Google will pay SpaceX $920M per month for compute

SpaceX announced a deal with Google in a regulatory filing on Friday. Google will pay SpaceX $920 million per month from October 2026 through June 2029 for access to approximately 110,000 NVIDIA GPUs, CPUs, memory and other related components. The deal is similar in length and scope to the one SpaceX announced with Anthropic in late May. As part of that deal, Anthropic agreed to pay SpaceX $1.25 billion per month through 2029 to rent all the available compute from its Colossus 1 data center near Memphis, Tennessee. Google's deal appears to be paying for roughly half the amount of compute that Anthropic has access to at Colossus 1. SpaceX did not say which specific data center Google would be using. In a statement, a Google representative described the deal as a result of unexpected demand for its recently launched AI products. Google Cloud and SpaceX are long-time partners, the representative said. Alphabet has already committed to more than $180 billion in capital expenditures this year and has said it expects that to significantly increase in 2027. The company recently announced an $80 billion equity sale. The agreement with Google includes a cancellation clause allowing both parties to terminate with 90 days notice after December 31, 2026. Google's access to the data center will ramp up through September at a reduced fee. If SpaceX fails to deliver access to the committed amount of GPUs SpaceX announced the deal one week before the company's stock is expected to start trading on the Nasdaq exchange. The company is aiming to raise around $75 billion at a valuation of around $1.75 trillion. Google is a longtime investor in SpaceX and its stake in the company is expected to be worth more than $100 billion after the IPO. The companies are reportedly in talks to try to build orbital data centers.