SpaceX has signed a $920 million per month contract with Google, according to an SEC filing. The agreement, which runs from October 2026 through June 2029, could generate up to $30 billion for SpaceX over its duration. Google will receive approximately 110,000 Nvidia AI chips to support its customer demand. A Google Cloud spokesperson told the New York Times that the agreement is a 'short-term, timely agreement to ensure we have bridge capacity' for its Gemini Enterprise agent platform. The deal also serves as advertising for Google's AI products, as SpaceX's IPO is attracting significant attention. SpaceX is planning an IPO next week with a potential valuation above $1.7 trillion. Google holds about five percent of SpaceX, giving it a direct stake in a strong debut. The deal positions SpaceX as an AI infrastructure provider, following a previous $1.25 billion monthly agreement with Anthropic. SpaceX originally built the capacity for its own AI lab, xAI, which has lagged behind competitors. Leasing it out is seen as a financially sound move.
SpaceX's decision to lease its AI infrastructure highlights the growing demand for AI resources among major tech companies. The company's IPO, which is set for next week, could see a valuation exceeding $1.7 trillion, further solidifying its position in the tech industry. Google's stake in SpaceX provides it with a direct financial interest in the company's success. The arrangement underscores the strategic importance of AI infrastructure in the current technological landscape.
Source: thedecoder
