SpaceX signs cloud deal with Google worth $920 million a month

SpaceX deepened its turn from launch provider to computing infrastructure supplier on Friday, signing a multi-year cloud-services agreement with Alphabet’s Google that will pay the company $920 million a month from October 2026 through June 2029. The deal, entered into the same day SpaceX filed Amendment No. 2 to its registration statement, gives Elon Musk’s company another giant customer just as it prepares for a closely watched stock-market debut.

The agreement covers roughly 110,000 Nvidia GPUs, plus CPUs, memory and related components, and it ramps up through September at a reduced fee before the full monthly payments begin. If SpaceX misses its GPU-delivery commitment by September 30, 2026, Google can walk away after a one-month grace period or accept fewer GPUs with a lower pro rata fee. After December 31, 2026, either side can terminate the contract with 90 days’ notice. The customer keeps ownership of its content, AI models and related data, a sign that the arrangement is built as a rental of scarce computing power rather than a transfer of technology or data rights.

The scale is striking even by the standards of the AI boom. Over the full term, the Google contract could total about $30 billion, and SpaceX has said its disclosed compute deals with Google and Anthropic would exceed $70 billion in aggregate if both run to completion. In May, Anthropic agreed to use the full computing power of SpaceX’s Colossus 1 facility near Memphis, Tennessee, in a deal valued at $1.25 billion a month. Together, the contracts suggest that compute could become one of SpaceX’s most important businesses alongside rockets and satellites.

Google described the pact as a “short-term, timely agreement” meant to provide “bridge capacity” for demand for Gemini Enterprise, underscoring how even the biggest cloud and AI players are still forced to rent outside capacity when internal infrastructure falls short. That dynamic points to a broader market reality: the AI buildout is no longer just about model development, but about locking down chips, power and data-center access wherever they can be found.

The deal also lands as SpaceX readies for the public markets. Its IPO advisers include Goldman Sachs, Morgan Stanley, Bank of America, Citigroup and JPMorgan Chase, and CNBC reported the company planned to list on Nasdaq under the ticker SPCX. CNBC also reported that SpaceX was valued at $1.25 trillion in February after merging with xAI, a valuation that shows how investors are already pricing the company less as a launch contractor and more as a sprawling infrastructure platform at the intersection of space, artificial intelligence and enterprise computing.