Google will pay SpaceX $920M per month for compute

But its parent company Alphabet is on a spending spree. Alphabet has already committed to more than $180 billion in capital expenditures this year and has said it expects that to “significantly increase” in 2027. To help with that, Alphabet recently announced an $80 billion equity sale.

Also like the Anthropic deal, the agreement with Google includes a cancellation clause. Both SpaceX and Google have the option to terminate the agreement with 90 days’ notice after December 31, 2026. Google’s access to the data center will ramp up “through September at a reduced fee,” according to the filing.

“If we fail to deliver access to the committed amount of GPUs by September 30, 2026, then following a one-month grace period, Google may immediately terminate the agreement or accept the number of GPUs provided” with a reduction in the monthly fees, it reads.

SpaceX announced the deal just one week before the company’s stock is expected to start trading on the Nasdaq exchange. Paperwork filed with the Securities and Exchange Commission shows the company is aiming to raise around $75 billion at a valuation of around $1.75 trillion — making it the largest in history.

Google is a longtime investor in SpaceX. Its stake in Musk’s company is expected to be worth more than $100 billion after the IPO. The companies are also reportedly in talks to try to build orbital data centers — a major component of SpaceX’s future plans post-IPO.