Google to pay SpaceX $920M/month for 110K NVIDIA GPUs

SpaceX has secured another massive compute deal ahead of its historic IPO, this time with Google. According to a regulatory filing, 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 components. The agreement is similar in structure to the one SpaceX announced with Anthropic in May, where Anthropic agreed to pay $1.25 billion per month through 2029 for compute from SpaceX's Colossus 1 data center near Memphis. Google's deal covers about half that compute capacity, and SpaceX has not specified which data center Google will use, though CEO Elon Musk has previously indicated Colossus 2 would be reserved for xAI.

Google characterizes the deal as a short-term measure to handle surging demand for its AI products, particularly the Gemini Enterprise agent platform. This comes as Alphabet has already committed over $180 billion in capital expenditures this year and expects that to increase significantly in 2027, recently announcing an $80 billion equity sale. The agreement includes a cancellation clause: either party can terminate with 90 days' notice after December 31, 2026. Google's access ramps up through September 2026 at a reduced fee. The deal was announced just one week before SpaceX's stock is expected to trade on Nasdaq, with the company aiming to raise $75 billion at a valuation of $1.75 trillion. Google, a longtime SpaceX investor, is also reportedly in talks to build orbital data centers with the company.