Google Signs $30 Billion Cloud Computing Deal With SpaceX For AI Capacity

Google parent Alphabet has entered into a major cloud services agreement with Elon Musk’s SpaceX, committing to pay $920 million per month for computing capacity from October 2026 through June 2029.

A US regulatory filing valued the deal at roughly $30 billion over its duration.

The agreement will provide Google access to 110,000 Nvidia graphics processing units (GPUs), along with central processing units (CPUs), memory and other related computing components.

Based on the processing capability of Nvidia’s H200 chips, the arrangement could represent more than 100 megawatts of computing power.

Analysts estimate that the amount of energy could power approximately 75,000 homes at any given time.

The filing also outlined contractual safeguards.

SpaceX must provide access to the Nvidia chips by September 30. If it fails to do so, Google will have the right to terminate the agreement after a one-month grace period.

Additionally, either party can end the contract by providing 90 days’ notice.

A Google Cloud spokesperson said the agreement would help the company address rising demand for its artificial intelligence offerings.

Alphabet recently reported that Google Cloud’s backlog had nearly doubled sequentially to more than $460 billion. The backlog represents contracted work that has yet to be recognised as revenue.

“This is a short-term, timely agreement to ensure we have bridge capacity to meet surging customer demand for our agent platform, Gemini Enterprise, which has been even higher than we expected,” the Google spokesperson said in a statement.

SpaceX had previously signed a similar arrangement with Anthropic PBC.

Industry analysts noted that xAI trails some competitors in coding capabilities. The company is focusing on building a competitive advantage through large-scale data centre infrastructure.

The company has already developed facilities in Memphis, Tennessee, and is expanding operations in Mississippi.

Earlier this year, SpaceX disclosed that Google held a 6.11 per cent stake in the company at the end of 2025.

Following SpaceX’s merger with Musk’s xAI, Google’s ownership stake stood at approximately 5 per cent.