Google Signs $920 Million Monthly AI Compute Agreement With SpaceX

SpaceX has secured another major artificial intelligence infrastructure agreement ahead of its highly anticipated public offering, this time with Google. The company disclosed the arrangement in a regulatory filing released on Friday.

Under the terms of the agreement, Google will pay SpaceX approximately $920 million per month from October 2026 through June 2029 in exchange for access to around 110,000 NVIDIA GPUs, CPUs, memory systems, and related computing hardware.

The agreement mirrors, in both duration and scale, a deal SpaceX announced with Anthropic in late May. Under that arrangement, Anthropic committed to paying $1.25 billion per month through 2029 for access to the available computing resources at the Colossus 1 data centre near Memphis, Tennessee. That facility was originally developed by xAI, which now operates under the SpaceX umbrella.

Google’s agreement appears to provide access to roughly half the computing capacity available under Anthropic’s Colossus 1 arrangement. SpaceX did not specify which data centre would support Google’s workloads. However, CEO Elon Musk has previously indicated that the upcoming Colossus 2 facility would be reserved primarily for xAI’s own operations.

Unlike Anthropic, which faced compute constraints before finalising its agreement with SpaceX and subsequently expanded usage limits for customers, Google already possesses one of the world’s largest AI computing infrastructures. Industry estimates frequently place the company among the largest owners of AI hardware globally.

In a statement, a Google spokesperson described the agreement as a response to stronger-than-expected demand for the company’s AI offerings.

“Google Cloud and SpaceX are long-time partners,” the company said. “This is a short-term agreement designed to provide additional capacity as demand for our agent platform and Gemini Enterprise services has exceeded our initial expectations.”

The deal comes amid a broader spending surge by Alphabet, Google’s parent company. Alphabet has already committed more than $180 billion in capital expenditures this year and has indicated that spending is expected to rise significantly in 2027. To support those investments, the company recently announced an $80 billion equity offering.

Like the Anthropic agreement, the Google contract includes provisions allowing either party to terminate the arrangement. SpaceX and Google may cancel the agreement with 90 days’ notice after December 31, 2026.

According to the filing, Google’s access to the computing infrastructure will ramp up gradually through September 2026 at reduced pricing before reaching full capacity.

The filing also states that if SpaceX fails to provide access to the agreed number of GPUs by September 30, 2026, Google may terminate the agreement after a one-month grace period or accept a reduced allocation alongside lower monthly fees.

The announcement arrives just one week before SpaceX is expected to begin trading on the Nasdaq. Regulatory filings indicate the company aims to raise approximately $75 billion at a valuation of around $1.75 trillion, a figure that would make it the largest IPO ever completed.

Google has been a long-standing investor in SpaceX. Following the public offering, its stake in the company is expected to be worth more than $100 billion. Reports have also suggested that the two companies are discussing future projects involving orbital data centres, an initiative viewed as an important part of SpaceX’s long-term plans after becoming a public company.