Alphabet Secures $920M Monthly Compute Deal as Waymo Recalls 3,871 Robotaxis
GOOG•Alphabet has contracted SpaceX for $920 million per month of compute capacity over 32 months to support AI infrastructure, raising annual costs by more than $11 billion. Meanwhile, Waymo recalled 3,871 robotaxis after a Fifth Generation Automated Driving Systems software defect forced restrictions on freeway operations pending an over-the-air update.
1. Alphabet Signs $920M/Month Compute Capacity Deal
In June, Alphabet's cloud division contracted SpaceX for compute capacity worth $920 million per month over 32 months to handle surging AI workloads and offset internal data center investments.
2. Waymo Recalls 3,871 Robotaxis Over Software Defect
The Waymo unit has recalled 3,871 Fifth Generation Automated Driving Systems robotaxis after identifying a software flaw causing vehicles to enter closed freeway construction zones at speed, temporarily limiting freeway operations.
3. Operational and Financial Implications
The compute deal boosts cloud infrastructure but raises costs by over $11 billion annually, while the Waymo recall underscores regulatory risks and may delay deployment timelines pending the over-the-air fix.
