Published on 06/06/2026 - 19:03 GMT+2

Google has entered into an agreement with SpaceX to lease the firm's computing resources. Under this pact, Google will pay 920 million dollars each month over a period of 32 months.

The situation has flipped compared to five years prior, when Google provided computing support to SpaceX for its Starlink satellite internet project.

Following SpaceX's acquisition of the AI company xAI in February 2026, both under Elon Musk's ownership, the entity now manages extensive data centers in the United States known as Colossus, boasting over 2 GW of computing power. The combined valuation of SpaceX and AI operations reaches approximately 1.25 trillion dollars.

This agreement was finalized shortly before SpaceX's upcoming IPO. Additionally, a comparable deal was revealed with Anthropic in May.

Alphabet, Google's parent, had invested in SpaceX back in 2015 at a valuation of 12 billion dollars. SpaceX now aims for a public listing valued above 1.75 trillion dollars, with this Google contract likely enhancing that figure.

"We believe our compute infrastructure and related strategy provide us with substantial flexibility in how we allocate and monetise capacity," SpaceX wrote in its IPO filing inside the section of "compute service agreements with third parties."

Over a hundred thousand dedicated processors

According to a regulatory submission on Friday, Google is set to utilize 110,000 Nvidia GPUs along with associated processors and memory in SpaceX data centers.

The usage period spans from October 2026 to June 2029.

According to the agreement, if SpaceX fails to deliver access to the committed amount of GPUs by September 30, 2026, Google can immediately terminate the agreement or accept the GPUs provided at a reduced fee after a one-month grace period.

The Google agreement marks the second major infrastructure deal announced by SpaceX following the merger with xAI.

Google is aiming to scale capacity to meet increased customer demand for AI platforms and agents, especially among large businesses, NBC reports.

Although Musk's Grok AI model has not yet been profitable, the world's richest entrepreneur showcases these deals with Google and Anthropic as a worthy return on the investment of large-scale data centres.

Meanwhile, deepfake pornography generated via Grok has triggered a global regulatory backlash against xAI, with the tech firm now facing multiple lawsuits and state probes over non-consensual explicit content, which may result in heavy fines. In the UK alone, data protection violations under the UK GDPR can lead to fines of up to 4% of worldwide annual revenue.