Google SpaceX Compute Deal: $920M Monthly, Filing Reveals

Google's paying SpaceX $920 million monthly. It covers about 110,000 Nvidia GPUs, CPUs, memory, and related components from October 2026 through June 2029. But the deal was disclosed in a Friday regulatory filing a week before SpaceX's stock is expected to begin trading on Nasdaq, where the company aims to raise $75 billion at roughly $1.75 trillion valuation. It's the largest IPO in history.

A $30 Billion Bridge

Over the life of the contract, the Google SpaceX compute deal is worth roughly $30 billion, and the capacity will ramp up through September at a reduced fee before full payments kick in. But Google can walk away. If SpaceX doesn't deliver the committed GPU capacity by 30 September 2026, Google can either walk away after a one-month grace period or accept whatever hardware is available at a proportionally lower rate. Both this deal and the Anthropic agreement include a 90-day cancellation clause that takes effect after 31 December 2026.

Half the Colossus

The structure closely mirrors the deal SpaceX struck with Anthropic in late May. That earlier contract gives Anthropic the entire output of Colossus 1,the Memphis data centre that xAI originally built for its chatbot, Grok,for $1.25 billion a month through 2029. Google’s arrangement covers roughly half that compute. SpaceX did not specify which facility will serve Google, though CEO Elon Musk has indicated that Colossus 2 would be reserved for xAI’s own work.

Google’s Unexpected Handout

Google isn't compute-poor. But some estimates label it the world's largest single owner of AI compute, driven largely by custom TPU chips. The company committed more than $180 billion in capital expenditure this year and expects that figure to "significantly increase" in 2027, and Alphabet recently announced an $80 billion equity sale to help fund that spending.

But demand is running ahead of even those numbers.

“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,” a Google representative said.

For a company sinking $180 billion a year into infrastructure, renting Nvidia GPUs from a rocket company is an unusually public admission that its own data centre buildout cannot keep pace with enterprise appetite.

From Cost Sink to Cash Flow

XAI built Colossus to train Grok. But it's reportedly dropped. So rather than letting the hardware sit idle, SpaceX is renting it to the two companies that need it most urgently, and the Google SpaceX compute deal transforms a cost centre into a revenue engine.

Anthropic was severely capacity-constrained before its agreement. But Google can't build fast enough. Now, between the two contracts, SpaceX collects approximately $2.17 billion in monthly compute revenue, roughly $26 billion annualised, and that stream will figure prominently in the IPO prospectus.

IPO Rocket Fuel

It's one week from filing. So it's chasing $1.75 trillion valuation, compute revenue from Google SpaceX compute deal adds a fresh recurring line to its story, and Google's longtime stake is expected to be worth over $100 billion after listing.

Orbital Data Centres

Two companies are in talks. But they're reportedly in talks to build orbital data centres, a major component of SpaceX's post-IPO plans, extending their relationship far beyond a simple rental, turning a short-term fix into a long-term infrastructure bet.

What the Market Is Asking

They're staggering. But a deeper tension surfaces. The world’s largest search company is renting Nvidia GPUs from the world’s largest rocket company because demand for AI compute has outpaced even the most aggressive infrastructure buildouts.

It's SpaceX's $1.75 trillion valuation. But the question hanging over it is whether that demand can sustain itself or if it's just the peak of a cycle that will correct. Cancellation clauses, phased ramp-up, and limited contract duration all hint this bridge may be as temporary as Google insists.

• Google pays $920 million/month from October 2026 to June 2029 for 110,000 Nvidia GPUs plus CPUs, memory, and components.
• Anthropic pays $1.25 billion/month for the full output of Colossus 1 through 2029.
• Both deals include a 90-day cancellation option after 31 December 2026.

• Access ramps through September 2026 at a reduced fee.
• If GPU capacity isn’t ready by 30 September 2026, Google can terminate after a one-month grace period or take whatever hardware is available at a proportionally reduced rate.