SpaceX has sealed another massive deal to rent out compute for AI — this time with Google.
As the Elon Musk-owned company gets ready for its PO the terms of the agreement were disclosed in a filing with the U.S. Securities and Exchange Commission.
It revealed that Google has committed to pay SpaceX $920 million per month for access to about 110,000 Nvidia GPUs, CPUs, memory, and other related components.
The arrangement is set to start in October and last until June 2029, according to SpaceX.
Should it fail to provide access to the agreed number of GPUs by September 30, Google will have the option to terminate the agreement with a one-month grace period or accept the number of GPUs provided and pay a reduced pro rata fee.
After Dec. 31, either party can end the agreement with 90 days’ notice. But should it run its full 32-month term, SpaceX stands to take in more than $30 billion.
The latest deal follows soon after a similar arrangement with Anthropic, which was confirmed in early May. Under the terms of that deal, the Claude creator is renting 300 megawatts of compute capacity at SpaceX’s Colossus data centers in Tennessee for $1.25 billion a month.
At the time the Anthropic deal was made public last month, SpaceX hinted that more deals were likely.
SpaceX’s IPO is expected as soon as this week, when it is seeking a valuation in the region of $1.75 trillion, and it is becoming increasingly clear that establishing itself as one of the key providers of AI infrastructure is integral to its strategy. The Financial Times calculated that the Anthropic and Google deals alone will contribute more than $26 billion to the conglomerate’s annual revenue.
SpaceX owns xAI, creator of the Grok AI model; the X social media platform; and satellite broadband provider Starlink.
Google said in a statement, “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.”
At the start of June, Google parent company Alphabet launched an equity sale of $80 billion as part of an effort to fund investments in its AI compute infrastructure.
