{"id":690573,"date":"2026-06-07T23:01:18","date_gmt":"2026-06-07T23:01:18","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/690573\/"},"modified":"2026-06-07T23:01:18","modified_gmt":"2026-06-07T23:01:18","slug":"google-signs-920m-monthly-compute-deal-with-spacex-companys-projected-annual-data-center-revenue-to-exceed-its-combined-proceeds-from-starlink-launch-services-and-ai-in-2025","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/690573\/","title":{"rendered":"Google signs $920M monthly compute deal with SpaceX \u2014 company\u2019s projected annual data center revenue to exceed its combined proceeds from Starlink, launch services, and AI in 2025"},"content":{"rendered":"

SpaceX just announced that it closed a multi-year deal to provide compute capacity to Google<\/a>. The agreement, which is worth $920 million per month, will begin in October 2026 and is expected to continue until June 2029. Reuters<\/a> said that the transaction includes 110,000 Nvidia GPUs, plus CPUs, memory, and all other components needed for AI processing.<\/p>\n

It appears that Elon Musk’s company will not deliver the entire 110,000-strong GPU compute capacity in one go \u2014 Google will pay a reduced monthly fee as the company brings more server racks online through September 30, 2027. If SpaceX cannot hit the 110,000-GPU target on that date plus a one-month grace period, then Google can cancel the agreement or settle for the lower number of available GPUs \u201cwith a corresponding pro-rata reduction in the monthly fees.\u201d It also gave the two parties the option to cancel the deal altogether after December 31, 2027, provided that they give a 90-day notice to the other.<\/p>\n

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This is the second major deal that SpaceX announced in months, as Anthropic secured the entire computing power of SpaceX\u2019s Colossus 1 data center<\/a> in early May. This was a surprising move, especially as Colossus 1 is one of the company\u2019s most hyped assets, which Elon Musk launched in just 19 days<\/a>. It turns out that launching it at such speed meant that it has a mix of H100, H200, and GB200 GPUs, which is resulting in efficiencies for training AI LLMs<\/a> as the faster GB200 GPUs end up waiting for the older, slower GPUs before it can complete each computational step. Anthropic is instead using it for inferencing, especially as it is struggling to keep up with the demands of its growing user base.<\/p>\n

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The combined annual value of just these two deals is already worth more than SpaceX\u2019s entire revenue for 2025. Reuters estimated that they would bring in more than $25 billion annually to the company, compared to the less than $20 billion that it made from Starlink, launch services, and AI revenue.<\/p>\n

These massive deals, worth more than $70 billion in total, will lift SpaceX as it targets a $1.75 trillion IPO on June 12, 2026. While it started out as a space exploration company and is known for commercially launching satellites at a fraction of the cost compared to NASA and providing relatively affordable and stable satellite internet, it\u2019s actively expanding towards orbital data centers. SpaceX acquired xAI earlier this year<\/a> to help achieve that dream and has even filed some documents at the FCC<\/a> detailing its plans. Google is also reportedly in talks with the company for a slice of the orbital data center pie<\/a>.<\/p>\n

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