SpaceX signs pre-IPO deal to provide AI computing to Google

The deal, which will bolster SpaceX’s finances ahead of its IPO on June 12, covers a computing infrastructure of approximately 110,000 Nvidia graphics processing units (GPUs) — the crucial hardware needed to power Google’s Gemini AI models.The filing says Google will begin paying the full monthly rate in October 2026, with a reduced fee applying during a ramp up period until then.The agreement runs through June 2029, implying total payments of roughly $30 billion over the life of the contract.SpaceX said if it does not provide access to the agreed number of GPUs by Sept. 30, Google may immediately terminate the agreement or accept the number of GPUs provided, with a corresponding pro rata reduction in the mo​nthly fees after a one-month grace period.The deal resembles one struck with AI giant Anthropic, in which SpaceX leased compute capacity at its Colossus data centers in Memphis, Tennessee, for $1.25 billion a month.The facilities were originally built to power Musk’s rival AI venture, xAI.SpaceX’s IPO filing revealed that xAI last year posted an operating loss of $6.4 billion on total revenue of $3.2 billion.“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,” a Google Cloud spokesman said in an email to Agence France-Presse (AFP).The deals with Google and Anthropic come just days ahead of SpaceX’s IPO, which will be the biggest in history, valuing the company at $1.8 trillion.That valuation is largely based on faith that Musk can deliver on his ambitions to vastly expand his Starlink satellite business, put data centers into space using SpaceX rockets, as well as begin colonizing Mars.