Google under Alphabet has agreed to pay SpaceX $920 million per month from October through June 2029 to obtain its computing capacity; the total amount during the agreement period is about $30 billion. On June 7, SpaceX disclosed this deal in a regulatory filing. The contract covers 110,000 Nvidia GPU chips and other CPU, memory chips, and related components.
Key Terms of the Agreement
The specific terms of the agreement disclosed in SpaceX’s regulatory filing:
Monthly payment: $920 million (paid by Google to SpaceX)
Term: October 2026 through June 2029
Total contract value: about $30 billion
Hardware covered: 110,000 Nvidia GPU chips, as well as CPUs, memory chips, and other components
Deadline for Nvidia chip delivery: SpaceX must deliver by September 30, 2026; if it fails to complete, Google may terminate the contract after granting a one-month grace period
Early termination clause: Either party may terminate the agreement with 90 days’ written notice, with terms the same as those for the deals between SpaceX and Anthropic
Background: Google Cloud’s Demand
A Google Cloud spokesperson said this transaction helps meet market demand for its AI services. In its recent financial report, Alphabet noted that Google Cloud’s backlog of orders has exceeded $460 billion, nearly doubling compared with the previous quarter.
SpaceX previously signed a similar computing-power agreement with Anthropic. SpaceX’s xAI subsidiary is working to transform the company into a provider of compute infrastructure, and set that as a core business in its IPO.
FAQ
Why did Google choose to sign this deal with SpaceX rather than other cloud providers?
A Google spokesperson explained that the purpose of this agreement is to ensure “transitional capacity” in case demand for Gemini Enterprise exceeds expectations. The deal is described as a short-term, timely arrangement, with Google Cloud’s order backlog already exceeding $460 billion. SpaceX has already completed similar arrangements with Anthropic, suggesting it is building a commercial model for becoming a compute infrastructure provider.
If SpaceX fails to deliver the Nvidia chips on time, what can Google do?
According to SpaceX’s regulatory filing, if SpaceX fails to deliver the Nvidia chips by September 30, 2026, Google has the right to terminate the contract, but it will grant a one-month grace period.
What are the specific issuance terms of SpaceX’s IPO?
On June 7, 2026, SpaceX listed on Nasdaq, issuing about 555.6 million shares at $135 per share, valuing the company at about $1.8 trillion. Reports say this IPO is expected to become the largest IPO in history.
