Google has signed a large-scale computing agreement with SpaceX in a major technology deal. The announcement was made through a regulatory filing on Friday. The deal comes as SpaceX prepares for its expected IPO.
Under the agreement, Google will pay around 920 million dollars per month. The payments will continue from October 2026 to June 2029. The total value of the contract is expected to exceed 20 billion dollars.
In return, Google will receive access to a large pool of computing resources. This includes about 110,000 NVIDIA GPUs, along with CPUs, memory, and related hardware. The deal is designed to support high-performance computing needs.
The agreement highlights rising demand for artificial intelligence infrastructure. Companies are increasingly competing for advanced computing power. This demand is driven by fast growth in AI products and services.
SpaceX has signed similar agreements in recent months. One major deal was also made with Anthropic, another artificial intelligence company. These contracts show the increasing value of compute capacity.
Google said the agreement is meant to support strong demand for its AI tools. The company noted higher-than-expected usage of its new platforms. These include enterprise-level AI services and systems like Gemini Enterprise.
A spokesperson for Google said the partnership with SpaceX is long-standing. The deal will help the company manage short-term demand spikes. It also ensures stable computing access for its customers.
Parent company Alphabet is also increasing spending on infrastructure. It has already committed more than 180 billion dollars in capital expenditure this year. Further increases are expected in 2027.
Alphabet has also announced a major 80 billion dollar equity sale. This is part of its plan to fund long-term expansion in AI and cloud computing.
The SpaceX agreement includes a cancellation clause. Both companies can end the contract with 90 days’ notice after December 31, 2026.
Access to computing power will increase gradually until September 2026. If SpaceX fails to meet GPU delivery targets, Google may reduce its commitment or terminate the deal.
The deal comes shortly before SpaceX’s expected IPO on Nasdaq. The company is targeting a valuation of around 1.75 trillion dollars.
Google is also a long-time investor in SpaceX. Its stake in the company is expected to become highly valuable after the listing.
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Reports also suggest both companies are exploring future projects. These may include orbital data centers to support next-generation computing systems.
