficiently meet the surging customer demand for our Gemini Enterprise agent platform, which has surpassed our expectations.”

Google’s current investment in Elon Musk’s company is estimated to be valued at over $100 billion once it goes public.

This announcement from SpaceX comes just a week before its shares are set to trade on the Nasdaq. The company is aiming for about $75 billion in fundraising at a valuation of approximately $1.75 trillion, which, if successful, would mark the largest initial public offering ever, as detailed in SEC filings.

However, the agreement with Google includes specific cancellation clauses. Both companies can terminate the deal with a 90-day notice after December 31, 2026, after which access to Google’s data centers will be available at a discounted rate through September.

The filing noted, “If we do not deliver the promised number of GPUs by September 30, 2026, Google could, after a one-month grace period, either terminate the agreement immediately or accept the provided GPUs.”

This is the second major infrastructure arrangement that SpaceX has announced since merging with Elon Musk’s AI company, xAI, back in February. The merger brings the combined valuation of the aerospace and AI sectors to an impressive $1.25 trillion.

SpaceX stated in its IPO filing, “We believe our computing infrastructure and strategic approach give us considerable flexibility in how we allocate and monetize our capacity.”

As it competes with other large tech firms, Google is ramping up its investments in AI. In April, the company updated its capital spending forecast for the year, now estimating it will fall between $180 billion and $190 billion, an increase from a prior forecast of $175 billion to $185 billion.