In exchange for access to “approximately 110,000 NVIDIA GPUs, CPUs, memory, and other related components,” Google will pay SpaceX $920 million a month between October 2026 and June 2029.
The agreement is comparable to the one SpaceX announced with Anthropic in late May, both in terms of duration and scope. As part of that agreement, Anthropic committed to paying SpaceX $1.25 billion a month until 2029 to rent all of the computing power from its Colossus 1 data center, which is located close to Memphis, Tennessee. xAI, which is now a part of SpaceX, first constructed this facility for its own artificial intelligence initiatives.
It looks like Google’s agreement covers around half of the computing power Anthropic has at Colossus 1. SpaceX didn’t specify the particular data center Google would be using. Elon Musk, the CEO, has previously stated that his business would set aside the Colossus 2 data centre for xAI.
Before its agreement with SpaceX, Anthropic’s computational capacity was severely constrained, and on the day the contract was announced, usage restrictions were raised. As the largest single owner of AI compute in the world, according to some estimations, Google is in a completely different position.
A Google representative who chose to be anonymous said in a statement that the transaction was made in response to unanticipated demand for its recently released AI technologies.
“SpaceX and Google Cloud are long-term partners,” Google said in a statement. “This is a timely, short-term agreement to guarantee we have bridge capacity to meet the increasing customer demand for our agent platform, Gemini Enterprise, which has exceeded our expectations.”
However, Alphabet, the company’s parent, is going on a spending binge. Alphabet has already committed to spending more than $180 billion on capital projects this year, and it has stated that it anticipates a “significant increase” in 2027. Alphabet recently announced an equity sale of $80 billion to help with it.
The agreement with Google has a cancelation clause, just like the Anthropic agreement. After December 31, 2026, both SpaceX and Google may end the agreement with ninety days’ notice.
The application states that Google will increase its access to the data center “through September at a reduced fee.”
It states that “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 monthly cost reduction.
One week before the company’s stock is anticipated to begin trading on the Nasdaq exchange, SpaceX made the announcement. The corporation wants to raise around $75 billion at a valuation of about $1.75 trillion, making it the largest in history, according to documents submitted to the Securities and Exchange Commission.
SpaceX has long been an investment of Google’s. After the IPO, its ownership in Musk’s business is anticipated to be worth more than $100 billion. Additionally, the firms are apparently in discussions to attempt to construct orbital data centers, which will play a significant role in SpaceX’s post-IPO plans.
The reason Google is renting from SpaceX, even though Google is one of the world’s largest owners of AI infrastructure and proprietary TPU chips, is its explosive demand has temporarily exceeded its capacity. A Google Cloud spokesperson confirmed the hardware will serve as “bridge capacity” to meet overwhelming customer demand for its agentic AI platform, Gemini Enterprise.
The compute power is being provisioned from the massive Colossus data center clusters in Memphis, Tennessee. These facilities were originally built by Elon Musk’s artificial intelligence venture, xAI, to train the Grok chatbot. xAI officially merged into SpaceX in February 2026.
Rather than leaving the hardware underutilized, SpaceX has turned its data centers into a massive cash machine. This marks SpaceX’s second multi-billion dollar compute lease in less than a month.
The first deal was struck in late May 2026. Anthropic agreed to pay SpaceX $1.25 billion per month through 2029 for the full capacity of Colossus 1.
The Google deal secures roughly half the footprint size of the Anthropic deal. Google will pay $920 million per month.
Combined, these two contracts alone bring SpaceX roughly 2.17 billion per month in highly profitable recurring revenue. That amounts to approximately 26 billion annualized. This revenue significantly strengthens SpaceX’s valuation case ahead of its upcoming IPO.
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