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Google to Pay SpaceX Nearly $1 Billion a Month in Cloud-Computing Deal
Google is betting nearly $1 billion per month on SpaceX data center capacity to secure hardware supply for its cloud operations.
What: Google agreed to pay SpaceX $920 million monthly from October 2026 to June 2029 to rent data center capacity. The deal hinges on the delivery of 110,000 Nvidia chips, and SpaceX is currently valued at $1.77 trillion ahead of its June 12 IPO.
Why it matters: This move highlights how hyperscalers are increasingly desperate for compute infrastructure, forcing them to treat launch providers like SpaceX as critical data center infrastructure partners to meet hardware demand.
Original article
Google will pay SpaceX $920 million per month from October 2026 to June 2029 to rent data center capacity. Google has the right to cancel the agreement in October if SpaceX doesn't provide the promised 110,000 Nvidia chips. Either party can cancel the agreement starting next year with 90 days' notice. This is the second major deal SpaceX has made in recent months to rent out compute capacity to a competitor. SpaceX is expected to go public on June 12 in a public offering that values the company at $1.77 trillion.
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