SpaceX has sealed another major deal to rent out compute for Artificial Intelligence, this time with Google. The terms were disclosed in a filing with the U.S. Securities and Exchange Commission. Google has committed to pay SpaceX $920mn per month for access to about 110,000 Nvidia GPUs, CPUs, memory, and other related components.
The arrangement is set to start in October and last until June 2029, according to SpaceX. Should SpaceX fail to provide access to the agreed number of GPUs by September 30, Google will have the option to terminate the agreement with a one-month grace period or accept the number of GPUs provided and pay a reduced pro rata fee. After Dec. 31, either party can end the agreement with 90 days’ notice. But should it run its full 32-month term, SpaceX stands to take in more than $30bn.
The Google agreement follows a similar arrangement with Anthropic, which was confirmed in early May. Under the terms of that deal, the Claude creator is renting 300 megawatts of compute capacity at SpaceX’s Colossus data centers in Tennessee for $1.25bn a month. SpaceX had hinted that more deals were likely when the Anthropic agreement was made public last month.
SpaceX’s IPO is expected as soon as this week, when it is seeking a valuation in the region of $1.75tn, and becoming a key provider of Artificial Intelligence infrastructure appears central to its strategy. The Financial Times calculated that the Anthropic and Google deals alone will contribute more than $26bn to the conglomerate’s annual revenue. Google said the agreement will provide bridge capacity to meet surging customer demand for Gemini Enterprise. At the start of June, Google parent company Alphabet launched an equity sale of $80bn as part of an effort to fund investments in its Artificial Intelligence compute infrastructure.
