SpaceX to Supply Google With 110,000 GPUs in Deal Worth Up to $920M Monthly

SpaceX will supply Google with roughly 110,000 Nvidia graphics processing units plus central processors, memory and other components housed in its data centers. Google will pay SpaceX $920 million per month once the arrangement reaches full capacity. The agreement runs from October 2026 through June 2029 at that rate, with capacity ramping up through September 2026 at a reduced fee.

If SpaceX fails to deliver the committed number of GPUs by September 30, 2026, Google can terminate the agreement immediately or accept the GPUs provided at a reduced fee after a one-month grace period. After 2026, either party may end the contract with 90 days' notice. The companies announced the deal one week before SpaceX’s planned IPO.

Last month, Anthropic announced a deal to use all of SpaceX’s compute capacity at its Colossus 1 data center in Memphis, Tennessee. Alphabet invested in SpaceX in 2015 when the company was valued at $12 billion. 25 trillion.

75 trillion. 1 billion, more than doubling from a year earlier. 7 billion were committed to AI.

5 billion on $818 million in revenue. " In the prospectus, SpaceX named Google as a competitor in connectivity, where SpaceX owns the Starlink satellite internet unit and Google has a fiber business. In AI, SpaceX said it competes with Google as well as OpenAI, Anthropic, Meta and Microsoft.

Google in April revised its capital expenditure forecast this year to between $180 billion and $190 billion, up from its previous estimate of $175 billion to $185 billion.