Google will pay SpaceX $920 million a month for AI compute capacity housed in SpaceX's data centers, according to a filing on Friday. The agreement spans from October of this year through June 2029 at the $920 million rate, with capacity ramping up through September at a reduced fee. The deal provides Google access to about 110,000 Nvidia graphics processing units, as well as central processors, memory and other components, following SpaceX's merger in February with xAI that valued the combined entity at $1.25 trillion.
Google Commits $920 Million Monthly for SpaceX GPU Capacity Through 2029
According to the filing, Google will use about 110,000 Nvidia graphics processing units, as well as central processors, memory and other components housed in SpaceX's data center. The agreement spans from October of this year through June 2029 at the $920 million rate, with capacity ramping up through September at a reduced fee.
SpaceX Must Deliver 110,000 GPUs by September 30, 2026 Under Agreement Terms
SpaceX said in the filing that if it fails to deliver access to the committed amount of GPUs by September 30, 2026, Google can immediately end the agreement, or accept the number of GPUs provided at a reduced fee after a one-month grace period. After this year, the agreement can be terminated by either party provided they give 90 days' notice.
Anthropic Secured All Colossus 1 Data Center Compute Capacity Last Month
Last month, Anthropic announced a deal to use all of SpaceX's compute capacity at its Colossus 1 data center in Memphis, Tennessee. The Anthropic agreement represents the second massive infrastructure deal announced by SpaceX following its merger in February with xAI, Elon Musk's artificial intelligence company, in a transaction that valued the combined entity at $1.25 trillion.
Google's 2015 SpaceX Investment Gains Value Ahead of Planned IPO
Alphabet has made a windfall from backing SpaceX. Musk's company was worth $12 billion at the time of Google's 2015 investment, and is aiming to go public next week at a valuation of over $1.75 trillion.
FAQ
What is the monthly payment Google will make to SpaceX under the compute capacity agreement?
Google will pay SpaceX $920 million a month for AI compute capacity housed in SpaceX's data centers, according to a filing on Friday. The agreement spans from October of this year through June 2029 at this rate, with capacity ramping up through September at a reduced fee.
How many Nvidia GPUs will Google access under the SpaceX agreement?
Google will use about 110,000 Nvidia graphics processing units, as well as central processors, memory and other components housed in SpaceX's data center, according to the filing.
What happens if SpaceX fails to deliver the committed GPUs by September 30, 2026?
SpaceX said in the filing that if it fails to deliver access to the committed amount of GPUs by September 30, 2026, Google can immediately end the agreement, or accept the number of GPUs provided at a reduced fee after a one-month grace period.
