Following a data centre compute agreement with Anthropic, Elon Musk's SpaceX has announced a new partnership with Google parent Alphabet under which the rocket company will provide computing capacity to the search giant under a cloud services contract that will be in effect from October 2026 to June 2029.
According to SpaceX's exchange filing in the US, Google has agreed to pay it $920 million a month for access to 110,000 Nvidia graphics processing units (GPUs) as well as central processing units (CPUs), memory, and related components. Over the life of the agreement (33 months), the total fee for the contract amounts to roughly $30 billion.Based on the capacity of Nvidia’s H200 chips, the setup could deliver more than 100 megawatts of computing power—enough to supply electricity to approximately 75,000 homes at once.According to the filing, if SpaceX fails to provide access to Nvidia chips by September 30, Google may lawfully terminate the contract after a one‑month grace period. In addition, either party retains the right to end the agreement with 90 days’ notice.
A Google Cloud spokesperson said the deal would help the company keep up with rising demand for its AI services. "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," the spokesperson said in a statement.ALSO READ: Nothing Co-Founder Explains How AI Data Centres Are Driving Up Smartphone Prices
SpaceX revealed earlier this year that Google held a 6.11 per cent stake in the company as of the end of 2025. Following SpaceX’s merger with Musk’s xAI, Google’s ownership was reduced to about 5 per cent.Last month, SpaceX signed a similar agreement with Anthropic, providing access to its massive, gigawatt-scale Colossus AI data centres in Memphis, Tennessee. In its S-1 filing, SpaceX revealed that Claude maker agreed to pay $1.25 billion per month through May 2029 for access to Colossus I and Colossus II. The total fee amounts to $15 billion annually, which could nearly double the $18.7 billion in revenue that SpaceX reported in all of 2025.
Analysts believe that even though xAI is lagging in terms of coding prowess, its edge lies in the data centre infrastructure built in Memphis. The company is also expanding its data centre capacity with new infrastructure in Mississippi.
