Google (GOOG, GOOGL) has agreed with SpaceX to rent computing capacity from the rocket company to power its AI capabilities.
In a filing, SpaceX (SPAX.PVT) said Google will pay $920 million per month to rent 110,000 Nvidia (NVDA) GPUs, CPUs, and memory, as well as related components from Oct. 2026 through June 2029, with computing capacity beginning to ramp in Sept. 2026.
If SpaceX doesn’t make the GPUs available by Sept. 30, 2026, it has a one-month grace period to deliver on the capacity, or Google can kill the deal.
Both parties will also have the option to terminate the agreement with 90 days’ notice after Dec. 31, 2026.
The filing comes just shy of a month after SpaceX agreed to rent all of its GPU capacity, more than 220,000 Nvidia chips, at its Colossus 1 data center to Anthropic (ANTH.PVT).
Musk previously folded its xAI operation into SpaceX, dubbing the new company SpaceXAI.
That company operates Grok AI, a chatbot that competes with Claude, Google’s Gemini, and OpenAI’s C and ChatGPT.
But Grok hasn’t kept pace with its three competitors, relegating it to an also-ran status.
SpaceX is preparing to go public in what is one of the most anticipated initial public offerings in history at a share price of $135. If the company pulls it off it would have a market valuation of $1.785 trillion.
Email Daniel Howley at dhowley@yahoofinance.com. Follow him on X at @DanielHowley.
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