Google Signs Massive Compute Deal with SpaceX for AI Powerhouse
SpaceX has landed another big compute deal ahead of its IPO, this time partnering with Google. The agreement will see Google pay SpaceX $920 million monthly from October 2026 to June 2029.
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SpaceX is set to embark on another significant venture in the tech landscape, securing a mammoth compute deal with Google ahead of its much-anticipated IPO. The partnership, announced through a regulatory filing on Friday, will see Google commit to paying SpaceX an impressive $920 million per month from October 2026 until June 2029. This substantial financial commitment underscores the growing importance of AI computing in today's technology-driven world.
Under this agreement, Google will gain access to approximately 110,000 NVIDIA GPUs, CPUs, memory, and other essential components hosted within SpaceX's data centers. The deal mirrors a similar arrangement previously made with Anthropic, where the company agreed to pay $1.25 billion per month through 2029 for all available compute from its Colossus 1 data center near Memphis, Tennessee.
While Google’s deal covers roughly half the capacity of what Anthropic has access to at Colossus 1, SpaceX hasn't specified which exact data center will be used by Google. CEO Elon Musk hinted that the Colossus 2 data center might be reserved for xAI, SpaceX's AI subsidiary.
Google is positioned as a major player in AI compute with some estimates suggesting it owns the largest single block of AI compute globally. In a statement, a Google representative attributed the deal to an unexpected surge in demand for its recently launched AI products, particularly Gemini Enterprise.
“Google Cloud and SpaceX are long-time partners,” said the company. “This is a short-term agreement to ensure we have bridge capacity to meet surging customer demand for our agent platform, Gemini Enterprise, which has been even higher than expected.”
SpaceX's financial plans remain ambitious with an estimated $180 billion in capital expenditures this year and a forecasted significant increase in 2027. To support these efforts, SpaceX recently announced an $80 billion equity sale.
The agreement between Google and SpaceX includes a cancellation clause allowing both parties to terminate the deal with 90 days' notice after December 31, 2026. Google's access will ramp up gradually through September at a reduced fee, and if SpaceX fails to provide the committed amount of GPUs by September 30, 2026, it may face penalties.
