Daijiworld Media Network - San Francisco
San Francisco, Jun 6: Google has entered into a massive cloud-services agreement with Elon Musk's SpaceX, agreeing to pay $920 million per month for computing power through mid-2029, according to a filing submitted by the company to the US Securities and Exchange Commission (SEC).
Under the agreement signed on June 5, Google will pay the monthly fee from October 2026 through June 2029, while computing capacity will gradually ramp up through September at a reduced cost. The deal covers access to approximately 110,000 NVIDIA GPUs, CPUs, memory systems and related computing components.
The SEC filing states that Google may terminate the agreement if SpaceX fails to provide access to the guaranteed NVIDIA chips by September 30, subject to a one-month grace period. After December 31, 2026, either party can end the agreement with 90 days' notice.
The announcement comes just days before SpaceX's stock is expected to begin trading on the Nasdaq exchange.
The scale of the agreement is comparable to a separate compute-capacity deal announced by SpaceX with Anthropic in late May. Under that arrangement, Anthropic agreed to pay $1.25 billion per month through 2029 to rent all available computing capacity at the Colossus 1 data centre near Memphis, Tennessee, originally built by Musk's AI venture xAI.
With both agreements in place, Google and Anthropic are expected to pay a combined $2.17 billion per month to SpaceX for AI computing infrastructure.
According to the SEC filing, Google will retain ownership and intellectual property rights over its content, AI models and related data while using the compute resources.
A Google spokesperson described the arrangement as a response to unexpectedly strong demand for the company's artificial intelligence products.
“Google Cloud and SpaceX are long-time partners,” the company said, adding that the agreement would provide bridge capacity to support growing customer demand for its agent platform and Gemini Enterprise offerings.
Google has been a long-time investor in SpaceX, and its stake in the aerospace company is expected to be worth more than $100 billion following the IPO. The two companies are also reportedly exploring plans to develop orbital data centres, a concept that forms part of SpaceX's long-term strategy. Google CEO Sundar Pichai has previously spoken about the company's interest in space-based data centre technology.