In a dramatic reversal of roles, Google has agreed to pay SpaceX/AI roughly $920 million per month for 32 months to rent the company's massive computing capacity. Just five years ago, it was Google supplying computing resources to SpaceX for Starlink.
The deal comes days before SpaceX's planned IPO. Since acquiring xAI in February 2026, SpaceX now operates several massive US data centers-known as "Colossus"-with over 2 GW of total capacity. The combined entity, called SpaceX/AI, is valued at an estimated $1.25 trillion.
Under the agreement, Google will use 110,000 Nvidia GPUs deployed in SpaceX's data centers from October 2026 through June 2029. If SpaceX fails to deliver the committed GPUs by September 30, 2026, Google can terminate the contract or accept reduced capacity at a lower fee.
This marks the second major infrastructure deal for SpaceX/AI following the merger with xAI, following a similar arrangement with Anthropic in May. Google's parent Alphabet initially invested in SpaceX in 2015, when the company was worth only $12 billion. Now, SpaceX is targeting a public valuation of over $1.75 trillion, with this deal expected to boost that number.
Despite the financial headlines, Musk's Grok AI model has not yet turned profitable. Meanwhile, a global regulatory backlash over non-consensual explicit content generated via Grok has triggered multiple lawsuits and state probes, which could lead to fines of up to 4% of worldwide annual revenue in the UK alone.