SpaceX Google Cloud Deal Worth $920M Monthly
SpaceX Google cloud deal adds recurring AI compute revenue ahead of a planned Nasdaq IPO and bolsters valuation narratives that may shift investor flows.
KEY TAKEAWAYS
- SpaceX entered a cloud-service agreement committing Google to pay about $920M per month for 32 months.
- The pact covers roughly 110,000 NVIDIA GPUs housed in Colossus data centers near Memphis.
- It strengthens recurring revenue narratives ahead of SpaceX's planned Nasdaq IPO under ticker SPCX.
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Space Exploration Technologies Corp. (SpaceX) secured a months-long cloud service agreement with Alphabet’s Google, reported on June 5, 2026, that adds a significant recurring revenue stream to SpaceX’s AI data-center business as it prepares for a Nasdaq listing under the ticker SPCX.
Deal Terms, Capacity, and Contract Flexibility
The agreement grants Google access to roughly 110,000 NVIDIA GPUs, along with CPUs, memory, and other components housed in SpaceX’s Colossus data centers near Memphis, Tennessee. These facilities were originally built for xAI, now part of SpaceX. The contract runs from October 2026 through June 2029, a 32-month term implying an aggregate value of about $29.4 billion based on the reported monthly payment.
The deal is structured as a cloud-service, compute-rental agreement designed to support large-scale AI workloads hosted on SpaceX infrastructure. Both SpaceX and Google reportedly have the option to terminate the contract with 90 days’ notice after December 31, 2026, indicating an initial noncancellable period through that date. The announcement appeared in a regulatory filing.
Strategic Context and IPO Implications
This agreement creates a recurring revenue stream for SpaceX’s AI and compute business ahead of its planned Nasdaq IPO. SpaceX’s amended registration statement on Form S-1/A discloses obligations tied to AI infrastructure assets, including failed sale-leaseback transactions and other noncancellable commitments. The compute contracts could help monetize these assets.
SpaceX previously reached a similar compute rental deal with Anthropic, under which Anthropic agreed to pay about $1.25 billion per month through 2029 for access to Colossus compute. The Google contract is characterized as similar in length and scope.
Public reports place SpaceX’s targeted IPO raise at roughly $75 billion, with an aspirational valuation near $2 trillion. Bankers are negotiating underwriting fees below 0.75% on the planned proceeds.
For Alphabet, the pact supplies additional AI compute capacity amid rising demand for GPU-based workloads that strain existing on-premises and cloud inventories. It positions SpaceX as a nontraditional hyperscale supplier complementing Google’s internal data centers and custom hardware investments.
