Google will pay SpaceX $920M per month for compute

Google has signed a major compute agreement with SpaceX, committing to pay $920 million per month from October 2026 through June 2029 for access to approximately 110,000 NVIDIA GPUs and related computing infrastructure. The deal comes as Google seeks additional capacity to support growing demand for its AI products, particularly its Gemini Enterprise platform. The agreement follows a similar contract announced between SpaceX and Anthropic, highlighting SpaceX's growing role as a provider of large-scale AI computing resources. While Google already operates one of the world's largest AI infrastructures, the company said the deal will provide short-term capacity to meet unexpectedly strong customer demand. The contract includes provisions allowing either party to terminate the agreement with 90 days' notice after December 2026. Google may also cancel the deal if SpaceX fails to deliver the promised computing capacity by September 2026. The announcement comes shortly before SpaceX's anticipated IPO, where the company is reportedly seeking a valuation of around $1.75 trillion. Beyond AI computing, Google and SpaceX are also reportedly exploring future collaborations, including the development of orbital data centers.