SpaceX to Provide 110,000 NVIDIA GPUs to Google: $920 Million AI Deal
A few days before one of the most anticipated IPOs in the history of the financial markets (aiming to raise approximately $75 billion with a valuation that could exceed $1.75 trillion), SpaceX announced a new and significant business agreement in the artificial intelligence sector. The company led by Elon Musk will provide Google with substantial AI computing capacity through its data center infrastructure, in a contract that could generate revenues of over $30 billion during its duration.
According to documents filed with U.S. regulatory authorities, Google will pay SpaceX $920 million per month from October 2026 to June 2029 to access approximately 110,000 NVIDIA GPUs, along with CPUs, memory, and other hardware components intended for AI-related workloads. The agreement includes an initial phase for gradually increasing the available capacity until September 2026, with reduced rates.
Should SpaceX be unable to guarantee access to the promised number of accelerators by the established deadline, Google has the option to immediately terminate the contract or accept lower capacity with a proportional reduction in costs. Both parties will also be able to terminate the agreement with 90 days' notice starting from December 31, 2026.
Google explained that the agreement arises from the need to meet demand exceeding expectations for Gemini Enterprise, the AI platform aimed at large organizations. According to the company, the contract represents a temporary solution to rapidly expand the availability of computational infrastructure and support the growth of services based on generative models and AI agents. This choice appears significant considering that Google is one of the largest owners of infrastructure dedicated to artificial intelligence worldwide.
The reliance on external capacity suggests how demand for computational resources continues to grow even among hyperscalers that already have massive proprietary data centers. The operation is also part of a broader investment plan by Alphabet. The company has already projected capital expenditures exceeding $180 billion in 2026 and indicated further increases for 2027. To support such investments, it has recently announced a capital raising through stock issuance for $80 billion.
The agreement with Google represents the second major contract announced by SpaceX within a few weeks. In May, a partnership with Anthropic was disclosed, securing the entire available capacity of the Colossus 1 data center located in the Memphis, Tennessee area. In that case, the contract value reaches about $1.25 billion per month until 2029. The new contract with Google, however, seems to involve a quantity of computational resources approximately half of those reserved for Anthropic.
SpaceX did not specify which infrastructure will be used to meet Google's needs. Elon Musk had previously indicated that the future Colossus 2 data center could be primarily dedicated to the internal activities of xAI, the artificial intelligence company that merged into the SpaceX group following the announcement of the merger in previous months.
The strategy of monetizing AI infrastructure appears particularly relevant in light of the significant investments made by the group. In the preparatory documents for the IPO, SpaceX reported capital expenditures of $10.1 billion in the first quarter of the year, with approximately $7.7 billion directly allocated to projects related to artificial intelligence. Despite these investments, the AI segment recorded an operating loss of about $2.5 billion against revenues of $818 million during the same period. Monetizing unused computational capacity thus represents a potential source of revenue that could improve the profitability of the infrastructure originally built to support the development of xAI's Grok models.