Google Commits to a $30B Contract for SpaceX’s xAI Data Centers
In a staggering revelation of cloud-compute agreements, Google has committed to a deal with SpaceX to pay a whopping $920 million per month. This deal allows Google access to AI computing capacity at data centers initially established by xAI, Elon Musk’s AI company, which was later incorporated into SpaceX through an all-stock merger in 2026.
The deal, disclosed on June 5 via a SpaceX SEC filing preceding the company’s historic IPO, spans from October 2026 to June 2029. It amounts to roughly $32 billion over its entire term. As part of the agreement, Google will have access to approximately 110,000 NVIDIA GPUs in addition to CPUs, memory, and related components.
Describing the deal, a Google Cloud spokesperson referred to it as a “bridge capacity” solution. This arrangement is designed to cater to the increasing demand for its Gemini Enterprise platform, serving large businesses and experiencing explosive growth. This deal highlights the intriguing paradox of the AI era where even the world’s most resource-rich tech giants struggle to build compute infrastructure at a pace that matches the demand.
This agreement echoes a similar deal that SpaceX had with Anthropic in May. In this deal, Anthropic agreed to pay $1.25 billion per month for access to SpaceX’s complete Colossus 1 data center near Memphis, Tennessee. SpaceX is slated to go public on the Nasdaq on June 12, targeting a valuation of over $1.75 trillion — a figure that could potentially make it the largest IPO in history.
Source: TechCrunch — Google will pay SpaceX $920M per month for compute