Google to pay SpaceX $920 million a month for cloud compute at xAI data centers

business technology big tech cloud computing

SpaceX and Alphabet's Google have entered into a multi-year cloud service agreement to provide Google with access to compute capacity. The deal, announced on Friday, establishes a new revenue stream for SpaceX's AI business.

Under the terms of the agreement, Google will pay SpaceX $920 million per month from October of this year through June 2029. Capacity will ramp up through September at a reduced fee.

The compute capacity provided includes approximately 110,000 Nvidia GPUs, CPUs, memory, and other related components.

The companies announced the deal just one week ahead of SpaceX's planned historic IPO.

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