For creators and developers, the arrival of SpaceX’s IPO marks a seismic shift in how we access the raw horsepower needed to train next-generation models. The rocket company is no longer just a logistics provider; it is becoming a primary utility for the global AI industry, locking in massive, guaranteed compute capacity before its shares hit the market.
A $920M monthly commitment from Google
SpaceX confirmed a landmark agreement with Google on Friday, detailing a contract that will run from October 2026 through June 2029. Under these terms, Google agreed to transfer $920 million each month in exchange for access to roughly 110,000 NVIDIA GPUs, CPUs, and associated memory components.
Context from the Anthropic deal
This arrangement mirrors the scope and duration of the deal SpaceX struck with Anthropic in late May. In that separate agreement, Anthropic committed to paying $1.25 billion per month through 2029 to lease all available compute from the Colossus 1 data centre near Memphis, Tennessee. That facility was originally constructed by xAI, which is now a subsidiary of SpaceX, for its own internal artificial intelligence projects.
Where the new data is
While Google’s contract covers approximately half the compute volume available to Anthropic at Colossus 1, SpaceX has not specified which facility will host Google’s infrastructure. Elon Musk has previously indicated that Colossus 2 would be reserved for xAI, suggesting Google might utilise a different site within the expanding network.
Google’s position and capital strategy
Unlike Anthropic, which faced significant restrictions on its compute capacity before securing the SpaceX deal, Google occupies a vastly different position. Some analysts estimate it is currently the world’s largest single owner of AI compute resources. Yet, its parent company, Alphabet, is aggressively expanding its own footprint. The tech giant has already pledged over $180 billion in capital expenditures for this year and anticipates a significant increase in 2027. To fund this growth, Alphabet recently executed an $80 billion equity sale.
Terms, conditions, and exit clauses
Like the agreement with Anthropic, the Google contract includes a termination provision. Both parties retain the right to end the arrangement with 90 days’ notice after December 31, 2026. The filing notes that Google’s access to the data centre will ramp up through September at a reduced fee. Furthermore, the document states that if SpaceX fails to deliver the committed number of GPUs by September 30, 2026, Google may terminate the agreement immediately or accept the available capacity with a corresponding reduction in monthly fees after a one-month grace period.
Timing ahead of the IPO
SpaceX announced this deal just one week before its stock is expected to commence trading on the Nasdaq. Regulatory filings submitted to the Securities and Exchange Commission reveal the company intends to raise approximately $75 billion at a valuation of roughly $1.75 trillion, which would make it the largest initial public offering in history.
Google remains a longstanding investor in SpaceX, with its stake expected to be worth more than $100 billion post-IPO. The two entities are also reportedly discussing the construction of orbital data centres, a critical pillar of SpaceX’s long-term strategy following its public listing.
Key takeaways
- Google has committed $920 million per month through June 2029 to lease roughly 110,000 NVIDIA GPUs and CPUs from SpaceX.
- This deal mirrors the earlier agreement with Anthropic, though Google’s facility location remains unspecified, potentially avoiding the Colossus 2 site reserved for xAI.
- Alphabet’s massive capital expenditure plans and recent $80 billion equity sale underscore the intense competition for AI compute infrastructure ahead of SpaceX’s historic IPO.
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