source: techcrunch ai: google will pay spacex $920m per month for compute
level: business
google will pay spacex $920 million each month from october 2026 through june 2029 for access to about 110,000 nvidia gpus, cpus, memory, and related components. the deal was disclosed in a regulatory filing ahead of spacex's ipo. it follows a similar agreement spacex made with anthropic in late may, where anthropic agreed to pay $1.25 billion monthly to rent all available compute from the colossus 1 data center near memphis, tennessee.
google's deal appears to cover roughly half the compute that anthropic has at colossus 1. spacex did not specify which data center google will use. google described the agreement as a short-term bridge to handle unexpected high demand for its ai products, including its agent platform and gemini enterprise. alphabet, google's parent, is already spending heavily, with over $180 billion in capital expenditures planned this year and expectations of a significant increase in 2027.
the contract includes a cancellation clause allowing either party to terminate with 90 days notice after december 31, 2026. google's access will ramp up through september at a reduced fee. if spacex fails to deliver the committed gpus by september 30, 2026, google can cancel or accept fewer gpus with lower fees. spacex announced the deal one week before its stock is expected to start trading on nasdaq, aiming to raise around $75 billion at a valuation of about $1.75 trillion.
why it matters: this deal shows how major tech companies are securing massive gpu capacity to support growing ai workloads, impacting compute availability and pricing across the industry.
source: techcrunch ai: google will pay spacex $920m per month for compute