Elon Musk’s SpaceX has secured a deal with Google’s parent company Alphabet to receive $920 million per month for cloud computing services from October 2026 to June 2029. This contract, as per a US exchange filing, amounts to a total of about $30 billion over its duration. Google will have access to 110,000 Nvidia graphics processing units, CPUs, memory, and related components under this agreement.
The computing power provided by Nvidia’s H200 chips in this deal is estimated to be over 100 megawatts, equivalent to powering 75,000 homes simultaneously. If SpaceX fails to provide access to Nvidia chips by September 30, Google has the right to terminate the contract lawfully, with a one-month grace period. Both parties can also end the agreement with a 90-day notice period.
A Google Cloud spokesperson mentioned that this deal will assist the company in meeting the rising demand for its AI services. Alphabet reported in its quarterly earnings that Google Cloud’s backlog, representing contracted work not yet recorded as revenue, has nearly doubled to over $460 billion sequentially.
According to reports, this agreement is a short-term measure to address the increasing demand for Google’s agent platform, Gemini Enterprise. SpaceX had previously entered a similar deal with Anthropic PBC. Despite xAI’s coding capabilities lagging, it is focusing on its strength in data center infrastructure, with facilities in Memphis, Tennessee, and expansion plans in Mississippi.
SpaceX revealed earlier this year that Google held a 6.11% stake in the company by the end of 2025, which reduced to around 5% after Google’s stake in SpaceX post the xAI merger.
