SpaceX Secures Major Deal with Google Ahead of IPO

Elon Musk’s SpaceX will earn $920 million monthly from Google, according to a filing on Friday. This agreement starts in October and will continue until June 2029, potentially bringing in $30 billion total for SpaceX as it gears up for a public offering.

The deal positions SpaceX, owner of the artificial intelligence lab xAI, as a key infrastructure provider amid intense competition in the AI industry.

As part of the agreement, Google will access around 110,000 Nvidia AI chips. This move aims to address increased demand for Google’s AI models. Earlier, Google reported contracts worth $460 billion pending revenue in its cloud business, highlighting substantial service demand.

“Google Cloud and SpaceX are longtime partners,” stated a Google Cloud spokesperson. “This temporary agreement ensures bridge capacity to meet rising demand for Gemini Enterprise, surpassing our expectations.”

SpaceX’s previous deal offered computing power to Anthropic, another AI lab aiming to go public this year, for $1.25 billion monthly.

SpaceX’s imminent IPO is projected to value the company at over $1.7 trillion, potentially making Elon Musk a trillionaire.

In preparations for going public, SpaceX has been more transparent about financials to attract investors. Musk has developed a supercomputer in Memphis for xAI, but the company trails competitors like OpenAI, Anthropic, and Google.

Musk has increasingly highlighted xAI’s computing potential as a revenue source, as seen in agreements with Anthropic and Google. He also revealed plans for a chip factory in Texas and SpaceX’s $60 billion acquisition of AI startup Cursor.

The partnership deepens ties between Google and SpaceX. Google, holding a 5% stake in SpaceX, has considered SpaceX for launching data centers in space, a goal known as Project Suncatcher.