Google, the world's largest single owner of AI compute, is renting 110,000 Nvidia GPUs from a rocket company because customer demand is overwhelming even its $180 billion infrastructure budget. The deal, disclosed in a regulatory filing on Friday, locks Google into $920 million monthly payments to SpaceX from October 2026 through June 2029. The contract is worth roughly $30 billion at full rate before reduced ramp-up fees.
Google already operates custom TPU chips at a scale that makes it the industry's largest compute owner. But a Google spokesperson said the company needed "bridge capacity" because demand for Gemini Enterprise "has been even higher than we expected."
SpaceX signed the deal one week before its stock is expected to begin trading on Nasdaq. The company is aiming to raise about $75 billion at a valuation near $1.75 trillion, which would make it the largest IPO in history.
This is the second massive compute contract SpaceX has landed in a month. In late May, Anthropic agreed to pay $1.25 billion per month through 2029 for exclusive access to the entire Colossus 1 data center in Memphis, the facility xAI originally built to train Grok before the AI company merged into SpaceX in February.
Google's contract covers roughly half the GPU count Anthropic secured. SpaceX did not specify which data center Google will use.
CEO Elon Musk has previously indicated the Colossus 2 facility would stay reserved for xAI's own work. The terms include flexibility for both sides. Google's access ramps up through September at a reduced fee.
If SpaceX fails to deliver the committed GPU count by September 30, Google can terminate after a one-month grace period or accept fewer chips at a proportionally lower rate. After December 31, either party can exit with 90 days' notice.
Alphabet has already committed more than $180 billion in capital expenditures this year and expects that figure to rise in 2027. The company recently announced an $80 billion equity sale to help fund the spending. For SpaceX, the compute deals transform a dormant asset into recurring revenue. xAI was reportedly using only 11% of Colossus 1's capacity before the Anthropic deal.
Combined, the two contracts represent roughly $26 billion in annualized compute revenue a number that will feature prominently in the IPO prospectus.
Google is also a longtime SpaceX investor. Its stake is expected to be worth more than $100 billion after the listing. The companies are reportedly in talks to build orbital data centers as part of SpaceX's post-IPO plans.
