In a move that underscores the escalating AI arms race, SpaceX has signed a massive cloud computing agreement with Google, according to a recent disclosure in its initial public offering (IPO) filing. The deal, signed this past Friday, positions the rocket company as a critical infrastructure provider for one of the world's leading AI developers.
Under the terms of the agreement, Google will pay SpaceX $920 million per month for access to a vast cluster of approximately 110,000 Nvidia GPUs. This cutting-edge hardware is essential for powering Google's Gemini AI models, particularly the Gemini Enterprise agent platform.
The financial impact of this deal is substantial. While a reduced fee applies during a ramp-up period, Google is slated to begin paying the full monthly rate in October 2026. With the agreement running through June 2029, total payments are estimated to reach roughly $30 billion over the life of the contract.
This strategic partnership comes at a pivotal moment for Elon Musk's venture. The IPO, scheduled for June 12, is poised to be the largest in history, with a company valuation of $1.8 trillion. This valuation reflects investor confidence in SpaceX's diverse ambitions, including the expansion of Starlink, the deployment of space-based data centers, and the long-term goal of colonizing Mars.
The Google deal mirrors a similar arrangement SpaceX struck with AI firm Anthropic, which leases capacity at the Colossus data centers in Memphis, Tennessee, for $1.25 billion a month. Interestingly, these facilities were originally developed to support xAI, Musk's separate AI venture. The IPO filing revealed that xAI faced significant challenges last year, reporting an operating loss of $6.4 billion against $3.2 billion in total revenue.
A Google Cloud spokesperson described the agreement as a "short-term, timely" measure to ensure the company has the "bridge capacity" necessary to meet surging demand for Gemini Enterprise, which has exceeded expectations. The contract includes a flexibility clause allowing either party to terminate the agreement after December 31, provided a 90-day notice is given.
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SpaceX signs blockbuster AI computing deal with Google ahead of IPO
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