SpaceX has entered into a significant agreement with Google, under which Google will pay $920 million monthly for access to AI compute capacity. This deal, announced in a regulatory filing, runs from October 2026 through June 2029 and involves approximately 110,000 Nvidia GPUs, CPUs, memory, and other components housed in SpaceX's data centers. The capacity will ramp up with a reduced fee through September 2026.
The agreement is aimed at providing Google with "bridge capacity" to meet the surging demand for its Gemini Enterprise agent platform, which has exceeded initial expectations. This deal includes a clause allowing either party to terminate the agreement with 90 days' notice after December 31, 2026. Furthermore, if SpaceX fails to deliver the committed amount of GPUs by September 30, 2026, Google can terminate the agreement or accept fewer GPUs at a reduced fee after a one-month grace period.
This Google deal follows a similar, larger agreement SpaceX made with Anthropic in May, where Anthropic agreed to pay $1.25 billion per month through 2029 for compute capacity from SpaceX's Colossus 1 data center. Combined, these deals are expected to generate over $28 billion in annual revenue, significantly surpassing SpaceX's 2025 AI revenue of about $3.2 billion and its individual launch and Starlink businesses. While these contracts are substantial, analysts caution that the termination clauses mean they are not guaranteed long-term recurring revenue.
The financial implications are considerable for both companies. Alphabet, Google's parent company, has been a long-term investor in SpaceX, with its 2015 investment in the then-$12 billion company now potentially valuing its stake at over $100 billion ahead of SpaceX's anticipated IPO. SpaceX, which merged with xAI earlier in the year, is aiming for a valuation of over $1.75 trillion in its upcoming IPO, making it potentially the largest in history. Google, already a major player in AI compute, is leveraging SpaceX's infrastructure to enhance its offerings, with SpaceX poised to become one of the world's largest AI compute operators.
