Google to pay SpaceX $920 million a month for xAI compute capacity

SpaceX has reached a deal with Google to provide AI compute capacity at its data centers for $920 million a month, according to a regulatory filing on Friday. The agreement covers about 110,000 Nvidia GPUs, along with processors, memory and other hardware housed in SpaceX facilities. The contract runs from October 2026 through June 2029, with capacity expected to ramp up through September at a lower fee. If SpaceX does not deliver the committed GPU capacity by September 30, 2026, Google can end the deal or accept reduced capacity at a lower price after a grace period. The arrangement comes as SpaceX prepares for a planned IPO and expands its role in AI infrastructure. The company recently announced a separate compute agreement with Anthropic, while Google is increasing spending on AI to keep pace with rivals and meet rising demand.