Google to pay SpaceX $920 million monthly

Google has signed a major agreement with Elon Musk's SpaceX to expand its artificial intelligence capabilities, committing to pay the company $920 million per month under a multi-year deal aimed at securing advanced computing infrastructure.

According to a TechCrunch report, the agreement will run from October 2026 to June 2029, with Google gaining access to approximately 110,000 Nvidia GPUs, along with CPUs, memory resources, and related computing infrastructure to support its growing AI operations.

SpaceX said the deal is intended to address rapidly increasing demand for AI services by expanding available computing capacity. Google, meanwhile, noted that usage of its AI offerings, particularly Gemini Enterprise and its AI agent platforms, has grown faster than expected.

The agreement follows a similar deal reportedly signed by SpaceX with AI company Anthropic in May, valued at $1.25 billion per month.

Google's parent company, Alphabet, has already announced plans for more than $180 billion in capital expenditure this year and is also pursuing an $80 billion share sale initiative to further expand its AI infrastructure.

Under the terms of the contract, either party may terminate the agreement with 90 days' notice after December 31, 2026.

Reports also suggest that SpaceX is preparing for a stock market listing next week, aiming to raise around $75 billion, which could value the company at approximately $1.75 trillion.

Analysts say the intensifying competition in the AI sector is driving technology giants to invest heavily in securing the computing power needed to develop and deploy advanced AI products and services.