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Google has agreed to pay SpaceX $920 million per month for AI compute capacity, adding a major cloud infrastructure deal to SpaceX’s business before its NASDAQ debut.
The agreement gives Google access to about 110,000 NVIDIA GPUs, along with CPUs, memory, and related hardware. It also places SpaceX deeper into the AI infrastructure market as investors review its record IPO terms.
SpaceX disclosed the Google agreement in a securities filing dated June 5, 2026. Under the deal, Google will pay $920 million per month from October 2026 through June 2029 for access to compute capacity.
The arrangement covers roughly 32 months and carries a total value near $30 billion if it runs through the full term. Capacity begins to ramp before October, with Google paying a lower fee during the early access period.
Meanwhile, the filing includes delivery terms tied to the promised GPU capacity. If SpaceX fails to provide the required GPUs by September 30, 2026, Google can cancel the agreement after a one-month grace period or accept lower capacity at a reduced cost.
The contract also includes a 90-day cancellation option beginning in 2027. That clause gives both sides room to adjust if demand, pricing, or available compute capacity changes over the agreement period.
The Google deal comes as SpaceX moves toward the largest IPO in market history. The company priced its shares at $135 each and raised $75 billion through the offering.
At that price, SpaceX carries an expected valuation of about $1.77 trillion. The company is set to trade on NASDAQ under the ticker SPCX, with investors watching demand after the shares open.
SpaceX is selling only a small portion of its total shares at the start. However, the size of the offering still places it above previous major listings, including Saudi Aramco’s 2019 market debut.
The IPO also gives investors a closer view of SpaceX’s wider business mix. The company now combines rockets, Starlink, government contracts, satellite services, and AI compute infrastructure under one public-market story.
The agreement shows how large technology firms are seeking more compute capacity as AI demand rises. Google’s Gemini Enterprise and other AI services require large GPU clusters to train and run advanced models.
For years, the main shortage in AI centered on chips. However, data centers now face wider limits tied to energy supply, grid connections, cooling systems, and physical space.
That shift gives infrastructure owners more value in the AI market. Companies that can provide GPUs, power access, and data center capacity can become major suppliers, even when AI software is not their main business.
Reports also show that large hyperscalers are planning hundreds of billions of dollars in capital spending this year. Amazon, Alphabet, Meta, Microsoft, and Oracle are all expanding AI infrastructure budgets as demand for cloud compute grows.
The IPO has drawn strong interest, but some analysts have questioned whether the valuation already prices in too much future growth. SpaceX reported $18.7 billion in revenue for 2025, while the Google deal alone could add about $11 billion in annualized revenue.
University of Florida IPO expert Jay Ritter said current valuations for SpaceX and major AI firms are based on future profit scenarios rather than present earnings. He added, “A great company isn’t necessarily a great investment.”
Sinead O’Sullivan, an economist who has worked at NASA, also questioned the share price. She said, “Do I believe that Elon Musk is great at executing technological innovation? Yes.” However, she added that the current price may not reflect future value, saying, “Probably not.”
For now, investors are tracking two dates. SpaceX shares begin trading after the IPO pricing, while the Google compute agreement faces its first delivery test around the September 30 GPU deadline.
Also Read: Is Elon Musk Playing it Safe by Trimming SpaceX’s IPO Target to $1.8 Trillion?
