According to SpaceX’s filing on Friday, Google will remit the monthly payment from October 2023 through June 2029, totaling approximately $30 billion during the duration of the agreement.
In the event SpaceX does not provide access to Nvidia Corp. chips by September 30, Google retains the right to terminate the contract, with a grace period of one month, as stated in the filing.
A spokesperson for Google Cloud mentioned that this deal will assist in addressing the increasing demand for its AI services. In its latest earnings report, Alphabet noted that Google Cloud’s backlog — a metric for contracted work yet to be recognized as revenue — has nearly doubled from the previous quarter, surpassing $460 billion.
“This is a timely, short-term agreement to secure bridge capacity to satisfy the surging customer demand for our agent platform, Gemini Enterprise, which has exceeded our expectations,” the Google spokesperson conveyed in a statement.
Previously, SpaceX had a comparable agreement with Anthropic PBC. The company, led by Musk, is utilizing its xAI subsidiary to bolster revenue and pivot its AI division into a compute infrastructure provider — a fundamental aspect highlighted in its initial public offering.
This initiative has developed over the past three years in Memphis, Tennessee, and is now expanding into Mississippi.
The agreement allows Google access to 110,000 Nvidia graphics processing unit chips, alongside CPU chips, memory chips, and other associated components. Based on Nvidia’s H200 chip capabilities, this could equivalently offer over 100 megawatts of computing power — enough to supply energy to 75,000 homes at any moment.
The dynamic between Google and SpaceX involves both collaboration and competition.
Earlier in the year, SpaceX revealed that Google LLC held a 6.11% stake in the company as of the end of 2025. Following February’s merger of SpaceX with xAI, Musk’s artificial intelligence and social media venture, Google’s stake likely stands around 5% of SpaceX, according to Bloomberg estimates.
The cloud agreement is not the only negotiation between Google and SpaceX. The two companies have discussed the potential launch of Google’s pilot products for orbital data centers, as reported by a source familiar with the discussions in May. Google has also indicated exploring arrangements with other launch providers for a project termed Project Suncatcher.
As disclosed on Friday, either entity has the option to end the agreement with a 90-day notice — a provision shared with the Anthropic arrangement.
Additionally, SpaceX, through its AI sector, has a deal with the startup Cursor, granting it the option to acquire the company for $60 billion or pay a $10 billion break-up fee. Both Cursor and xAI are already partnering on computing resources and coding, as reported by Bloomberg.
