Google to Disburse $920 Million Monthly to SpaceX for Computing Services

SpaceX has entered into a new computing agreement ahead of its major IPO, now in collaboration with Google. This partnership was made public in a regulatory filing on Friday.

As part of the deal, Google will pay SpaceX $920 million monthly from October 2026 to June 2029 for access to “approximately 110,000 NVIDIA GPUs, CPUs, memory, and other related components.”

This agreement parallels the earlier deal made by SpaceX with Anthropic in late May. In that arrangement, Anthropic agreed to pay SpaceX $1.25 billion per month until 2029 for the use of all computing resources from its Colossus 1 data center located near Memphis, Tennessee, which was originally set up for xAI and has now become part of SpaceX.

Google’s agreement appears to cover roughly half the computing resources allocated to Anthropic at Colossus 1. SpaceX has yet to reveal which data center will be accessible to Google. CEO Elon Musk has suggested that the Colossus 2 data center is likely intended for xAI.

Before its negotiation with SpaceX, Anthropic faced significant limitations on its computing capacity, but lifted its usage restrictions on the day the deal was announced. In contrast, Google operates from a much stronger position, being estimated as the world’s largest single owner of AI computing resources.

A Google spokesperson commented that the deal was driven by a surge in demand for its recently launched AI products. “Google Cloud and SpaceX are long-time collaborators,” the statement noted. “This is a timely, short-term agreement aimed at providing bridge capacity to meet the growing customer demand for our agent platform, Gemini Enterprise, which has surpassed our expectations.”

Alphabet, Google’s parent company, is increasing its expenditures, pledging more than $180 billion in capital investments for this year, with a forecast of a “significant increase” in 2027. In line with this, Alphabet recently announced an equity sale of $80 billion.

Similar to the deal with Anthropic, the agreement with Google includes a cancellation clause. Both SpaceX and Google can terminate the contract with 90 days’ notice after December 31, 2026. Google will gradually ramp up access to the data center “through September at a reduced fee,” as stated in the filing.

“If we do not provide access to the promised number of GPUs by September 30, 2026, Google may cancel the agreement immediately after a one-month grace period or accept the number of GPUs delivered,” the document specifies, which would lead to adjusted monthly fees.

SpaceX disclosed this agreement just a week ahead of the expected launch of its stock on the Nasdaq. Documentation submitted to the Securities and Exchange Commission suggests the company aims to raise roughly $75 billion, targeting a valuation close to $1.75 trillion—potentially the largest ever.

Google has been a longstanding investor in SpaceX, with its equity projected to exceed $100 billion following the IPO. The companies are also in discussions about constructing orbital data centers—a critical element of SpaceX’s future plans post-IPO.