Google Cloud inks $920M/month SpaceX GPU rental deal through 2029
GOOG•Google has agreed to pay SpaceX $920 million per month to rent 110,000 Nvidia GPUs, CPUs and memory from October 2026 through June 2029, with capacity ramping in September 2026. The deal boosts SpaceX’s revenue streams and strengthens Google Cloud’s AI compute supply.
1. Deal Details
Google will pay SpaceX $920 million each month to rent 110,000 Nvidia GPUs, CPUs and memory modules under a three-year agreement spanning October 2026 through June 2029. Capacity is set to begin ramping in September 2026 as SpaceX commissions its Colossus 1 data center for external clients.
2. Financial Impact
The arrangement represents an annual commitment exceeding $11 billion to SpaceX, providing a substantial new revenue stream. For Google Cloud, the agreement secures dedicated AI compute capacity that could materially enhance infrastructure-driven sales.
3. Strategic Context
This partnership highlights Google Cloud’s strategy to lock in high-performance compute resources amid intensifying AI competition. Securing such scale reinforces its positioning against rivals and supports the development and deployment of large-scale AI models.
4. Cancellation Clauses
Each party retains a 90-day cancellation window, offering flexibility to adjust commitments based on evolving compute needs. These clauses mitigate long-term risk for both Google and SpaceX should market conditions shift.
