Google has entered into a major computing agreement with SpaceX, agreeing to pay $920 million per month for access to GPU infrastructure, a deal that underscores the scale of the AI compute crunch now gripping the technology industry.
SpaceX disclosed the agreement in a regulatory filing on Friday. Under its terms, Google will pay $920 million per month for access to approximately 110,000 NVIDIA GPUs, CPUs, memory, and other related components.
The agreement runs from October 2026 through June 2029, though Google's access to the data center will ramp up through September at a reduced fee. Both parties retain an exit option: SpaceX and Google each have the right to terminate the agreement with 90 days' notice after December 31, 2026.
SpaceX did not specify which data center Google would be using under the agreement. CEO Elon Musk has previously indicated that the Colossus 2 facility would be reserved for xAI. The Colossus data centers are located near Memphis, Tennessee, and were originally developed by xAI, now a part of SpaceX, for its own AI operations.
Google attributed the deal directly to AI demand outpacing expectations. A Google spokesperson described the agreement as a short-term bridge to handle surging customer demand for Gemini Enterprise, the company's agent platform, which had grown faster than anticipated. Some estimates place Google among the world's largest single owners of AI compute, making the decision to rent external capacity at this scale a notable signal of just how acute that demand pressure has become. Alphabet has already committed to more than $180 billion in capital expenditures for 2026, with further increases expected in 2027, and recently announced an $80 billion equity sale to help fund that expansion.
The deal mirrors in structure, though not in scale, a separate agreement SpaceX announced with Anthropic in late May, under which Anthropic agreed to pay $1.25 billion per month through 2029 for access to all available compute at the Colossus 1 data centre. Google's arrangement covers roughly half that amount of compute capacity. Should SpaceX fail to deliver the committed GPU access by September 30, 2026, Google may immediately terminate the agreement or accept fewer GPUs at a proportionally reduced monthly fee following a one-month grace period.
Broader Context
SpaceX announced the Google deal one week before its stock is expected to begin trading on the Nasdaq, with regulatory filings indicating the company is targeting a valuation of approximately $1.75 trillion, which would make it the largest IPO in history. Google is a longstanding investor in SpaceX, and its stake is expected to be valued at more than $100 billion following the public listing. The two companies are also reportedly in discussions about developing data centers in orbit, a key component of SpaceX's post-IPO ambitions.
