Google Signs $920 Million-Per-Month Computing Deal with SpaceX to Boost AI Infrastructure
Google has agreed to pay Elon Musk's SpaceX $920 million a month for computing power as part of a cloud-services deal. According to a Securities Exchange Commission (SEC) filing by Spacex, the deal runs through mid-2029. As per the agreement, Google will pay Spacex the monthly fee from October through June 2029, with capacity ramping up through September at a reduced cost.
In case SpaceX fails to deliver the access to the 'guaranteed' Nvidia chips as part of the deal by September 30, Google has the right to terminate the contract, with a one-month grace period. SpaceX has announced the deal just days before the company’s stock is expected to start trading on the Nasdaq exchange. As per the SEC filing, the Google-Spacex compute deal covers approximately 110,000 NVIDIA GPUs, CPUs, memory, and other related components.
SpaceX Aligning the Agreement with Anthropic’s Deal
It seems like the arrangement is on par with the one SpaceX announced with Anthropic in late May, both in terms of duration and breadth. Under the terms of the agreement, Anthropic will rent all of the computing power from SpaceX's Colossus 1 data centre, located outside Memphis, Tennessee, for $1.25 billion per month until 2029. In the beginning, Elon Musk's xAI used this data centre for its own AI projects.
While SpaceX has hinted at a potential data centre for Google, the exact location remains a mystery. As a result of these agreements, Anthropic and Google will pay Spacex a total of $2.17 billion monthly for computing resources. A Google spokesperson said the company's newly released AI products had unexpectedly high demand, which led to the acquisition. Google Cloud and SpaceX have been collaborators for a long time, according to the corporation. Additionally, it was mentioned that this is a temporary arrangement to guarantee the company has enough capacity to handle the unprecedentedly high demand for its agent platform, Gemini Enterprise.
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Some Interesting Facts of the Story |
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1.The deal underscores how AI companies are
increasingly outsourcing computing capacity rather than building all
infrastructure internally. 2.SpaceX recently signed another major AI
infrastructure deal with Anthropic, reportedly worth $1.25 billion per month. 3.The AI infrastructure race is creating a new
category of business where computing power itself is becoming a strategic
asset. |
Google Longtime Investor in SpaceX
Spacex has, incidentally, had Google as an investor for quite some time. Following the initial public offering, its value in Elon Musk's company is projected to exceed $100 billion. Reportedly, the businesses are also discussing the possibility of constructing data centres in orbit. To put it simply, Spacex's future ambitions revolve around Centre. Sundar Pichai, CEO of Google, has also mentioned the company's fascination with space data centres.
In the United States and elsewhere, SpaceXAI is the target of numerous investigations and lawsuits. Legal actions were taken following Grok's facilitation of the creation and sharing of deepfake porn, or sexual images created without consent. Photos and videos of both youngsters and adults were altered to generate these false representations. Musk stated in March that Grok needs to be recreated after xAI lost talent. The business later reached an agreement that grants it the right to buy the artificial intelligence coding startup Cursor for $60 billion.
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Quick Shots |
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•Google has signed a cloud computing deal with
SpaceX worth $920 million per month through mid-2029. •The agreement covers access to approximately
110,000 NVIDIA GPUs, CPUs, memory, and related AI computing infrastructure. •Google can terminate the contract if SpaceX fails
to provide the promised NVIDIA chip capacity by September 30. •The deal is aimed at supporting surging demand for
Google’s Gemini Enterprise AI platform and other AI services. |
