New Delhi, June 6: SpaceX, led by Elon Musk, has announced a significant agreement with Alphabet, Google’s parent company. Under this deal, Google will pay $920 million monthly for computing power related to cloud services, spanning from October 2026 to June 2029.
According to a filing in the U.S. exchanges, the total value of this contract is approximately $30 billion, calculated based on monthly payments throughout the agreement’s duration.
SpaceX revealed that Google will gain access to 110,000 NVIDIA graphics processing units (GPUs), along with central processing units (CPUs), memory, and other related hardware. This capability will enhance Google’s AI services.
Based on the capacity of NVIDIA’s H200 chips, this arrangement is estimated to provide over 100 megawatts of computing power, equivalent to supplying electricity to around 75,000 homes at any given time.
The exchange filing states that if SpaceX fails to provide access to NVIDIA chips by September 30, Google will have the legal right to terminate the agreement. An additional one-month grace period has also been granted.
Furthermore, both parties will have the right to terminate the agreement with a 90-day notice.
Reports indicate that a spokesperson for Google Cloud stated this agreement will help the company meet the growing demand for its AI services.
Alphabet’s quarterly earnings report revealed that Google Cloud’s backlog—contracts that have yet to generate revenue—has surged to over $460 billion, nearly double compared to the previous quarter.
A Google spokesperson commented, “This is a timely and short-term agreement that provides us with additional capacity to meet the rising customer demand for our agent platform and Gemini Enterprise.” They noted that the demand for these services has grown even faster than the company’s expectations.
Previously, SpaceX had entered into a similar agreement with Anthropic PBC.
Analysts suggest that while X.AI may lag behind some competitors in coding capabilities, its greatest strength lies in its data center infrastructure. The company has developed large data centers in Memphis, Tennessee, and is now expanding into Mississippi.
Earlier this year, SpaceX disclosed that by the end of 2025, Google held a 6.11% stake in the company. However, after the merger of SpaceX with X.AI, Google’s stake has decreased to approximately 5%.
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