Google to Pay SpaceX $920M Monthly for Compute Ahead of IPO

SpaceX has secured a significant compute deal with Google, just ahead of its highly anticipated initial public offering (IPO). According to a regulatory filing on Friday, Google will pay SpaceX $920 million per month from October 2026 through June 2029 for access to approximately 110,000 NVIDIA GPUs, CPUs, memory, and other related components. The deal is similar in scope and length to one SpaceX announced with Anthropic in late May, where Anthropic agreed to pay $1.25 billion per month through 2029 to rent all available compute from SpaceX's Colossus 1 data center near Memphis, Tennessee.

Google's deal appears to be paying for roughly half the amount of compute that Anthropic has access to at Colossus 1, although SpaceX did not specify which data center Google would be using. CEO Elon Musk has previously suggested that his company would reserve the Colossus 2 data center for xAI. Google, on the other hand, is a longtime investor in SpaceX and is expected to see its stake in the company worth more than $100 billion after the IPO.

The companies are also reportedly in talks to build orbital data centers, a major component of SpaceX's future plans post-IPO. The deal includes a cancellation clause, allowing both SpaceX and Google to terminate the agreement with 90 days' notice after December 31, 2026. Google's access to the data center will ramp up through September at a reduced fee.

If SpaceX fails to deliver access to the committed amount of GPUs by September 30, 2026, Google may immediately terminate the agreement or accept the number of GPUs provided with a reduction in monthly fees. The compute deal comes as Alphabet, Google's parent company, is on a spending spree, committing to over $180 billion in capital expenditures this year, with plans to significantly increase that amount in 2027. To help with that, Alphabet recently announced an $80 billion equity sale.

SpaceX is expected to start trading on the Nasdaq exchange next week, aiming to raise around $75 billion at a valuation of around $1.75 trillion, making it the largest IPO in history.