Elon Musk’s SpaceX said Google parent Alphabet has agreed to pay $920 million a month for computing capacity under a cloud services deal running from October 2026 through June 2029.
According to a US exchange filing, the monthly payments would bring the total value of the agreement to about $30 billion over the life of the contract. The deal gives Google access to 110,000 Nvidia graphics processing units, along with central processing units, memory, and other related components.
Based on the capacity of Nvidia’s H200 chips, the agreement could represent more than 100 megawatts of computing power. That is roughly equal to the power needed to supply around 75,000 homes at the same time.
The filing also says Google can legally end the contract if SpaceX does not provide access to the Nvidia chips by September 30, with a one-month grace period. Either company can also terminate the agreement with 90 days’ notice.
A Google Cloud spokesperson said the deal will help the company meet growing demand for its AI services. Alphabet recently reported that Google Cloud’s backlog, which measures contracted work not yet recorded as revenue, nearly doubled from the previous quarter to more than $460 billion.
“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 spokesperson said.
SpaceX had earlier signed a similar agreement with Anthropic PBC. Analysts say that while xAI still trails some rivals in coding performance, the company believes its main advantage is data center infrastructure. The three-year-old business has already built capacity in Memphis, Tennessee, and is now expanding in Mississippi.
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SpaceX also disclosed earlier this year that Google owned a 6.11 percent stake in the company at the end of 2025. After SpaceX’s merger with Musk’s xAI, Google’s holding stood at around 5 percent.
