Google signs $920 million-a-month compute deal with SpaceX to meet surging AI demand

Google has entered into a major cloud infrastructure agreement with SpaceX that will see the technology giant pay $920 million per month for access to computing power through mid-2029, according to a filing submitted by the Elon Musk-led company to the US Securities and Exchange Commission (SEC).

One of the largest AI infrastructure agreements

The deal, one of the largest AI infrastructure agreements disclosed in recent years, highlights the growing demand for high-performance computing resources as technology companies race to expand artificial intelligence capabilities. It also underscores SpaceX's increasing role in the AI infrastructure sector as the company prepares for an anticipated stock market debut.

According to the SEC filing, the agreement begins in October 2026 and runs through June 2029, with computing capacity ramping up through September at a reduced cost. The infrastructure package includes approximately 110,000 Nvidia GPUs, CPUs, memory units and related components.

"On June 5, 2026, we entered into a Cloud Service Agreement with Google with respect to access to compute capacity. The customer has agreed to pay us $920 million per month from October 2026 through June 2029, with capacity ramping up through September at a reduced fee. The compute capacity provided includes approximately 110,000 NVIDIA GPUs, CPUs, memory, and other related components. After December 31, 2026, the agreement may be terminated by either party upon 90 days' notice. The customer will retain ownership of, and intellectual property rights in, its content, Al models, and related data," reads SpaceX's SEC filing.

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Strong demand for AI

The filing further noted that Google would have the right to terminate the contract if SpaceX fails to provide access to the guaranteed Nvidia chip capacity by September 30, subject to a one-month grace period.

Google said the agreement was driven by unexpectedly strong demand for its artificial intelligence services, particularly its Gemini Enterprise platform.

"Google Cloud and SpaceX are long-time partners," Google said in a statement.

It added, "This is a short-term, timely agreement to ensure we have bridge capacity to meet surging customer demand for our agent platform, Gemini Enterprise, which has been even higher than we expected."

Broader effort to monetise excess computing capacity

SpaceX said the strategy is part of a broader effort to monetise excess computing capacity while retaining the flexibility to redirect those resources for its own projects when necessary.

"This structure allows us to monetise unused compute capacity in our infrastructure, while still permitting reallocation of the capacity for our own internal initiatives if needed in the future."

Google is already one of SpaceX's major investors and is reportedly exploring future collaborations with the company, including the development of orbital data centres. Google CEO Sundar Pichai has previously spoken about the company's interest in space-based computing infrastructure, an area that could become increasingly important as demand for artificial intelligence computing continues to surge globally.