Google Signs $920 Million Monthly Deal With SpaceX for Massive AI Computing Power

Google Commits Nearly $1 Billion Per Month to SpaceX for AI Infrastructure

In a landmark agreement that underscores the surging demand for artificial intelligence computing resources, Google has struck a deal with SpaceX to rent a massive chunk of GPU capacity — at a staggering cost of $920 million per month.

The agreement was disclosed through a regulatory filing submitted on Friday. Under its terms, Google will gain access to approximately 110,000 NVIDIA GPUs, along with CPUs, memory, and supporting hardware components. Payments are set to begin in October 2026 and will continue through June 2029.

A Deal That Mirrors the Anthropic Agreement

This arrangement closely resembles a separate compute deal SpaceX finalized with AI company Anthropic just weeks earlier. In that agreement, Anthropic committed to paying SpaceX $1.25 billion per month through 2029 in exchange for access to the full computing capacity of the Colossus 1 data center, located near Memphis, Tennessee. That facility was originally constructed by xAI — now operating under the SpaceX umbrella — to support Elon Musk's own artificial intelligence ventures.

By comparison, Google's deal appears to cover roughly half the compute capacity available at Colossus 1. SpaceX has not disclosed which specific data center Google will be drawing from. Musk has previously indicated that the upcoming Colossus 2 facility would be kept in reserve for xAI's operations.

Why Google Is Turning to SpaceX for Compute

Google's situation stands in sharp contrast to Anthropic's. While Anthropic faced significant constraints on its computing capacity before partnering with SpaceX, Google is widely regarded as one of the world's largest individual owners of AI infrastructure. So why is the search giant renting capacity from a rocket company?

According to a Google spokesperson, the answer lies in unexpectedly strong demand for its latest AI products. The company described the agreement as a short-term bridge solution.

"Google Cloud and SpaceX are long-time partners," the spokesperson stated. "This is a short-term, timely agreement to ensure we have bridge capacity to meet surging customer demand for our agent platform, Gemini Enterprise, which has been even higher than we expected."

Alphabet's Broader Investment Push

The deal comes amid an aggressive capital spending campaign by Google's parent company, Alphabet. The tech giant has already pledged over $180 billion in capital expenditures for the current year, with further increases projected for 2027. To help fund that expansion, Alphabet recently announced an $80 billion equity sale — signaling that the company is preparing to dramatically scale its AI infrastructure over the coming years.

Flexibility Built Into the Contract

Like the Anthropic deal, Google's agreement with SpaceX includes a cancellation clause offering both parties an exit option. Either side may terminate the contract with 90 days' notice after December 31, 2026. Google's access to the data center will be phased in gradually through September at a reduced rate.

The filing also includes a performance provision: if SpaceX fails to deliver the agreed number of GPUs by September 30, 2026, Google may — after a one-month grace period — either immediately cancel the contract or accept whatever compute capacity is available at a proportionally lower monthly fee.

Timing Aligns With SpaceX's Historic IPO

SpaceX announced the deal just one week before its stock is expected to begin trading on the Nasdaq exchange. According to documents filed with the U.S. Securities and Exchange Commission, the company is targeting a valuation of approximately $1.75 trillion and hopes to raise around $75 billion — which would make it the largest IPO in history.

Google has been a longtime investor in SpaceX, and its stake in the company is expected to exceed $100 billion in value following the public listing. The two companies are also reported to be in exploratory discussions about developing orbital data centers, a concept that could play a significant role in SpaceX's long-term strategy as a publicly traded company.