SpaceX has signed a major cloud computing agreement with Google, under which Google will pay SpaceX $920 million per month for access to a large cluster of AI chips, according to SpaceX's initial public offering filing [1]. The deal involves approximately 110,000 Nvidia GPUs, which are essential for powering Google's Gemini AI models [1]. Google will begin paying the full monthly rate in October 2026, with a reduced fee during a ramp-up period until then [1]. The agreement is set to run through June 2029, resulting in total payments of roughly $30 billion over the contract's duration [1].
The filing also notes that the agreement may be terminated by either party after December 31, with 90 days' notice [1]. This deal is similar to a previous arrangement with AI company Anthropic, where SpaceX leased compute capacity at its Colossus data centers in Memphis, Tennessee for $1.25 billion a month [1]. These facilities were initially built to support Musk's AI venture, xAI [1].
SpaceX's IPO filing revealed that xAI posted an operating loss of $6.4 billion on total revenue of $3.2 billion last year [1]. A Google Cloud spokesperson described the agreement as 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' [1].
The deals with Google and Anthropic come just days before SpaceX's IPO, which is expected to be the largest in history, valuing the company at $1.8 trillion [1]. This valuation is based on expectations that Elon Musk will expand the Starlink satellite business, launch data centers into space using SpaceX rockets, and pursue Mars colonization [1].
CONCLUSION
SpaceX's $30 billion AI cloud deal with Google significantly strengthens its financial position ahead of its record-setting IPO. The agreement highlights surging demand for AI infrastructure and positions SpaceX as a key player in the cloud computing market. Investors are likely to view this deal as a positive catalyst for SpaceX's future growth and valuation.