SpaceX has lined up another lucrative compute deal ahead of its historic IPO, this time with Google. The company disclosed the agreement in a regulatory filing on Friday.
Deal Details
Under the terms, Google will pay SpaceX $920 million per month from October 2026 through June 2029. In return, Google gets access to approximately 110,000 NVIDIA GPUs, CPUs, memory, and other related components.
The arrangement is similar in length and scope to the deal SpaceX struck with Anthropic in late May. Under that agreement, Anthropic agreed to pay $1.25 billion per month through 2029 to rent all available compute from SpaceX's Colossus 1 data center near Memphis, Tennessee. That facility was originally built by xAI (now part of SpaceX) for its own artificial intelligence efforts.
Google's deal covers roughly half the compute capacity that Anthropic has access to at Colossus 1. SpaceX did not specify which data center Google would use. CEO Elon Musk has previously indicated that the Colossus 2 data center would be reserved for xAI.
Google's Compute Needs and Spending
Anthropic's compute capacity was severely limited before its SpaceX deal, prompting the company to raise usage limits the same day the agreement was announced. Google is in a much different position. Some estimates name Google as the world's largest single owner of AI compute.
In a statement, a Google representative described the deal as a response to unexpected demand for its recently launched AI products. "Google Cloud and SpaceX are long-time partners," the company said. "This is a short-term, timely agreement to ensure we have bridge capacity to meet surging customer demand for our agent platform, Gemini Enterprise, which has been even higher than we expected."
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But parent company Alphabet is on a spending spree. Alphabet has already committed to more than $180 billion in capital expenditures this year and expects that to "significantly increase" in 2027. To help fund that, Alphabet recently announced an $80 billion equity sale.
Cancellation Clause and IPO Context
Like the Anthropic deal, the agreement includes a cancellation clause. Both SpaceX and Google have the option to terminate the agreement with 90 days notice after December 31, 2026. Google's access to the data center will ramp up through September at a reduced fee, according to the filing.
"If we fail to deliver access to the committed amount of GPUs by September 30, 2026, then following a one-month grace period, Google may immediately terminate the agreement or accept the number of GPUs provided with a reduction in the monthly fees," the filing states.
SpaceX announced the deal just one week before the company's stock is expected to start trading on the Nasdaq exchange. Paperwork filed with the Securities and Exchange Commission shows the company is aiming to raise around $75 billion at a valuation of around $1.75 trillion, which would make it the largest IPO in history.
Google is a longtime investor in SpaceX. Its stake in Musk's company is expected to be worth more than $100 billion after the IPO. The companies are also reportedly in talks to try to build orbital data centers, a major component of SpaceX's future plans post-IPO.