SpaceX disclosed a significant agreement in a regulatory filing, revealing that Google will pay the company $920 million monthly for computing power. This substantial financial influx supports SpaceX as it prepares for an initial public offering slated to be a major event.
The agreement, active from October to June 2029, could result in around $30 billion for SpaceX. This move positions SpaceX, which owns Elon Musk’s artificial intelligence lab, xAI, as a key infrastructure provider in the competitive A.I. sector.
Google will receive access to approximately 110,000 Nvidia A.I. chips under the agreement. These resources aim to satisfy unexpected high demand for Google’s A.I. models. Google’s cloud business reportedly has unfulfilled contracts worth $460 billion, reflecting strong demand for their offerings.
A Google Cloud spokesman noted, “Google Cloud and SpaceX are longtime partners. 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.”
SpaceX has not provided immediate comments on the deal. The company secured a similar contract last month with Anthropic, another prominent A.I. lab, receiving $1.25 billion monthly. Anthropic is also set to go public this year.
SpaceX’s public offering anticipated next week could value the company over $1.7 trillion and elevate Mr. Musk to a trillionaire status. To attract investors, SpaceX has shared more financial details recently.
Mr. Musk’s efforts to reinforce SpaceX’s position in A.I. include constructing a massive supercomputer in Memphis for xAI and promoting its computing power. He has secured revenue through deals with Anthropic and Google.
Additionally, Mr. Musk plans a major chip factory in Texas. In April, SpaceX announced a $60 billion acquisition of Cursor, an A.I. startup specializing in a code-writing assistant.
The Google agreement strengthens the relationship between the search giant and SpaceX. Google holds about a 5 percent stake in SpaceX and has considered using SpaceX for its data center space-launch initiatives, termed Project Suncatcher.