Google will pay SpaceX $920M per month for compute

Google has entered an agreement to pay SpaceX $920 million per month from October 2026 through June 2029 for access to computing resources, including approximately 110,000 NVIDIA GPUs, CPUs, and memory. This deal aims to address the unexpected surge in demand for Google's recently launched AI products, such as Gemini Enterprise.

This agreement with Google mirrors a similar deal SpaceX made with Anthropic in late May, where Anthropic committed to paying $1.25 billion per month for compute access. Both agreements contain cancellation clauses, allowing termination with 90 days' notice after December 31, 2026.

While Anthropic was limited in its compute capacity prior to its deal, Google already holds a significant position as a major owner of AI compute resources globally. However, its parent company, Alphabet, is currently undergoing a substantial spending spree, with over $180 billion committed to capital expenditures this year and an anticipated increase in 2027.

SpaceX announced this deal shortly before its anticipated IPO on the Nasdaq exchange, where it aims to raise approximately $75 billion with a valuation of $1.75 trillion. Google is a long-standing investor in SpaceX, and its stake is expected to exceed $100 billion after the IPO. The companies are also reportedly exploring plans for orbital data centers.