Google Strikes $920 Million Monthly Compute Deal With SpaceX

What happened

SpaceX disclosed in a regulatory filing on Friday that Google has signed a massive agreement to rent computing power. Starting in October 2026, Google will pay $920 million per month to access a fleet of approximately 110,000 NVIDIA GPUs and associated hardware components. The contract is scheduled to run through June 2029, though it includes a cancellation clause allowing either party to terminate the agreement with 90 days' notice after December 31, 2026.

What's new in this update

This deal follows a similar, larger agreement between SpaceX and Anthropic announced in late May. While Anthropic is paying $1.25 billion monthly for the full capacity of the Colossus 1 data center near Memphis, Google’s deal appears to represent roughly half that compute volume. Google characterized the move as a strategic 'bridge' to handle unexpected demand for its recently launched Gemini Enterprise agent platform, which the company says has exceeded internal expectations.

Key details

The agreement includes a ramp-up period through September 2026 at a reduced fee. If SpaceX fails to deliver the promised GPU volume by September 30, Google retains the right to terminate the contract or accept a pro-rated reduction in fees. Alphabet, Google’s parent company, is currently on an aggressive spending trajectory, having committed to more than $180 billion in capital expenditures this year and recently announcing an $80 billion equity sale to support its growth.

Background and context

Google is a long-term investor in SpaceX, with a stake expected to be worth over $100 billion following the space company's upcoming IPO. The computing resources Google is renting originated from xAI’s 'Colossus' infrastructure efforts, which were recently folded into SpaceX. SpaceX is currently seeking to raise $75 billion at a $1.75 trillion valuation, making it the most valuable private company to transition to the public markets.

What to watch next

Investors will be monitoring SpaceX’s Nasdaq debut, which is expected to occur one week after this filing. Beyond terrestrial data centers, Google and SpaceX are reportedly in talks to develop orbital data centers, a key component of SpaceX's post-IPO growth strategy. Additionally, the performance of Google's Gemini Enterprise will determine if the company extends its reliance on third-party compute or shifts back to its own expanding data center network.

Why this matters

This deal highlights the extreme global demand for AI infrastructure and provides SpaceX with a massive, guaranteed revenue stream as it prepares for the largest IPO in history.

Reader context

This story belongs to Northstar Herald's Generative AI and AI Infrastructure coverage, with related entities including Google, SpaceX, Alphabet, NVIDIA. The report is based on TechCrunch AI source material.

Related coverage

• More ai coverage
• Generative AI updates
• Earlier coverage: Apple Approves Poke as First Third-Party AI Agent for Messages for Business