Google signs $920 million-a-month AI compute deal with SpaceX through 2029

Google’s agreement appears to cover roughly half the compute capacity made available to Anthropic.

Google has signed a major compute infrastructure agreement with SpaceX, committing to pay $920 million per month for access to AI computing resources through June 2029, according to a regulatory filing, as reported by TechCrunch.Under the deal, which begins in October 2026, Google will gain access to approximately 110,000 Nvidia GPUs, CPUs, memory systems and related computing components.

The agreement is one of the largest AI infrastructure contracts disclosed by SpaceX ahead of its planned stock market debut.The arrangement follows a similar agreement announced in May between SpaceX and Anthropic.

Under that deal, Anthropic agreed to pay $1.25 billion per month through 2029 to access the full available compute capacity at SpaceX’s Colossus 1 data centre near Memphis, Tennessee, which was originally built for xAI’s artificial intelligence operations.Google’s agreement appears to cover roughly half the compute capacity made available to Anthropic.

SpaceX did not disclose which facility would support Google’s workloads, although CEO Elon Musk has previously indicated that the planned Colossus 2 data centre would primarily be reserved for xAI.Unlike Anthropic, which faced compute constraints before securing the SpaceX agreement, Google already operates one of the world’s largest AI computing infrastructures.

However, the company said demand for its AI services has exceeded expectations.“Google Cloud and SpaceX are long-time partners,” a Google spokesperson said in a statement. “This is a short-term, timely agreement to ensure we have bridge capacity to meet surging customer demand for our agent platform, Gemini Enterprise, which has been even higher than we expected.”The agreement comes as Google's parent company, Alphabet, continues to ramp up investments in AI infrastructure.

Alphabet has already committed more than $180 billion in capital expenditure this year and has indicated that spending will increase further in 2027.

To support those investments, the company recently announced an $80 billion equity sale.Like the Anthropic agreement, the Google contract includes termination provisions.

Both parties may cancel the deal with 90 days’ notice after December 31, 2026.

The filing also states that Google’s access to the infrastructure will ramp up gradually through September 2026 at a reduced fee.If SpaceX fails to provide the agreed amount of compute capacity by September 30, 2026, Google will have the option to terminate the agreement after a one-month grace period or accept reduced capacity in exchange for lower monthly payments.The disclosure comes just days before SpaceX is expected to begin trading on the Nasdaq.

According to filings with the US Securities and Exchange Commission, the company is targeting a $75 billion fundraising and a valuation of approximately $1.75 trillion, which would make it the largest IPO in history.Google is already a significant investor in SpaceX, with its stake reportedly worth more than $100 billion following the listing.

The two companies are also reportedly exploring plans to develop orbital data centres, a project that forms part of SpaceX’s long-term post-IPO strategy.