Google Inks $920M/Month SpaceX Compute Deal Days Before Record IPO

SpaceX disclosed a regulatory filing showing Google will pay $920 million monthly from October 2026 through June 2029 for roughly 110,000 NVIDIA GPUs plus supporting infrastructure. The arrangement mirrors the structure of SpaceX’s late-May contract with Anthropic, which committed $1.25 billion per month for the full capacity of the Colossus 1 data center in Memphis — originally built by xAI before its absorption into SpaceX. Google’s allocation appears to be about half that footprint, and the specific facility was not named, though Musk has signaled Colossus 2 is being held back for xAI’s own work.

Google framed the deal as bridge capacity to absorb surging demand for Gemini Enterprise, its agent platform. That framing is notable given Google is widely considered the largest single owner of AI compute on the planet, suggesting even hyperscalers with vertically integrated TPU fleets are getting squeezed by inference demand. Alphabet has already committed over $180 billion in 2026 capex, with further increases telegraphed for 2027, and recently announced an $80 billion equity raise to help fund it.

The timing is pointed: SpaceX begins trading on Nasdaq next week at a targeted $1.75 trillion valuation, which would be the largest IPO in history. Google is a longtime SpaceX investor with a stake projected above $100 billion post-listing, and the two are reportedly exploring orbital data centers as a longer-term play. Both sides retain 90-day termination rights after the end of 2026, and SpaceX faces fee reductions if it misses the September 2026 GPU delivery target.