- Ahead of a planned IPO, SpaceX has inked a deal to rent compute capacity to Google at $920 million per month for 32 months.
- SpaceX announced a similar arrangement with Anthropic in May.
- Google parent Alphabet has made a windfall from backing SpaceX, which was worth $12 billion at the time of its 2015 investment, and is looking to go public at a valuation of over $1.75 trillion.
Days before a planned IPO that's expected to bring in record sums of cash, SpaceX has inked a deal with
According to a regulatory
filing on Friday, Google will use about 110,000 Nvidia graphics processing units, as well as central processors, memory and other components housed in SpaceX's data center. The agreement spans from October of this year through June 2029 at the $920 million rate, and with "capacity ramping up through September at a reduced fee."
SpaceX said in the filing that if it fails to "deliver access to the committed amount of GPUs by September 30, 2026," Google can immediately end the agreement, or accept the number of GPUs provided at a reduced fee after a one-month grace period.
After this year, the agreement can be terminated by either party provided they give 90 days' notice.
It's the second massive infrastructure deal announced by SpaceX following its merger in February with xAI, Elon Musk's artificial intelligence company, in a transaction that valued the combined entity at $1.25 trillion. Last month,
Anthropic announced a deal to use all of SpaceX's compute capacity at its Colossus 1 data center in Memphis, Tennessee.
Alphabet has made a windfall from backing SpaceX. Musk's company was worth $12 billion at the time of Google's 2015 investment, and is aiming to go public next week at a valuation of over $1.75 trillion.
Musk is trying to boost SpaceX's AI story ahead of next week's
offering to show that the company is getting at least some return on its massive investment in multiple data centers in and around Memphis. SpaceX said in its prospectus that capital expenditures in the first quarter totaled $10.1 billion, more than doubling from a year earlier, with the vast majority of those costs — $7.7 billion — committed to AI.
Meanwhile, the AI segment of the business recorded an operating loss in the quarter of $2.5 billion on just $818 million in revenue. Musk has touted xAI's Grok model and chatbot as a rival to offerings from AI leaders OpenAI, Anthropic and Google, but his company's products have yet to make much of a dent in the booming market.
"We believe our compute infrastructure and related strategy provides us with substantial flexibility in how we allocate and monetize capacity," SpaceX said in a section of its IPO filing on "compute service agreements with third parties."
In the prospectus, SpaceX named Google as a competitor in connectivity, where SpaceX owns the Starlink satellite internet unit and Google has a fiber business. And in AI, Spacex said it competes with Google as well as OpenAI, Anthropic,
Meta and Microsoft.
<small>Source: CNBC</small>
Business
Google to pay SpaceX $920 million a month for compute capacity at xAI data centers
CNBC
June 05, 2026
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