SpaceX secures $920 million monthly deal with Google to enhance AI capabilities

SpaceX secures $920 million monthly deal with Google to enhance AI capabilities

Google's $30 billion deal with SpaceX will secure $920 million monthly for 110,000 GPUs, highlighting a critical short-term strategy to meet AI demands.

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In a significant move to bolster its AI capabilities, Google has entered into a $30 billion agreement with SpaceX, set to commence in October 2026 and extend until June 2029. Under this contract, Google will pay SpaceX $920 million monthly for access to computing resources from xAI's data centers, which includes 110,000 NVIDIA GPUs, CPUs, and memory.

SpaceX has stipulated in a filing that if it cannot provide the full number of GPUs by September 2026, Google retains the right to terminate the agreement or accept a reduced payment based on the number of GPUs available. This partnership aims to meet the increasing demand for Google’s Gemini Enterprise, an AI subscription service designed for large businesses.

Additionally, SpaceX is also collaborating with Anthropic, which is expected to pay $1.25 billion a month through May 2029 for access to xAI's Colossus 1 data center. SpaceX plans to launch its Initial Public Offering on June 12, 2026, with expectations of making it the largest IPO to date.

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