tech
Google to pay SpaceX $920M/month for AI compute
Google will pay SpaceX $920 million per month for access to 110,000 Nvidia GPUs through mid-2029, the second massive compute deal SpaceX has signed ahead of its record $75 billion IPO. Google called it bridge capacity for surging Gemini Enterprise demand.
TL;DR
- Google and SpaceX have finalized a compute deal worth approximately $30 billion, with Google paying $920 million per month for access to 110,000 Nvidia GPUs through mid-2029.
- This agreement precedes SpaceX's anticipated record $75 billion IPO, potentially boosting its revenue streams.
- Google described the deal as a short-term 'bridge capacity' solution to meet unexpected surge in demand for its Gemini Enterprise platform.
- The contract includes 90-day cancellation clauses after December 31, 2026, and provisions for reduced rates or immediate termination if SpaceX fails to deliver committed GPU capacity.
- This deal is notable given Google's own substantial AI compute resources, indicating a significant demand-supply imbalance in the AI compute market.
- SpaceX is also in a similar compute deal with Anthropic, collectively generating approximately $2.17 billion per month in compute revenue.
- The article questions the sustainability of current AI compute demand and its impact on SpaceX's valuation.