In a significant development for the rapidly expanding artificial intelligence landscape, Google has inked a substantial deal with SpaceX, agreeing to pay approximately $920 million per month for access to compute capacity at xAI's data centers. This strategic agreement, disclosed on June 5, 2026, will run from October 2026 through June 2029, totaling an estimated $30 billion over its term.

The agreement provides Google with access to approximately 110,000 NVIDIA GPUs, along with essential CPUs and memory, to bolster its AI infrastructure. A spokesperson for Google Cloud explained that this is a "short-term, timely agreement" designed to provide "bridge capacity to meeting the surging demand" for its Gemini Enterprise AI subscription service, which has seen higher-than-anticipated uptake.

This move highlights the immense demand for AI computing power, a resource that even tech giants like Google, with extensive data center networks, are finding challenging to scale quickly enough. The deal underscores a broader trend in the AI boom, where companies are racing to secure the necessary computational resources.

This partnership is not SpaceX's only major compute deal. The company also has an agreement with Anthropic, granting them access to xAI's Colossus 1 data center for a reported $1.25 billion per month through May 2029.

The disclosure of this agreement comes as SpaceX prepares for its Initial Public Offering (IPO) on June 12, 2026. The terms of the deal, including specific delivery conditions for the GPUs and cancellation clauses, were detailed in SpaceX's amended S-1 filing with the Securities and Exchange Commission.

Google's increased investment in AI infrastructure is part of a larger trend, with Alphabet increasing its capital expenditures significantly to meet AI demand. This partnership with SpaceX demonstrates a willingness to leverage external resources to maintain a competitive edge in the fast-paced AI sector.