SpaceX secures $920 million monthly compute deal with Google ahead of IPO

SpaceX has entered into a substantial agreement to lease high-performance compute capacity to Google, with the tech giant committing to pay $920 million per month for the duration of the contract. The deal, which spans 32 months, was announced via a regulatory filing on Friday and is set to operate out of xAI data centres.

The contract is scheduled to run from October 2026 to June 2029. Under the terms of the agreement, Google will gain access to approximately 110,000 NVIDIA GPUs and related infrastructure. The arrangement includes a termination clause that permits either party to exit the deal with 90 days’ notice, provided the notice is given after 31 December 2026.

This financial commitment underscores the deepening operational and financial ties between the two entities as SpaceX prepares for its anticipated initial public offering. Google is a longstanding investor in the space company and is positioned to hold a substantial stake post-listing, with estimates suggesting the value of Google’s holding could exceed $100 billion once the listing is complete.

The agreement mirrors a similar arrangement SpaceX made with Anthropic in late May, which involves $1.25 billion per month for compute resources at a facility near Memphis, Tennessee, originally constructed for xAI. Both contracts share comparable scopes and lengths, highlighting the intense demand for high-performance computing capacity in the current market.

The announcement coincides with a summit in Beijing between US President Donald Trump and Chinese President Xi Jinping, attended by major technology executives including Elon Musk, Tim Cook, and Jensen Huang. The convergence of high-stakes geopolitical diplomacy and major corporate infrastructure deals underscores the critical role of artificial intelligence infrastructure in global markets.