Google, SpaceX Sign $30 Billion AI Infrastructure Supply Deal

Google and Elon Musk-led SpaceX have signed a roughly $30 billion contract for artificial intelligence computing infrastructure.

Bloomberg reported on June 5 that Google will pay SpaceX $920 million a month from October through June 2029 for AI computing capacity. The total value of the agreement is about $30 billion.

Under the deal, Google will secure the computing resources needed to operate large AI data centers, including 110,000 Nvidia GPUs, along with CPUs and memory.

The contract was arranged as Google moves to meet surging demand for its AI services. Google Cloud's order backlog has recently exceeded $460 billion.

Google said demand for its enterprise AI platform, Gemini Enterprise, is rising faster than expected. The company described the agreement as a short-term effort to secure infrastructure to meet customer demand.

SpaceX has recently expanded its AI data center business around xAI as it seeks to become a computing infrastructure supplier. The Google agreement ranks among the largest contracts SpaceX has secured in the AI infrastructure business.

Google can terminate the contract if SpaceX fails to deliver the promised Nvidia chips by the end of September, the report said.