Google struck $920 million-a-month AI capacity deal with SpaceX
What's new: The contract runs through June 2029 for about 110,000 Nvidia GPUs, with Google able to walk away if capacity misses a Sept. 30 deadline.
Google signed a deal to buy AI computing capacity from SpaceX worth $920 million a month, giving Elon Musk's company a major revenue boost days before its planned IPO. A regulatory filing said Google will use roughly 110,000 Nvidia GPUs plus related processors, memory and other hardware in SpaceX data centers. The agreement starts ramping this year and runs at the full monthly rate from October through June 2029. If SpaceX fails to provide the committed GPU capacity by Sept. 30, 2026, Google can terminate the contract immediately or accept fewer chips at a lower fee after a one-month grace period. Google said it needs the extra capacity to meet stronger-than-expected demand for Gemini Enterprise.