Google to Pay SpaceX $920M Monthly for 110,000 GPUs in $30B AI Deal
Google has signed a Cloud Service Agreement with SpaceX to access about 110,000 NVIDIA GPUs and related infrastructure, paying $920 million per month from October 2026 through June 2029. At full rates, the arrangement could cost Google over $30 billion across a 33-month term.
1. Deal Overview
Google’s Cloud Service Agreement secures access to approximately 110,000 NVIDIA GPUs along with CPUs, memory and infrastructure components. The pact spans from October 2026 through June 2029, with capacity ramping up through September at reduced fees before reaching full volume.
2. Contract Terms and Clauses
Google commits to $920 million in monthly payments over 33 months, potentially totaling over $30 billion. If SpaceX misses the GPU capacity deadline, Google has a one-month grace period to terminate or accept reduced capacity at pro-rata fees; after December 31, either party may exit with 90 days’ notice.
3. Strategic Context
This agreement bolsters Google’s AI compute backbone ahead of burgeoning demand for large-scale model training and inference. It follows a prior $45 billion compute deal with Anthropic and underscores SpaceX’s growing role as an AI infrastructure provider.
4. Financial Implications
The long-term fee commitment will add significant operational expenses to Google’s AI segment, potentially weighing on margins until revenue gains from AI-driven products materialize. The deal’s size reflects Google’s strategy to outsource capital-intensive compute capacity rather than build in-house facilities.
