SpaceX has coated up every other compute deal forward of its ancient IPO, this time with Google. The corporate introduced the deal in a regulatory submitting on Friday.
Below the phrases of the deal, Google pays SpaceX $920 million per 30 days from October 2026 via June 2029 for get right of entry to to “roughly 110,000 NVIDIA GPUs, CPUs, reminiscence, and different comparable parts.”
The deal is identical in duration and scope to the only SpaceX introduced with Anthropic in overdue Might. As a part of that deal, Anthropic agreed to pay SpaceX $1.25 billion per 30 days via 2029 to hire all of the to be had compute from its Colossus 1 information heart close to Memphis, Tennessee, that xAI — now a part of SpaceX — initially constructed for its personal synthetic intelligence efforts.
Google’s deal seems to be paying for more or less part the quantity of compute that Anthropic has get right of entry to to at Colossus 1. SpaceX didn’t say which particular information heart Google can be the use of. CEO Elon Musk has in the past instructed his corporate would reserve the Colossus 2 information heart for xAI.
Anthropic used to be considerably restricted in its compute capability previous to its take care of SpaceX, elevating utilization limits at the identical day the deal used to be introduced. Google is in an overly other place, with some estimates naming it as the sector’s greatest unmarried proprietor of AI compute.
In a observation, a Google consultant described the deal because of sudden call for for its lately introduced AI merchandise. “Google Cloud and SpaceX are long-time companions,” Google mentioned in a observation. “It is a non permanent, well timed settlement to verify now we have bridge capability to fulfill surging buyer call for for our agent platform, Gemini Endeavor, which has been even upper than we anticipated.”
However its mother or father corporate Alphabet is on a spending spree. Alphabet has already dedicated to greater than $180 billion in capital expenditures this yr and has mentioned it expects that to “considerably building up” in 2027. To lend a hand with that, Alphabet lately introduced an $80 billion fairness sale.
Additionally just like the Anthropic deal, the settlement with Google features a cancellation clause. Each SpaceX and Google be able to terminate the settlement with 90 days’ realize after December 31, 2026. Google’s get right of entry to to the knowledge heart will ramp up “via September at a discounted rate,” in line with the submitting.
“If we fail to ship get right of entry to to the dedicated quantity of GPUs by means of September 30, 2026, then following a one-month grace length, Google would possibly straight away terminate the settlement or settle for the collection of GPUs supplied” with a discount within the per thirty days charges, it reads.
SpaceX introduced the deal only one week sooner than the corporate’s inventory is anticipated to begin buying and selling at the Nasdaq trade. Bureaucracy filed with the Securities and Alternate Fee displays the corporate is aiming to lift round $75 billion at a valuation of round $1.75 trillion — making it the most important in historical past.
Google is an established investor in SpaceX. Its stake in Musk’s corporate is anticipated to be price greater than $100 billion after the IPO. The corporations also are reportedly in talks to take a look at to construct orbital information facilities — a significant part of SpaceX’s long run plans post-IPO.
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