Alphabet Commits $11.04B Annual GPU Compute Spend with SpaceX
Alphabet’s $920 million monthly GPU compute deal with SpaceX guarantees $11.04 billion in annual Google Cloud revenue, bolstered by Anthropic’s separate $1.25 billion monthly commitment. These large-scale contracts underscore Google Cloud’s growing enterprise traction and could drive upward revisions to revenue forecasts.
1. Alphabet Secures Major GPU Compute Contract
Alphabet will pay SpaceX $920 million monthly for GPU compute access, guaranteeing $11.04 billion in annual revenue for Google Cloud and marking one of the largest single-customer commitments in the segment.
2. Anthropic’s Monthly Commitment Boosts Cloud Revenue
Anthropic agreed to a $1.25 billion monthly agreement for GPU compute, adding $15 billion in annual revenue, bringing total guaranteed cloud sales from these two deals to approximately $26 billion.
3. Implications for Google Cloud Growth
These multi-billion dollar agreements enhance Google Cloud’s enterprise credentials, are likely to support higher growth forecasts, and strengthen its competitive positioning against other leading cloud providers.
