Google to Pay SpaceX $920M Monthly for AI Compute Access

Starting in October 2026, Google will pay SpaceX $920 million each month until June 2029 for access to a substantial amount of computing hardware, according to a regulatory filing released on Friday.

The agreement covers approximately 110,000 NVIDIA GPUs, CPUs, memory, and other related components. This arrangement closely mirrors a similar contract SpaceX recently secured with Anthropic, which involves a monthly payment of $1.25 billion through 2029 for full use of compute resources at the Colossus 1 data center near Memphis, Tennessee.

While Anthropic’s deal grants it access to the entire compute capacity of Colossus 1, Google’s contract appears to cover roughly half that amount. SpaceX has not specified which data center Google will utilize, but CEO Elon Musk has indicated that Colossus 2 might be reserved for xAI, the AI company now part of SpaceX.

Anthropic had faced significant limitations on its compute usage before its agreement with SpaceX, which were lifted on the day the deal was announced. In contrast, Google is considered one of the largest single owners of AI compute globally.

Alphabet, Google’s parent company, is currently engaged in an extensive capital expenditure campaign, having committed over $180 billion this year with plans to increase spending significantly in 2027. To support these investments, Alphabet recently announced an $80 billion equity sale.

Similar to the Anthropic contract, the SpaceX-Google agreement includes a cancellation clause allowing either party to terminate the deal with 90 days’ notice after December 31, 2026. Google’s access to the data center will increase gradually through September 2026 at a reduced fee, as detailed in the filing.

The filing states, “If we fail to deliver access to the committed amount of GPUs by September 30, 2026, then following a one-month grace period, Google may immediately terminate the agreement or accept the number of GPUs provided” with a corresponding reduction in monthly fees.

This announcement comes just one week before SpaceX’s anticipated initial public offering on the Nasdaq exchange. SEC filings reveal the company aims to raise approximately $75 billion with a valuation near $1.75 trillion, positioning it as the largest IPO in history.

Google has been a long-term investor in SpaceX, with its stake expected to exceed $100 billion in value post-IPO. The two companies are reportedly negotiating plans to develop orbital data centers, a key element of SpaceX’s strategy following its public listing.

This story is ongoing and will be updated as new information becomes available.