Google to Pay SpaceX $920 Million Monthly for Compute Capacity

Google and SpaceX Form Major Collaboration

In a significant development for both companies, Google has struck a deal with SpaceX, agreeing to pay a staggering $920 million per month for compute capacity. This arrangement is set to commence in October 2026 and will extend through to June 2029, as revealed in SpaceX's recent filing with the Securities and Exchange Commission (SEC).

Details of the Agreement

According to the SEC filing, the contract encompasses approximately 110,000 NVIDIA GPUs, along with CPUs, memory, and various related components necessary to support Google's burgeoning artificial intelligence (AI) platform, Gemini Enterprise. This high-value agreement also includes a termination clause, allowing either Google or SpaceX to end the contract with a 90-day notice beginning in 2027.

Google's Response to Rising Demand

Google Cloud emphasized the necessity of this agreement, citing soaring demand for their Gemini Enterprise platform. A spokesperson stated, "Google Cloud and SpaceX are long-time partners. This is a short-term, timely agreement to ensure we have bridge capacity to meet surging customer demand for our agent platform, Gemini Enterprise, which has been even higher than we expected."

Additionally, this deal highlights the strategic collaborations that are increasingly vital in the competitive tech landscape, especially as AI demand skyrockets across various industries.

SpaceX’s Expanding Revenue Streams

This lucrative contract comes ahead of SpaceX’s anticipated public offering, which has attracted considerable attention. The deal with Google comes on the heels of another monumental agreement SpaceX has with AI company Anthropic, where the latter is reported to pay $1.25 billion a month for a similar level of compute power from SpaceX’s infrastructure through May 2029.

At the heart of this agreement, SpaceX aims to effectively monetize unused computing capacity while remaining agile enough to reallocate resources for internal projects if necessary, as stated in their S-1 filing.

SpaceX did not provide additional comments regarding the latest partnership with Google.