Google will pay SpaceX $920 million per month [1] for AI compute capacity at SpaceX’s xAI data centers.
The deal highlights the extreme demand for large-scale processing power as companies race to develop more advanced artificial intelligence models. For SpaceX, the agreement establishes a massive new revenue stream as the company prepares for an initial public offering.
The agreement provides Google access to approximately 110,000 NVIDIA GPUs [2]. This infrastructure is housed within xAI data centers, which are designed specifically for the high-intensity workloads required by modern AI training and inference.
According to available filings, the agreement runs through mid-2029 [3]. However, the contract includes a termination clause that could allow the deal to end as early as 2027 [3]. The filings also indicate a 90-day notice period is required for termination [2].
The announcement came this Friday [4]. The partnership allows Google to scale its compute capabilities without building additional physical data centers in the immediate term, while SpaceX leverages its hardware assets to generate predictable, high-volume cash flow.
While some reports describe the payment as nearly $1 billion a month [5], the specific figure cited in the filings is $920 million [1].
“Google will pay SpaceX $920 million per month for AI compute capacity”
This partnership signals a shift in the AI arms race where compute capacity has become a critical commodity. By outsourcing a portion of its needs to SpaceX, Google is prioritizing rapid scaling over total infrastructure ownership. Simultaneously, the deal significantly strengthens SpaceX's balance sheet and valuation ahead of its planned IPO by proving its xAI data centers can support the world's largest tech firms.
