SpaceX has secured a significant computational contract with Google, as outlined in a regulatory filing released on Friday. The agreement, set to take effect in October 2026, will see Google paying SpaceX $920 million monthly through June 2029 for access to approximately 110,000 NVIDIA GPUs, CPUs, memory, and other related components.
This contract mirrors a previous arrangement made by SpaceX with Anthropic in late May, wherein Anthropic committed $1.25 billion monthly through 2029 for the entirety of the computational resources at SpaceX’s Colossus 1 data center near Memphis. Originally designed for artificial intelligence initiatives by xAI, now a part of SpaceX, this data center has become a focal point in the burgeoning AI landscape.
While the terms of the new Google deal suggest access to nearly half of what Anthropic has at Colossus 1, SpaceX has yet to specify which data center will support Google’s operations. CEO Elon Musk has previously indicated that the upcoming Colossus 2 data center may be reserved specifically for xAI, leaving questions regarding Google’s access.
Google’s position in the AI landscape is arguably more robust than that of Anthropic, which faced limitations on its compute capacity before entering its contract with SpaceX. In contrast, Google is widely recognized as one of the largest proprietors of AI computational resources. In a statement explaining the deal, a Google representative attributed the agreement to increasing demand for its new AI offerings. “Google Cloud and SpaceX are long-time partners,” the representative noted, highlighting that the deal serves as a crucial temporary arrangement to support escalating customer interest in their Gemini Enterprise platform.
The deal comes amid Alphabet’s aggressive investing strategy, which has seen the parent company already commit upwards of $180 billion in capital expenditures this fiscal year, with expectations of substantial increases in 2027. Recently, Alphabet also announced plans for an $80 billion equity sale.
Similar to the agreement with Anthropic, the deal with Google includes a cancellation provision. Both companies can terminate the agreement with a 90-day notice after December 31, 2026. The terms specify that Google’s access to computational resources will gradually increase until September at a reduced fee. Should SpaceX fail to deliver the agreed quantity of GPUs by September 30, 2026, Google retains the option to either terminate the agreement or accept a reduced number of GPUs while facing a decline in monthly fees.
The timing of this announcement is notable, occurring just a week before SpaceX is poised to begin trading on the Nasdaq exchange. Reports indicate that SpaceX aims to raise approximately $75 billion with a valuation of around $1.75 trillion, potentially marking the largest IPO in history.
As long-standing collaborators, Google holds a significant stake in SpaceX, anticipated to be worth over $100 billion post-IPO. Additionally, discussions are reportedly underway between the two companies regarding the development of orbital data centers, which are integral to SpaceX’s strategic roadmap following the IPO.
