SpaceX disclosed in a regulatory filing on Friday that Google will pay $920 million a month for computing power, funneling billions into Elon Musk's rocket company as it gears up for a highly anticipated initial public offering.
The agreement begins in October and runs through June 2029, potentially earning SpaceX around $30 billion in total. The deal helps position SpaceX, which owns Musk's artificial intelligence lab xAI, as a major infrastructure provider in the fierce global race to dominate AI.
As part of the arrangement, Google will gain access to roughly 110,000 Nvidia AI chips. The tech giant said these chips would help it meet larger-than-expected customer demand for its AI models. In April, Google reported that its cloud business had contracts totaling $460 billion that had yet to be fulfilled as revenue, signaling enormous demand for its services.
Google's Statement on the Agreement
"Google Cloud and SpaceX are longtime partners," a Google Cloud spokesman said in a statement. "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 immediately respond to a request for comment.
Broader AI Infrastructure Push by SpaceX
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The Google deal follows a similar agreement SpaceX reached last month with Anthropic, another leading AI lab that is also expected to go public this year. Anthropic is paying SpaceX $1.25 billion a month for computing power.
SpaceX is slated to go public next week in a deal that could value the company at more than $1.7 trillion, making Musk a trillionaire. In the run-up to the IPO, the company has disclosed more financial details to attract investors.
Musk's AI-Related Investments
Musk has also announced details of a giant chip factory he is building in Texas. In April, SpaceX revealed a $60 billion deal to acquire the AI startup Cursor, which makes a code-writing assistant.
The Google deal deepens ties between the search giant and the rocket company. Google owns roughly a 5 percent stake in SpaceX and has explored using SpaceX as a launch partner as Google seeks to place data centers in space, a project known as Project Suncatcher.
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