SpaceX lands Google GPU deal as record IPO countdown begins

SpaceX has secured a major compute agreement withGoogle ahead of its planned Nasdaq listing, adding another large customer to its expanding AI infrastructure business.

A regulatory filing by SpaceX said Google will pay the company $920 million per month from October 2026 through June 2029 for access to about 110,000 NVIDIA GPUs, CPUs, memory, and other related equipment. The filing said Google’s access will begin at a lower fee as the service ramps up through September.

Google turns to SpaceX for AI capacity

The agreement comes as Google faces rising demand for its AI products. In a statement, a Google representative said Google Cloud and SpaceX have worked together for years and described the contract as a short-term capacity arrangement.

According to Google, demand for its agent platform, Gemini Enterprise, has been higher than expected. The company said the SpaceX deal will provide bridge capacity while it works to meet customer needs.

Unlike Anthropic, Google already controls one of the world’s largest AI compute footprints, according to outside estimates cited in the report. However, Alphabet’s own spending plans show the pressure created by the AI race. Alphabet has committed more than $180 billion in capital expenditures this year and has said spending will rise significantly in 2027. The company also recently announced an $80 billion equity sale.

Deal follows Anthropic agreement

SpaceX’s new contract with Google follows a similar deal announced in late May with Anthropic. Under that agreement, Anthropic agreed to pay SpaceX $1.25 billion per month through 2029 for compute capacity from the Colossus 1 data center near Memphis, Tennessee.

The report said Colossus 1 was originally built by xAI, which is now part of SpaceX, for its own artificial intelligence work. Anthropic raised usage limits on the same day its deal with SpaceX was announced, after facing compute limits before the agreement.

Google’s deal appears to cover about half the compute made available to Anthropic at Colossus 1. SpaceX did not identify which data center Google will use. Elon Musk has previously said Colossus 2 may be reserved for xAI, according to the report.

Cancellation terms give both sides flexibility

The regulatory filing said both SpaceX and Google can terminate the agreement with 90 days’ notice after December 31, 2026. The filing also includes a delivery condition tied to GPU access.

If SpaceX fails to provide the committed GPU capacity by September 30, 2026, Google may end the agreement after a one-month grace period, according to the filing. Google may also accept the available number of GPUs and receive a reduction in monthly fees.

IPO plans add weight to compute strategy

SpaceX announced the Google agreement one week before its stock is expected to begin trading on Nasdaq. SEC paperwork shows the company plans to raise about $75 billion at a valuation near $1.75 trillion, which would make it the largest IPO in history.

Google is already a long-time SpaceX investor. Its stake is expected to be worth more than $100 billion after the listing, according to the report. The two companies are also reportedly discussing orbital data centers, a project tied to SpaceX’s plans after the IPO.