Artificial intelligence is becoming increasingly expensive and tech companies are scrambling to secure enough computing power to keep up with demand. Now, a newly disclosed agreement shows just how far some firms are willing to go. According to a recent Securities and Exchange Commission (SEC) filing by SpaceX, Google has agreed to pay Elon Musk’s company $920 million every month for access to computing infrastructure as part of a cloud-services agreement that runs through mid-2029. The deal was revealed only days before SpaceX is expected to begin trading publicly on the Nasdaq exchange.
A Massive AI Infrastructure Agreement
As outlined in the SEC filing, Google will pay the monthly fee from October 2026 through June 2029. The agreement includes a ramp-up period that begins earlier, with reduced pricing through September. The filing states that the compute capacity includes approximately 110,000 Nvidia GPUs, CPUs, memory systems and related hardware components. These resources are essential for training and operating advanced AI models. The agreement also contains an important condition. If SpaceX fails to provide the guaranteed compute capacity by September 30, Google has the option to terminate the contract after a one-month grace period.
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Why Google Needs More Compute
In a statement, Google said the agreement was driven by unexpectedly strong demand for its AI services. “Google Cloud and SpaceX are long-time partners,” the company said. It added, “This is a short-term, timely agreement to ensure we have bridge capacity to meet surging customer demand for our agent platform, Gemini Enterprise, which has been even higher than we expected.” The search giant also confirmed that it will retain ownership of its AI models, data and intellectual property under the arrangement.
Similar To SpaceX’s Anthropic Deal
The Google agreement follows another major AI infrastructure deal announced by SpaceX earlier this year. In May, AI giant Anthropic agreed to pay SpaceX roughly $1.25 billion per month through 2029 to access compute capacity from the Colossus 1 data centre near Memphis, Tennessee. That facility was originally built to support Musk’s xAI ambitions. Combined, Google and Anthropic are expected to pay SpaceX around $2.17 billion every month for computing resources.
