Google has signed a deal with SpaceX for AI resources, paying $920 million monthly from 2026 to 2029, amidst high demand for its services.
Google has formalized a contract with SpaceX, securing access to around 110,000 NVIDIA graphics processors, along with other essential computing infrastructure, including CPUs and memory. This agreement, effective from October 2026 to June 2029, involves a substantial monthly payment of $920 million.
The terms of the deal were disclosed by SpaceX in a filing with the U.S. Securities and Exchange Commission (SEC). The ramp-up of resource access will occur at a reduced rate until September 2026.
If SpaceX fails to deliver the agreed quantity of GPUs by the end of September 2026, Google has the option to either terminate the contract or adjust payments based on the actual volume provided, following a one-month grace period.
Post-December 31, 2026, either party may opt to end the agreement with a 90-day notice. Importantly, Google will retain ownership and intellectual rights to its AI models, content, and associated data.
Google has characterized this agreement as a short-term solution, necessitated by a temporary shortage in capacity due to an unexpected surge in demand for its Gemini Enterprise platform. The partnership between Google Cloud and SpaceX has been longstanding.
Alphabet, Google's parent company, has pledged over $180 billion in capital expenditures through 2026, with expectations for a significant increase in 2027. To facilitate these expenses, Alphabet recently announced an $80 billion stock offering.
Additionally, SpaceX has initiated a public application for an initial public offering (IPO) with the SEC, highlighting its growth and financial ambitions.
