NEW YORK — SpaceX has finalized a monumental AI compute agreement with Google, just one week prior to its highly anticipated, historic debut on the Nasdaq exchange. According to regulatory disclosures made public on Friday, the multi-year deal establishes that Google will pay SpaceX a staggering $920 million per month from October 2026 through June 2029 to rent high-performance infrastructure, including roughly 110,000 Nvidia GPUs, advanced CPUs, memory, and specialized hardware.
The arrangement structurally parallels a massive existing contract between SpaceX and AI firm Anthropic, which currently pays $1.25 billion per month through 2029 to occupy the full capacity of the Colossus 1 infrastructure cluster in Memphis—a facility originally built by xAI and subsequently integrated into SpaceX operations. Analysts estimate that Google’s lease represents approximately half the physical scale of Anthropic’s setup. Although SpaceX did not explicitly identify the exact facility Google will utilize, CEO Elon Musk has previously clarified that the upcoming Colossus 2 layout will remain exclusively dedicated to internal xAI projects.
While Anthropic pursued SpaceX hardware to aggressively scale its operations from a limited base, Google represents the world’s single largest corporate owner of native AI infrastructure. A Google spokesperson clarified that the transaction functions as a strategic, short-term bridge to mitigate severe capacity constraints for its Gemini Enterprise suite, which has experienced unprecedented enterprise demand following recent product rollouts. Google’s parent company, Alphabet, continues a massive capital expansion campaign, committing over $180 billion to infrastructure this year with projections to scale higher in 2027, backed by a recent $80 billion equity sale.
The contract features flexible off-ramps: either party can initiate a 90-day termination notice after December 31, 2026. Additionally, Google will scale up its hardware access at a discounted rate through September, retaining an explicit clause to terminate the entire agreement immediately if SpaceX fails to deliver the mandated GPU quotas by September 30, 2026.
The cash-generative deal lands at a critical juncture for the aerospace corporation, reinforcing investor confidence as it targets raising $75 billion at a historic $1.75 trillion valuation for its looming initial public offering (IPO). Google, an early-stage institutional investor in SpaceX, stands to see the value of its long-held equity stake climb past $100 billion post-listing. Furthermore, the two technology giants are reportedly in preliminary talks regarding the architecture of orbital, space-based data centers, a cornerstone of SpaceX’s long-term commercial roadmap.
