Google Agrees €920M Monthly Deal for 110,000 GPUs from SpaceX ahead of IPO
GOOG•Google will pay €920 million per month for 32 months to rent SpaceX/AI’s computing capacity, including 110,000 Nvidia GPUs from October 2026 to June 2029. The deal precedes SpaceX’s IPO at a targeted $1.75 trillion valuation, potentially boosting its valuation and supporting Google’s AI expansion.
1. Deal Terms
Google will pay €920 million per month for a 32-month term to access SpaceX/AI’s data centers, marking a shift from their prior arrangement where Google provided compute resources to SpaceX.
2. GPU Allocation and Timeline
Under the agreement, Google gains access to 110,000 Nvidia GPUs and associated processors and memory components deployed across SpaceX’s Colossus data centers, with usage scheduled between October 2026 and June 2029 and a termination clause if capacity commitments aren’t met by September 30, 2026.
3. Impact on SpaceX IPO
This infrastructure deal was struck days before SpaceX plans to go public at a valuation above $1.75 trillion, and the guaranteed revenue stream is expected to reinforce investor confidence and potentially lift the IPO price.
4. Implications for Google's AI Expansion
The arrangement secures substantial additional compute for Google’s AI platforms and enterprise AI services, enabling it to meet surging demand without the capital outlay of building new data centers.
