SpaceX signs major AI computing deal with Google ahead of IPO

June 06, 2026 / 8:54 PM

Sharjah 24 – AFP: SpaceX has signed a major cloud computing agreement with Google under which the tech giant will pay the company $920 million per month for access to a large cluster of artificial intelligence chips, according to disclosures in SpaceX’s initial public offering (IPO) filing.

The agreement covers approximately 110,000 Nvidia GPUs, which are used to power Google’s Gemini AI models. Google is expected to begin paying the full monthly amount in October 2026, following a ramp-up period with reduced fees.

Deal could generate $30 billion through 2029

The contract runs until June 2029 and is expected to generate around $30 billion in total payments. It follows a similar agreement with Anthropic, which leased computing capacity at SpaceX-operated data centres in Memphis, Tennessee.

The IPO filing also revealed that xAI, Elon Musk’s artificial intelligence venture, recorded an operating loss of $6.4 billion last year on revenue of $3.2 billion.

IPO set to value SpaceX at $1.8 trillion

Google said the deal is intended to meet growing demand for its Gemini Enterprise platform. The agreement can be terminated by either party with 90 days’ notice after December 31.

The deal comes ahead of SpaceX’s planned IPO on June 12, which is expected to be the largest in history and could value the company at $1.8 trillion, driven by investor confidence in its Starlink satellite business, AI infrastructure ambitions and long-term plans for Mars exploration.