Google Signs $920 Million Deal with SpaceX for Computing Power

SpaceX has reached a major computing power agreement with Google on the eve of its historic IPO. According to official documents released on Friday, Google will pay SpaceX $920 million per month from October 2026 to June 2029. In exchange, the search giant will gain access to approximately 110,000 NVIDIA GPUs, CPUs, and other related memory components. Techcrunch.com reports .

This agreement is similar to the contract SpaceX signed with Anthropic at the end of May. Under the Anthropic deal, the company agreed to pay $1.25 billion per month for the capacity of the Colossus 1 data center in Tennessee. The contract with Google represents about half of Colossus 1's capacity, but SpaceX did not disclose which specific data center would be allocated to Google. Elon Musk had previously hinted that the Colossus 2 center would be reserved for xAI's needs.

Google representatives stated that this step is linked to the unexpectedly high demand for artificial intelligence products. "Google Cloud and SpaceX are long-standing partners. This is a short-term agreement that serves as a bridge to meet the growing demand for our Gemini Enterprise agent platform," the company said in a statement. Alphabet has allocated more than $180 billion for capital expenditures this year, and this figure is expected to rise further in 2027.

The contract also includes a termination clause: both parties may terminate the agreement with 90 days' notice after December 31, 2026. If SpaceX fails to deliver the promised number of GPUs by September 30, 2026, Google has the right to cancel the contract or reduce payments. This news was announced one week before SpaceX shares were scheduled to begin trading on the Nasdaq exchange. The company aims to raise $75 billion with a valuation of $1.75 trillion.