SpaceX just secured a massive $920 million monthly contract with Google for AI computing power. The deal kicks in at full price in October 2026 and runs through June 2029.

Google gains access to roughly 110,000 Nvidia GPUs plus CPUs, memory, and infrastructure housed in SpaceX’s xAI data centers. Payments start lower during a ramp-up phase ending in September.

If SpaceX fails to deliver the promised GPU count by September 30, Google can cancel the contract or accept fewer GPUs with a fee reduction. After December 2026, either side may terminate with 90 days’ notice. Google retains all rights to its AI models and data.

This deal follows a similar agreement between SpaceX and AI startup Anthropic, which committed to nearly $1.25 billion monthly fees for compute at SpaceX’s Colossus data centers. Combined, these contracts could generate about $26 billion annually for SpaceX.

SpaceX has spent billions building out its AI infrastructure. First-quarter capital expenditures hit $10.1 billion, with $7.7 billion funneled into AI-focused data centers. Despite heavy losses in this segment, SpaceX is betting big on monetizing its compute assets before its upcoming IPO.

Google’s move makes sense. The company recently launched Gemini Enterprise, its advanced AI platform, which demands massive computing power. Google raised its capital expenditure forecast to $180-$190 billion this year and plans to raise $85 billion in new stock to keep pace.

This contract flips the script on their past relationship. Five years ago, Google supported SpaceX’s Starlink satellite network with cloud infrastructure. Now, SpaceX supplies critical AI compute to Google.

The partnership underscores the intense competition for AI infrastructure. Even giants like Google need outside providers to meet surging demand for GPUs and data center capacity. SpaceX is positioning itself as a major player beyond space launches and satellite internet.

Elon Musk’s bet on xAI and its data centers is risky. The project has faced internal upheaval and product setbacks, yet these deals show SpaceX can monetize its investments. Whether this model pays off long-term remains to be seen.

For now, SpaceX’s AI compute contracts could rival revenue from Starlink and launch services. The IPO will reveal if investors believe this new revenue stream can sustain the company’s sky-high $1.75 trillion valuation target.