SpaceX announced that it has secured a substantial deal with Google, set to bring in $920 million monthly. This agreement is intended to support SpaceX’s efforts as it prepares for a significant initial public offering.
Starting in October and lasting until June 2029, this partnership could earn SpaceX a total of around $30 billion. The deal positions SpaceX, along with its AI lab xAI, as a key infrastructure provider amidst intense global competition in the artificial intelligence sector.
Under the agreement, Google gains access to approximately 110,000 AI chips from Nvidia. This is expected to help Google meet the increasing demand for its AI models. Earlier, Google had reported having $460 billion in cloud business contracts pending as revenue, highlighting the high demand for its services.
“Google Cloud and SpaceX are longtime partners,” stated a Google Cloud spokesman. “This agreement allows us to ensure we have the capacity to meet the unexpected high demand for our agent platform, Gemini Enterprise.”
SpaceX has not commented on the deal as of now. Last month, SpaceX signed a similar contract with Anthropic, another AI lab set to go public, valued at $1.25 billion per month.
SpaceX’s upcoming public offering could see the company valued at over $1.7 trillion, potentially making Elon Musk a trillionaire. As it prepares for this, SpaceX has disclosed more of its financial details, aiming to attract investors.
Musk has developed a massive supercomputer in Memphis for xAI, although the company trails behind counterparts such as OpenAI, Anthropic, and Google. Recently, he emphasized turning xAI’s computing capability into revenue through partnerships with Anthropic and Google, showcasing its potential.
Additionally, Musk announced a large chip manufacturing facility in Texas. In April, SpaceX embarked on a $60 billion deal to acquire Cursor, a startup specializing in a code-writing assistant.
This deal with Google strengthens the ties between the two firms. Google already possesses a roughly 5 percent stake in SpaceX and is considering using SpaceX as a launch partner for its Project Suncatcher, an initiative aimed at establishing data centers in space.
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