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Google to Pay SpaceX $920M Monthly for Compute

Google to Pay SpaceX $920M Monthly for Compute

October 18, 2026
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Google to Pay SpaceX $920M Monthly for Compute

SpaceX has secured another major compute agreement ahead of its landmark IPO, this time partnering with Google. The company disclosed the arrangement in a regulatory filing on Friday.

According to the agreement, Google will pay SpaceX $920 million monthly from October 2026 through June 2029 for access to “approximately 110,000 NVIDIA GPUs, CPUs, memory, and other related components.”

This arrangement mirrors the scope and duration of the deal SpaceX announced with Anthropic in late May. Under that agreement, Anthropic committed to paying SpaceX $1.25 billion monthly through 2029 to lease all available compute from its Colossus 1 data center near Memphis, Tennessee, originally constructed by xAI — now integrated into SpaceX — for its own artificial intelligence initiatives.

Google’s agreement appears to cover roughly half the compute capacity available to Anthropic at Colossus 1. SpaceX did not specify which data center Google will utilize. CEO Elon Musk has previously indicated that Colossus 2 would be reserved for xAI.

Anthropic faced significant compute constraints before its deal with SpaceX, prompting usage limit increases on the same day the agreement was announced. Google, however, holds a vastly different position, with estimates identifying it as the world’s largest single owner of AI compute.

Nevertheless, its parent company, Alphabet, is engaged in aggressive spending. Alphabet has already committed to over $180 billion in capital expenditures this year and projects that this figure will “significantly increase” in 2027. To support this, Alphabet recently announced an $80 billion equity offering.

Similar to the Anthropic deal, the Google agreement includes a cancellation clause. Both SpaceX and Google may terminate the contract with 90 days’ notice after December 31, 2026. Google’s access to the data center will scale “through September at a reduced fee,” according to the filing.

“If we fail to deliver access to the committed amount of GPUs by September 30, 2026, then following a one-month grace period, Google may immediately terminate the agreement or accept the number of GPUs provided” with a corresponding reduction in monthly fees, it states.

SpaceX announced the deal just one week before its stock is expected to begin trading on the Nasdaq exchange. Documents filed with the Securities and Exchange Commission indicate the company aims to raise approximately $75 billion at a valuation of around $1.75 trillion, potentially making it the largest IPO in history.

Google has been a long-time investor in SpaceX. Its stake in Musk’s company is projected to exceed $100 billion post-IPO. The companies are also reportedly discussing plans to build orbital data centers, a key element of SpaceX’s post-IPO strategy.

This story is developing. Check back for updates.

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