SpaceX Secures $920 Million Monthly Deal with Google Ahead of IPO

SpaceX has announced that Google will pay the company $920 million monthly for computing power, fueling SpaceX’s preparations for a major initial public offering. This agreement, starting in October and continuing through June 2029, could generate approximately $30 billion for SpaceX. This move positions SpaceX, which owns Elon Musk’s artificial intelligence lab xAI, as a significant infrastructure provider in the competitive field of artificial intelligence.

As part of this deal, Google will access about 110,000 AI chips from Nvidia. Google stated that these resources would help meet its larger-than-anticipated customer demand for AI models. In its April announcement, Google noted that its cloud business had outstanding contracts totaling $460 billion, showcasing the high demand for its services.

“Google Cloud and SpaceX are longtime partners,” a Google Cloud spokesperson remarked. “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 did not respond immediately to a request for comment.

Last month, SpaceX made a similar agreement with Anthropic, another leading AI lab, to provide computing power. Anthropic, which also plans to go public this year, pays SpaceX $1.25 billion monthly.

SpaceX is poised to go public next week, potentially valuing the company over $1.7 trillion, which would likely make Musk a trillionaire. To attract investors, SpaceX has recently revealed more financial details.

Musk has developed a substantial supercomputer in Memphis to support xAI. However, the company has generally trailed behind rivals like OpenAI, Anthropic, and Google. Leading up to the public offering, Musk has focused more on AI, emphasizing xAI’s computing power and its capacity to be monetized through deals with Anthropic and Google.

Musk has also outlined plans for a significant chip factory in Texas. Additionally, in April, SpaceX disclosed a $60 billion agreement to acquire the AI start-up Cursor, creator of a code-writing assistant.

The deal with Google strengthens the relationship between the search giant and SpaceX. Google owns about a 5 percent stake in SpaceX and has considered using SpaceX for launching data centers into space, under an initiative called Project Suncatcher.