Google Commits $920M Monthly to Lease 110K Nvidia GPUs from SpaceX
Google 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 three-year contract includes a 90-day cancellation window, balancing AI compute flexibility against substantial service expenses.
1. Deal Terms
Google will pay SpaceX $920 million each month to rent 110,000 Nvidia GPUs, CPUs and associated memory from October 2026 through June 2029, with computing capacity beginning to ramp in September 2026. The agreement features a 90-day cancellation clause, mirroring terms in SpaceX’s other major compute contracts.
2. Financial Implications
This multiyear arrangement represents roughly $30.4 billion in aggregate obligations, shifting AI infrastructure from capital expenditures to operating expenses and preserving Google’s balance sheet. While recurring fees rise significantly, the structure avoids upfront data-center build costs and secures guaranteed compute availability.
3. Strategic Context
By outsourcing AI compute to SpaceX’s Colossus data centers, Google locks in large-scale capacity ahead of competitors and mitigates hardware procurement risks. The deal follows SpaceX’s $1.25 billion-per-month arrangement with Anthropic, underscoring a growing market for third-party AI infrastructure services.
