{"id":3130087,"date":"2026-06-05T11:57:20","date_gmt":"2026-06-05T18:57:20","guid":{"rendered":"https:\/\/techcrunch.com\/?p=3130087"},"modified":"2026-06-05T14:04:05","modified_gmt":"2026-06-05T21:04:05","slug":"google-will-pay-spacex-920m-per-month-for-compute","status":"publish","type":"post","link":"https:\/\/techcrunch.com\/2026\/06\/05\/google-will-pay-spacex-920m-per-month-for-compute\/","title":{"rendered":"Google will pay SpaceX $920M per month for compute"},"content":{"rendered":"\n<p id=\"speakable-summary\" class=\"wp-block-paragraph\">SpaceX has lined up another compute deal ahead of its historic IPO, this time with Google. The company announced the deal <a href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/1181412\/000162828026041150\/spacexagreementfwp.htm\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">in a regulatory filing on Friday<\/a>.<\/p>\n\n<p class=\"wp-block-paragraph\">Under the terms of the deal, Google will pay SpaceX $920 million per month from October 2026 through June 2029 for access to &#8220;approximately 110,000 NVIDIA GPUs, CPUs, memory, and other related components.&#8221;<\/p>\n\n<p class=\"wp-block-paragraph\">The deal is similar in length and scope to the one SpaceX <a href=\"https:\/\/techcrunch.com\/2026\/05\/20\/anthropic-will-pay-xai-1-25-billion-per-month-for-compute\/\" target=\"_blank\" rel=\"noreferrer noopener\">announced<\/a> with Anthropic in late May. As part of that deal, Anthropic agreed to pay SpaceX $1.25 billion per month through 2029 to rent all the available compute from its Colossus 1 data center near Memphis, Tennessee, that xAI \u2014 now part of SpaceX \u2014 originally built for its own artificial intelligence efforts.<\/p>\n\n<p class=\"wp-block-paragraph\">Google&#8217;s deal appears to be paying for roughly half the amount of compute that Anthropic has access to at Colossus 1. SpaceX didn&#8217;t say which specific data center Google would be using. CEO Elon Musk has previously suggested his company would reserve the Colossus 2 data center for xAI.<\/p>\n\n<p class=\"wp-block-paragraph\">Anthropic was significantly limited in its compute capacity prior to its deal with SpaceX, raising usage limits on the same day the deal was announced. Google is in a very different position, with some estimates naming it as the world&#8217;s <a href=\"https:\/\/epoch.ai\/data-insights\/google-custom-tpus-ai-compute\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">largest single owner of AI compute<\/a>. <\/p>\n\n<p class=\"wp-block-paragraph\">In a statement, a Google representative described the deal as a result of unexpected demand for its <a href=\"https:\/\/techcrunch.com\/2025\/10\/09\/google-ramps-up-its-ai-in-the-workplace-ambitions-with-gemini-enterprise\/\" target=\"_blank\" rel=\"noreferrer noopener\">recently launched AI products<\/a>. \u201cGoogle Cloud and SpaceX are long-time partners,&#8221; Google said in a statement. &#8220;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.\u201d<\/p>\n\n<p class=\"wp-block-paragraph\">But its parent company Alphabet is on a spending spree. Alphabet has already <a href=\"https:\/\/blog.google\/alphabet\/investor-presentation-june-2026\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">committed<\/a> to more than $180 billion in capital expenditures this year and has said it expects that to &#8220;significantly increase&#8221; in 2027. To help with that, Alphabet recently announced an $80 billion equity sale.<\/p>\n<div class=\"jw-player-inline-promo wp-block-techcrunch-jw-player-embed\">\n\t<script>\n\t\/* JW Player inline promo A\/B test \u2014 runs at parse time before the player library loads *\/\n\t(function() {\n\n\t\tconst bucket = window?.jwPlayerPromoBucket;\n\n\t\tif ( bucket === 'hide' ) {\n\t\t\tconst el = document.currentScript.parentNode;\n\t\t\tif ( el.classList.contains( 'jw-player-inline-promo' ) ) {\n\t\t\t\tel.remove();\n\t\t\t}\n\t\t}\n\t})();\n\t<\/script>\n\t<div id=\"jwplayer_6a29281a7a495\"><\/div>\n\t<script class=\"tcembed-script tcembed-script\" type=\"text\/javascript\" src=\"https:\/\/content.jwplatform.com\/libraries\/0NX4vsNk.js\"><\/script>\n\t<script>\n\t\tvar playerInstance_jwplayer_6a29281a7a495 = jwplayer( \"jwplayer_6a29281a7a495\" );\n\t\tplayerInstance_jwplayer_6a29281a7a495.setup({\n\t\t\tplaylist: \"https:\/\/cdn.jwplayer.com\/v2\/media\/E1nvf5Yu\",\n\t\t\t\t\t\t\t\t});\n\t<\/script>\n<\/div>\n\n<p class=\"wp-block-paragraph\">Also like the Anthropic deal, the agreement with Google includes a cancellation clause. Both SpaceX and Google have the option to terminate the agreement with 90 days&#8217; notice after December 31, 2026. Google&#8217;s access to the data center will ramp up &#8220;through September at a reduced fee,&#8221; according to the filing.<\/p>\n\n<p class=\"wp-block-paragraph\">&#8220;If we fail to deliver access to the committed amount of GPUs by September 30, 2026, then following a one-month grace period, Google may immediately terminate the agreement or accept the number of GPUs provided&#8221; with a reduction in the monthly fees, it reads. <\/p>\n\n<p class=\"wp-block-paragraph\">SpaceX announced the deal just one week before the company&#8217;s stock is expected to start trading on the Nasdaq exchange. Paperwork filed with the Securities and Exchange Commission shows the company is aiming to raise around $75 billion at a valuation of around $1.75 trillion \u2014 making it the largest in history.<\/p>\n\n<p class=\"wp-block-paragraph\">Google is a longtime investor in SpaceX. Its stake in Musk&#8217;s company is expected to be worth more than $100 billion <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2026-04-15\/alphabet-poised-for-100-billion-windfall-on-spacex-investment\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">after the IPO<\/a>. The companies are also <a href=\"https:\/\/www.wsj.com\/tech\/spacex-google-in-talks-to-explore-data-centers-in-orbit-7b7799e2\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">reportedly<\/a> in talks to try to build orbital data centers \u2014 a major component of SpaceX&#8217;s future plans post-IPO.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a statement, a Google representative described the deal as a result of unexpected demand for its recently launched AI products. <\/p>\n","protected":false},"author":133574628,"featured_media":3122878,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"tc-featured-article":false,"tc-header-option":"","tc-breaking-news":false,"tc-article-brief":false,"carmot_uuid":"","apple_news_api_created_at":"2026-06-05T18:57:25Z","apple_news_api_id":"aeb9d69e-2f8d-4417-800d-2f62fa49637b","apple_news_api_modified_at":"2026-06-05T21:02:59Z","apple_news_api_revision":"AAAAAAAAAAAAAAAAAAAACA==","apple_news_api_share_url":"https:\/\/apple.news\/ArrnWni-NRBeADS9i-kljew","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_is_hidden":false,"apple_news_is_paid":false,"apple_news_is_preview":false,"apple_news_is_sponsored":false,"apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"","apple_news_slug":"","apple_news_sections":[],"apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"tc_subtitle":"","tc_featured_image_disabled":false,"tc_exclude_from_rss_feed":false,"tc_exclude_from_content_rivers":false,"footnotes":""},"categories":[577047203],"tags":[577369974,119606,81,371748],"tc_region":[],"tc_event":[],"tc_storyline_tax":[],"coauthors":[577244940],"class_list":["post-3130087","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-artificial-intelligence","tag-ai-compute","tag-alphabet","tag-google","tag-spacex"],"apple_news_notices":[],"yoast_head":"<!-- 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Most recently, he was a reporter at Bloomberg News where he helped break stories about some of the most notorious EV SPAC flops. He previously worked at The Verge, where he also covered consumer technology, hosted many short- and long-form videos, performed product and editorial photography, and once nearly passed out in a Red Bull Air Race plane.","url":"https:\/\/techcrunch.com\/author\/sean-o-kane\/"}]}},"parsely":{"version":"1.1.0","canonical_url":"https:\/\/techcrunch.com\/2026\/06\/05\/google-will-pay-spacex-920m-per-month-for-compute\/","smart_links":{"inbound":0,"outbound":0},"traffic_boost_suggestions_count":0,"meta":{"@context":"https:\/\/schema.org","@type":"NewsArticle","headline":"Google will pay SpaceX $920M per month for compute","url":"https:\/\/techcrunch.com\/2026\/06\/05\/google-will-pay-spacex-920m-per-month-for-compute\/","mainEntityOfPage":{"@type":"WebPage","@id":"https:\/\/techcrunch.com\/2026\/06\/05\/google-will-pay-spacex-920m-per-month-for-compute\/"},"thumbnailUrl":"https:\/\/techcrunch.com\/wp-content\/uploads\/2026\/05\/GettyImages-2259661359.jpg?w=150","image":{"@type":"ImageObject","url":"https:\/\/techcrunch.com\/wp-content\/uploads\/2026\/05\/GettyImages-2259661359.jpg"},"articleSection":"AI","author":[{"@type":"Person","name":"Sean O'Kane"}],"creator":["Sean O'Kane"],"publisher":{"@type":"Organization","name":"TechCrunch","logo":"https:\/\/techcrunch.com\/wp-content\/uploads\/2015\/02\/cropped-cropped-favicon-gradient.png"},"keywords":["google","spacex","alphabet","ai compute"],"dateCreated":"2026-06-05T18:57:20Z","datePublished":"2026-06-05T18:57:20Z","dateModified":"2026-06-05T21:04:05Z"},"rendered":"<meta name=\"parsely-title\" content=\"Google will pay SpaceX $920M per month for compute\" \/>\n<meta name=\"parsely-link\" content=\"https:\/\/techcrunch.com\/2026\/06\/05\/google-will-pay-spacex-920m-per-month-for-compute\/\" \/>\n<meta name=\"parsely-type\" content=\"post\" \/>\n<meta name=\"parsely-image-url\" content=\"https:\/\/techcrunch.com\/wp-content\/uploads\/2026\/05\/GettyImages-2259661359.jpg?w=150\" \/>\n<meta name=\"parsely-pub-date\" content=\"2026-06-05T18:57:20Z\" \/>\n<meta name=\"parsely-section\" content=\"AI\" \/>\n<meta name=\"parsely-tags\" content=\"google,spacex,alphabet,ai compute\" \/>\n<meta name=\"parsely-author\" content=\"Sean O&#039;Kane\" \/>","tracker_url":"https:\/\/cdn.parsely.com\/keys\/techcrunch.com\/p.js"},"jetpack_featured_media_url":"https:\/\/techcrunch.com\/wp-content\/uploads\/2026\/05\/GettyImages-2259661359.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/techcrunch.com\/wp-json\/wp\/v2\/posts\/3130087","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/techcrunch.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/techcrunch.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/techcrunch.com\/wp-json\/wp\/v2\/users\/133574628"}],"replies":[{"embeddable":true,"href":"https:\/\/techcrunch.com\/wp-json\/wp\/v2\/comments?post=3130087"}],"version-history":[{"count":14,"href":"https:\/\/techcrunch.com\/wp-json\/wp\/v2\/posts\/3130087\/revisions"}],"predecessor-version":[{"id":3130192,"href":"https:\/\/techcrunch.com\/wp-json\/wp\/v2\/posts\/3130087\/revisions\/3130192"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/techcrunch.com\/wp-json\/wp\/v2\/media\/3122878"}],"wp:attachment":[{"href":"https:\/\/techcrunch.com\/wp-json\/wp\/v2\/media?parent=3130087"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/techcrunch.com\/wp-json\/wp\/v2\/categories?post=3130087"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/techcrunch.com\/wp-json\/wp\/v2\/tags?post=3130087"},{"taxonomy":"tc_region","embeddable":true,"href":"https:\/\/techcrunch.com\/wp-json\/wp\/v2\/tc_region?post=3130087"},{"taxonomy":"tc_event","embeddable":true,"href":"https:\/\/techcrunch.com\/wp-json\/wp\/v2\/tc_event?post=3130087"},{"taxonomy":"tc_storyline_tax","embeddable":true,"href":"https:\/\/techcrunch.com\/wp-json\/wp\/v2\/tc_storyline_tax?post=3130087"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/techcrunch.com\/wp-json\/wp\/v2\/coauthors?post=3130087"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}