SpaceX has lined up one other compute deal forward of its historic IPO, this time with Google. The corporate introduced the deal in a regulatory filing on Friday.
Underneath the phrases of the deal, Google pays SpaceX $920 million per 30 days from October 2026 by June 2029 for entry to “roughly 110,000 NVIDIA GPUs, CPUs, reminiscence, and different associated elements.”
The deal is comparable in size and scope to the one SpaceX announced with Anthropic in late Might. As a part of that deal, Anthropic agreed to pay SpaceX $1.25 billion per 30 days by 2029 to lease all of the obtainable compute from its Colossus 1 information heart close to Memphis, Tennessee that xAI — now a part of SpaceX — initially constructed for its personal synthetic intelligence efforts.
Google’s deal seems to be paying for roughly half the quantity of compute that Anthropic has entry to at Colossus 1. SpaceX didn’t say which particular information heart Google could be utilizing. CEO Elon Musk has beforehand urged his firm would reserve the Colossus 2 information heart for xAI.
Anthropic was considerably restricted in its compute capability previous to its cope with SpaceX, elevating utilization limits on the identical day the deal was introduced. Google is in a really completely different place, with some estimates naming it because the world’s largest single owner of AI compute.
In an announcement, a Google consultant described the deal on account of surprising demand for its recently launched AI products. “Google Cloud and SpaceX are long-time companions,” Google mentioned in an announcement. “This can be a short-term, well timed settlement to make sure we now have bridge capability to fulfill surging buyer demand for our agent platform, Gemini Enterprise, which has been even larger than we anticipated.”
However its mother or father firm Alphabet is on a spending spree. Alphabet has already committed to greater than $180 billion in capital expenditures this yr, and has mentioned it expects that “considerably enhance” in 2027. To assist with that, Alphabet lately introduced an $80 billion fairness sale.
Additionally just like the Anthropic deal, the settlement with Google features a cancellation clause. Each SpaceX and Google have the choice to terminate the settlement with 90 days discover after December 31, 2026. Google’s entry to the information heart will ramp up “by September at a diminished payment,” in keeping with the submitting.
“If we fail to ship entry to the dedicated quantity of GPUs by September 30, 2026, then following a one-month grace interval, Google could instantly terminate the settlement or settle for the variety of GPUs offered” with a discount within the month-to-month charges, it reads.
SpaceX introduced the deal only one week earlier than the corporate’s inventory is anticipated to begin buying and selling on the Nasdaq change. Paperwork filed with the Securities and Change Fee exhibits the corporate is aiming to boost round $75 billion at a valuation of round $1.75 trillion — making it the most important in historical past.
Google is a longtime investor in SpaceX. Its stake in Musk’s firm is anticipated to be value greater than $100 billion after the IPO. The businesses are additionally reportedly in talks to attempt to construct orbital information facilities — a significant element of SpaceX’s future plans post-IPO.
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