Google Signs $920 Million Monthly SpaceX Compute Deal
The agreement gives Google access to about 110,000 Nvidia GPUs as demand rises for Gemini Enterprise.
News
- TCS Wins Canada Life AI Services Deal
- OpenAI Adds Lockdown Mode to Limit AI Data Theft Risks
- Gemini Flaw Let Hackers Exploit Android Notifications
- AI Is Beginning to Write Its Own Future, Anthropic Says
- Data Centers Find Friendlier Ground in India, Survey Finds
- Supreme Court Proposes AI Rules for Courts, Bars Algorithm-Only Judicial Decisions
Google has signed a multibillion-dollar cloud services agreement with SpaceX to secure additional artificial intelligence computing capacity, days before Elon Musk’s company is expected to launch what could become the largest initial public offering in history.
Under the agreement, disclosed in a SpaceX regulatory filing on 5 June, Google will pay SpaceX $920 million per month from October 2026 through June 2029 for access to about 110,000 Nvidia graphics processing units (GPUs), along with CPUs, memory and related computing infrastructure.
The agreement comes as tech firms race to secure AI computing resources amid growing demand for generative AI products and services.
A Google Cloud spokesperson told Business Insider that the agreement was aimed at meeting stronger-than-expected demand for Gemini Enterprise, the company’s AI agent platform for businesses.
“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,” the spokesperson said.
The arrangement marks the second major AI infrastructure deal announced by SpaceX in recent weeks. In May, Anthropic agreed to pay $1.25 billion per month through 2029 for access to computing capacity at SpaceX’s Colossus 1 data center near Memphis, Tennessee.
The agreement gives Google access to capacity gradually before the full contract period begins. SpaceX said capacity will ramp up through September 2026 at a reduced fee.
Google also secured protections if SpaceX does not deliver the agreed GPU capacity on time. If SpaceX fails to provide access to the committed number of GPUs by 30 September, Google may terminate the agreement after a one-month grace period or accept reduced capacity with a proportionate cut in monthly fees.
After 31 December, either company may terminate the agreement with 90 days’ notice. The filing also says Google will retain ownership and intellectual property rights over its content, AI models and related data.
The deal marks the second major AI infrastructure agreement disclosed by SpaceX in recent weeks. In May, Anthropic agreed to pay SpaceX for access to computing capacity at its Colossus 1 data center near Memphis, Tennessee.
The agreements point to a widening role for AI infrastructure in SpaceX’s investor pitch as the company prepares for a listing. They also show how demand for high-end computing power is reshaping relationships among cloud companies, AI developers and owners of large data center capacity.
Google launched Gemini Enterprise Agent Platform in April as a system for businesses to build, scale, govern and optimize AI agents. The platform combines model access, agent-building tools, deployment, orchestration and security features for companies adopting agentic AI.
