Overview
- SpaceX disclosed Friday that Alphabet’s Google will pay $920 million per month from October 2026 through June 2029 for hosted AI compute capacity.
- The agreement covers access to roughly 110,000 Nvidia GPUs plus CPUs, memory and related components and calls for capacity to ramp up through September at a reduced fee.
- The contract requires SpaceX to deliver the committed GPU capacity by September 30, 2026, and lets Google terminate immediately or accept fewer GPUs at a pro rata reduced fee after a one‑month grace period.
- After the first year either party can end the deal with 90 days’ notice, a term that limits how much of the headline monthly fee counts as guaranteed long‑term revenue.
- The deal follows Anthropic’s Colossus arrangement and SpaceX’s merger with xAI, and it could heighten investor and regulator focus on SpaceX’s disclosure, delivery risks, and the company’s IPO valuation narrative.