Google has agreed to pay Elon Musk's Spacex $920 million a month for computing power as part of a cloud-services deal.

SpaceX Google has agreed to pay Elon Musk's Spacex $920 million a month for computing power as part of a cloud-services deal. According to a Securities Exchange Commission (SEC) filing by Spacex, the deal runs through mid-2029. As per the agreement, Google will pay Spacex the monthly fee from October through June 2029, with capacity ramping up through September at a reduced cost. In case Spacex fails to deliver the access to the 'guaranteed' Nvidia chips as part of the deal by September 30, Google has the right to terminate the contract, with a one-month grace period. SpaceX has announced the deal just days before the company’s stock is expected to start trading on the Nasdaq exchange. As per the SEC filing, the Google-Spacex compute deal covers “approximately 110,000 NVIDIA GPUs, CPUs, memory, and other related components.” From the looks, the deal appears similar in length and scope to the one SpaceX announced with Anthropic in late May. As part of that Anthropic agreed to pay Spacex $1.25 billion per month through the year 2029 to rent all the available compute from its Colossus 1 data center near Memphis, Tennessee that Elon Musk's company xAI originally built for its own artificial intelligence efforts. Spacex has not so far revealed which specific data center Google would be using. With these deals, Anthropic and Google will be paying a combined $2.17 billion per month for compute capacity to Spacex. What Spacex SEC filing says on Google deal "On June 5, 2026, we entered into a Cloud Service Agreement with Google with respect to access to compute capacity. The customer has agreed to pay us $920 million per month from October 2026 through June 2029, with capacity ramping up through September at a reduced fee. The compute capacity provided includes approximately 110,000 NVIDIA GPUs, CPUs, memory, and other related components. After December 31, 2026, the agreement may be terminated by either party upon 90 days' notice. The customer will retain ownership of, and intellectual property rights in, its content, Al models, and related data," reads Spacex's SEC filing. Google on compute deal with Elon Musk's Spacex In a statement, a Google representative described the deal as a result of unexpected demand for its recently launched AI products. “Google Cloud and SpaceX are long-time partners,” Google said in a statement. It added, “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.” Incidentally, Google is a longtime investor in Spacex. Its stake in Elon Musk’s company is expected to be worth more than $100 billion after the IPO. The companies are also reportedly in talks to try to build orbital data centers — a major component of Spacex's future plans. Google CEO Sundar Pichai too has spoken about the company's interest in Space data centers. End of Article Latest Mobiles View All Motorola Edge 70 Pro Plus 5G ₹44,999 Itel A100 Pro 4G OPPO A6c 4G ₹13,999 Xiaomi 17T Pro Xiaomi 17T HMD Vibe2 5G ₹10,999 Realme 16T ₹27,999 Motorola Razr Fold ₹1,49,999 Ai+ Nova Flip ₹39,999 OnePlus Nord CE 6 Lite 5G ₹31,999 Moto G37 Power 5G ₹19,999 Moto G37 5G ₹15,599 Realme 50A Prime Poco C81x 4G ₹10,368 OnePlus 10R Prime Blue Edition

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Alphabet entered a cloud service agreement with SpaceX to pay $920 million per month for 200 megawatts of capacity from October 2026 through June 2029.