SpaceX secures Google cloud deal worth billions as its IPO date draws near

SpaceX has finalised a multi-year cloud services agreement with Alphabet's Google, securing a significant block of computing capacity as Elon Musk's space venture prepares for its much-anticipated debut on the US stock market next week.

The computing capacity covered under the agreement includes approximately 110,000 Nvidia GPUs, CPUs, memory, and a range of related components.

Payment terms and timeline

Under the terms of the deal, Google will pay SpaceX $920 million per month from October this year through to June 2029. Capacity will be gradually scaled up through September at a reduced fee, according to a regulatory filing made by the company.

After 31 December, either party may bring the agreement to an end by serving 90 days' notice. Should SpaceX fail to provide access to the agreed number of GPUs by 30 September, Google may, following a one-month grace period, "immediately terminate the agreement or accept the number of GPUs provided, with a corresponding pro-rata reduction in the monthly fees," the company stated. Google will also retain full ownership of all intellectual property rights in its content, AI models, and associated data.

Another high-profile client ahead of IPO

The agreement follows an earlier deal with Anthropic, bringing another prominent name to SpaceX's client roster as the company targets a $75 billion raise through its forthcoming initial public offering. The addition of Google further bolsters SpaceX's credentials as an AI infrastructure provider.

In May, Anthropic confirmed it had reached an agreement to utilise the full computing power of SpaceX's Colossus 1 facility in Memphis, Tennessee. The site houses more than 220,000 Nvidia processors and is set to provide the maker of the Claude chatbot with 300 megawatts of new capacity within a month.

Combined deal value dwarfs previous revenues

On an annual basis, SpaceX's compute access agreements with Anthropic and Google are worth approximately $26 billion combined — a figure that towers over the company's revenues from last year.

As reported by Reuters, the total aggregate value of both disclosed compute-capacity agreements exceeds $70 billion, provided neither contract is terminated before its scheduled end date.