SpaceX and Google have entered into a multi-year cloud services agreement. Google will pay SpaceX $920 million monthly from October 2024 to June 2029 for approximately 110,000 Nvidia GPUs, CPUs, and memory components. The deal's total value for disclosed compute-capacity agreements exceeds $70 billion.
SpaceX has entered into a multi-year cloud services agreement with Alphabet's Google, securing significant computing capacity. The deal, valued at $920 million per month, is set to run from October 2024 until June 2029. During an initial ramp-up period through September, Google will pay a reduced fee. The agreement specifies the provision of approximately 110,000 Nvidia GPUs, CPUs, and memory components. Google holds the right to terminate the contract if SpaceX fails to deliver the agreed-upon GPUs by September 30, following a one-month grace period. Either party can also terminate the agreement with 90 days' notice after December 31. Google will retain ownership of its content, AI models, and data. This arrangement mirrors a previous pact where Anthropic will utilize the full computing power of SpaceX's Colossus 1 facility, which is equipped with over 220,000 Nvidia processors. Collectively, SpaceX's disclosed compute-capacity agreements with Anthropic and Google are valued at over $70 billion.
This significant deal highlights the growing demand for AI infrastructure and compute power, with SpaceX positioning itself as a key provider of these resources, expanding its business scope beyond space launches.